NALCO Doubles Profit as Aluminium, Copper Prices Surge: Consolidating Strength Amid Global Volatility

In a year marked by macroeconomic uncertainty and global commodity volatility, National Aluminium Company Limited (NALCO) has emerged as a standout performer in India’s metal sector. The state-owned enterprise announced a doubling of its net profit for the fiscal year, propelled by a sharp rise in aluminium and copper prices in international markets.

The robust financial performance reflects NALCO’s strategic resilience, operational efficiency, and ability to leverage favourable market conditions even as supply chain disruptions and geopolitical tensions roil global trade.

Metal Market Rally Powers Profit Surge

NALCO’s strong performance has been driven primarily by the global upswing in aluminium and copper prices, driven by:

• A resurgence in infrastructure demand globally, particularly from China and the US

• Accelerated adoption of electric vehicles (EVs) and renewable energy technologies

• Supply constraints due to environmental curbs on mining and smelting

• Strategic stockpiling by governments and manufacturers amid geopolitical instability

During the past fiscal year, aluminium prices surged to multi-year highs, averaging above $2,500 per tonne, while copper prices remained buoyant, averaging over $9,000 per tonne. These price movements provided a significant tailwind to NALCO’s earnings.

Financial Highlights (FY 2024-25)

• 📈 Net Profit: More than doubled YoY

• 🏭 Aluminium Production: Increased marginally due to capacity optimization

• 📦 Sales Revenue: Boosted by both volume and price growth in aluminium and alumina

• 📊 EBITDA Margins: Expanded significantly due to operational leverage and better realizations

• 🔌 Power Segment Contribution: Improved efficiency in captive power plants supported cost control

Strategic Strength and Government Support

As a Navratna PSU under the Ministry of Mines, NALCO has long played a crucial role in India’s non-ferrous metals sector. The company’s performance underscores its ability to:

• Withstand global commodity price swings through long-term strategic planning

• Maintain low-cost operations by controlling inputs via captive power and bauxite mines

• Support India’s self-reliance agenda in key sectors like defence, aerospace, energy, and transportation

Moreover, policy support from the Indian government—through the National Aluminium Policy, increased infrastructure spending, and focus on critical mineral security—has added tailwinds to the company’s growth prospects.

Copper Upside: Diversification and Demand

While aluminium remains NALCO’s core, the recent rise in copper prices also contributed to improved margins, either through direct or allied trading and processing activity. With India aiming to reduce import dependence in copper, NALCO’s potential diversification into copper mining and processing could serve as a future growth lever.

Navigating Global Volatility

Despite the profit surge, the company remains cautious. Volatility in fuel prices, potential trade restrictions, and global recessionary trends remain key risks. However, NALCO’s strategic focus on:

• Sustainable operations

• Digitalization and automation in mining and processing

• Global partnerships for raw material security

• Green aluminium initiatives aligned with ESG goals

positions it strongly for long-term growth.

 Building on Momentum

With the global clean energy transition accelerating, demand for aluminium and copper is poised to rise in sectors like solar, EVs, wind, and power transmission. NALCO is expected to benefit immensely as a key domestic supplier with strong backward integration and capacity expansion plans in place.

The company’s strategic investments in refinery upgrades, greenfield projects, and exploration will play a vital role in maintaining momentum and securing market leadership in the years ahead.