1. Opening Hook
While most metal companies were whining about “macroeconomic headwinds,” NALCO showed up with its sleeves rolled and bauxite dust on its face. The Navratna PSU decided to flex with record excavation, booming alumina, and a refinery expansion timeline that doesn’t read like a government project delay. From lithium dreams in Argentina to refinery revamps in Odisha, the company’s ambition screamed “global miner, Indian heart.”But hold that smirk—beneath the glowing metrics, costs and timelines are quietly testing gravity. Strap in; it gets more interesting as the aluminium melts and margins shift shape.
2. At a Glance
- Revenue up 7.3%:Management swears it’s “efficiency,” not spreadsheet wizardry.
- PAT up 34%:Even PSU patience pays when alumina flows like monsoon rivers.
- H1 revenue up 18%:Sales graphs climbed faster than Odisha’s humidity.
- PBT jumped 47%:CFO finally had something to grin about at tea time.
- Expenses down 3.3%:Rare PSU miracle—someone actually controlled costs.
- Stock steady:Traders blinked, muttered “government stock,” and moved on.
3. Management’s Key Commentary
“We recorded the best-ever Q2 and H1 performance in production and financials.”(Translation: The PSU finally hit its gym goals this quarter 😎)
“Our alumina production rose 15%, bauxite 13%, and revenues 7% YoY.”(Translation: We mined, refined, and sold like we were on commission—almost.)
“Refinery expansion is 80% complete; commissioning by June 2026.”(Translation: If the monsoon behaves and bureaucracy naps, we might actually hit it.)
“Smelter expansion of 5 lakh tons planned by 2030.”(Translation: Long-term dreams that’ll outlive a few chairmen and governments.)
“Total capex for smelter and power: ₹30,000 crore.”(Translation: Please, banks, keep your doors open.)
“Cash and equivalents at ₹7,900 crore—may touch ₹20,000 crore soon.”(Translation: PSU with liquidity this fat? Someone call the dividend police.)
“No hedging; prices linked to LME transparently.”(Translation: We trust LME more than consultants or astrologers.)
4. Numbers Decoded
| Metric | Q2FY26 | YoY Change | Commentary |
|---|---|---|---|
| Bauxite Excavation | +13% | Up | Digging deeper, literally. |
| Alumina Production | +15% | Up | The money-maker of the show. |
| Cast Metal Production | +3.5% | Mild | Small tonnage, big tone. |
| Alumina Sales (H1FY26) | 7 lakh tons | +81% | Bauxite turned gold. |
| PAT | ₹1,000+ Cr (est.) | +34% | Profits glowing like molten aluminium. |
| Refinery Completion | 80% | On Track | Engineers sleeping less, finally. |
| Cash & Equivalents | ₹7,900 Cr | +∞ | Treasury flex. |
| Capex (Refinery) | ₹4,500 Cr spent | ₹600–700 Cr more FY26 | “Just a few crores more” energy. |
(Efficiency, not alchemy, they claim.)
5. Analyst Questions
Q:“Are we on track for refinery commissioning?”A:“Yes, June 2026. Pinky promise.” (Translation: Delays are now fashionable only in other PSUs.)
Q:“Smelter DPR done?”A:“Consultant appointed. DPR in six months.” (Translation: Consultants first, production later.)
Q:“Lithium mines in Argentina?”A:“Non-invasive tests done; drilling soon.” (Translation: Lithium dreams powered by hope and geology.)
Q:“Coal costs falling?”A:“Yes, and CESS removal helps.” (Translation: For once, policy worked in our favour.)
Q:“Employee cost outlook?”A:“Declining with retirements.” (Translation: Attrition = margin expansion.)
6. Guidance & Outlook
Management painted 2030 in aluminium hues—refinery expansion done by mid-2026, 5 lakh tons smelter online by end of decade, and a shiny ₹30,000 crore capex
