Hindalco Sees Strong India Demand in Aluminium, Copper Businesses in April-June

Hindalco Industries Ltd.’s downstream aluminium volumes rose 6% on year in April-June, led by strong demand in the electrical, industrial and packaging sectors, the company said in a post-earnings call Tuesday.

Upstream aluminium shipments fell 1% due to inventory build-up and logistics issues at its new Aditya Flat Rolled Products plant in Odisha. The company expects these to recover in the second quarter.

Electrical sector demand was “extremely strong”, driven by double-digit growth in long-distance conductors, cables and wires, while the industrial sector, including white goods, also performed well. Auto sector demand picked up sequentially. Packaging demand remained robust, supported by anti-dumping measures on Chinese foil and foil stock.

Copper shipments rose 4% on year, but EBITDA fell 16% due to a 70% drop in treatment and refining charges, despite higher sales and strong sulphuric acid prices. As a custom smelter, Hindalco earns mainly from conversion and refining margins rather than copper prices.

The company sees strong domestic demand heading into the festive season and does not expect US tariffs to impact its India business, as most sales are domestic or to Southeast Asia and Far East markets.

Consolidated net profit for the quarter rose 30.3% on year to ₹40.04 billion, while revenue climbed 12.7% to ₹642.32 billion. India operations drove growth, while US unit Novelis saw lower numbers due to higher scrap prices and tariffs.