India's Hindalco beats Q4 profit view as lower costs outpace weak aluminium prices

India's Hindalco Industries HINDALCO, one of the country's largest aluminium and copper producers, reported a higher-than-expected fourth-quarter profit on Friday, as lower costs outpaced lacklustre aluminium prices.

The company, owned by the Aditya Birla Group, said its consolidated net profit rose 31.6% to 31.74 billion rupees ($382.2 mln) for the three months ended March 31, beating analysts' average estimates of 28.01 billion rupees, per LSEG data.

Improved availability of domestic coal kept the cost of thermal coal low, according to analysts. Thermal coal and bauxite are key raw materials used by aluminium and copper producers such as Hindalco.

The cost of raw materials consumed, which accounts for more than 60% of the total expenses, fell 2.9%.

The total expenses dropped 2.2% from a year earlier, pushing up profit, as revenue came in nearly flat.

Novelis, the world's largest aluminium recycler accounting for about 60% of Hindalco's revenue, reported a 6.4% fall in revenue, hurt by "lower average aluminium prices, partially offset by higher total shipments," the company said earlier this month.

Prices for the benchmark three-month aluminium price on the London Metal Exchange ALI1! fell 8.2% in the January-March quarter from a year ago.

Hindalco said it expects to complete Novelis’ Bay Minette project in the U.S. by the second half of calendar 2026.

Revenue from Hindalco's second biggest segment, copper, grew nearly 20% during the quarter, backed by higher domestic sales.

The total revenue from operations for the world's largest producer of rolled aluminium was at 559.94 billion rupees, just 0.2% higher than the year-ago period.

Hindalco shares were about 0.5% higher after the results. The stock lost 8.9% in the quarter against the benchmark Nifty 50's NIFTY 2.7% rise.

($1 = 83.0546 Indian rupees)