India Lifts Hindalco's Q3 Show

Hindalco Industries Ltd managed to sail through the December quarter (Q3FY25).

- Ashish Agrawal

While its India business did well, the company's US subsidiary Novelis remained under pressure, thanks to significantly higher aluminum scrap prices and an adverse product mix, which led to an 18% year-on-year drop in Ebitda. Note that about two-thirds of Novelis production capacity uses aluminum scrap as raw material, thus higher prices hurt profitability.

Still, Hindalco's consolidated Ebitda, excluding other income, was up nearly 26% to ₹7,601 crore in Q3. Profitability was led by its domestic upstream aluminum business where Ebitda jumped 73% to ₹4,200 crore, aided by a substantial increase in realization—up nearly 24%.

What's more, the segment's profitability is expected to stay strong ahead, supported by high aluminum prices and stable input costs. Upstream aluminum and Novelis contributed 51% and 37.5% to Hindalco's Q3 reported consolidated Ebitda, including other income.