Hindalco Industries, a flagship company of the Aditya Birla Group, has posted robust financial results for the fourth quarter of the financial year 2024–25 (Q4 FY25). Despite market caution and a slight dip in its stock price, the company has reported a significant 66% year-on-year (YoY) jump in net profit, highlighting its resilient operations and strategic direction. Investors and analysts are closely watching the company’s next moves, particularly following its recent acquisition in the mining sector.
Q4 FY25 Financial Performance: Key Metrics
Hindalco’s financial results for Q4 FY25 reflect a sharp improvement across key operational parameters:
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Revenue: ₹64,890 crore, up 16% YoY from ₹55,994 crore in Q4 FY24.
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Net Profit: ₹5,283 crore, rising 66% from ₹3,174 crore.
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EBITDA: ₹9,774 crore, reflecting a 24% increase compared to ₹7,899 crore in the same period last year.
This stellar performance has been largely driven by operational efficiencies, lower input costs, and strength in its aluminium upstream and downstream businesses.
Segment-Wise Highlights
Aluminium Business Performance
The aluminium division, a core segment for Hindalco, demonstrated strong earnings growth. The upstream business achieved its highest-ever EBITDA at ₹4,838 crore, representing a 79% YoY surge. This growth was supported by stable aluminium prices, improved realizations, and declining input costs.
The downstream aluminium business also performed well, achieving an all-time high EBITDA of ₹219 crore, which is a 52% YoY increase. This was enabled by a better product mix and operational efficiencies across plants.
Copper Segment Results
The copper business showed moderate but steady growth, with revenue rising to ₹14,565 crore in Q4 FY25, reflecting an 8% YoY increase. EBITDA from the copper business stood at ₹614 crore, maintaining stability despite global challenges such as lower treatment and refining charges. The copper division remains an important diversification pillar for the company’s overall earnings.
Novelis: Global Subsidiary Update
Hindalco’s US-based subsidiary, Novelis, contributed significantly to consolidated performance. Novelis posted a 13% increase in revenue, reaching $4.6 billion. However, adjusted EBITDA declined by 8% to $473 million due to higher scrap prices and increased operating costs. On the positive side, net income attributable to Hindalco rose 77% YoY to $294 million, supported by favorable metal price lag and derivative gains.
Strategic Acquisition: EMMRL Deal
A notable development in Q4 was Hindalco’s strategic acquisition of a 100% equity stake in EMIL Mines and Mineral Resources Limited (EMMRL), a subsidiary of Essel Mining & Industries Limited. The deal, valued at ₹48 lakh, includes the assumption of EMMRL’s net debt of ₹1,131 crore.
This acquisition marks a critical move for Hindalco to ensure long-term coal availability, especially for its smelting operations. The Bandha coal block, which EMMRL controls, has an estimated mineable reserve of around 197 million tonnes and a projected mine life of approximately 45 years. This acquisition is expected to enhance Hindalco’s backward integration and cost competitiveness in the aluminium segment.
Dividend Declaration
Reflecting the company’s strong financial footing, Hindalco’s board of directors recommended a final dividend of ₹5 per share for FY25. This is a 43% increase from the previous year’s dividend of ₹3.5 per share. The announcement underscores the management’s confidence in future cash flows and its commitment to rewarding shareholders.
Share Price Movement and Market Sentiment
Despite the strong quarterly results, Hindalco’s share price saw a minor drop on the day of the announcement. On May 21, 2025, the share price fell by 0.77% or ₹4.70 to hit an intraday low of ₹657.70. At market close, the stock was trading at ₹658.05 per share.
The drop, however, appears to be a result of short-term profit booking or investor caution ahead of the next trigger. Over the past five years, Hindalco has delivered a remarkable 426.79% return to its shareholders, reaffirming its long-term wealth creation potential. The current dividend yield stands at 0.53%, with a 52-week high of ₹772.65 and a 52-week low of ₹546.45.
Broader Outlook: What Lies Ahead
The Q4 FY25 results mark a pivotal moment for Hindalco Industries, setting the stage for future growth across its core segments. With key tailwinds in place, such as stable aluminium prices, recovery in global demand, and supply security through resource integration, the company is well positioned for sustainable profitability.
The acquisition of EMMRL is particularly significant as it enhances operational security in energy sourcing, a critical input for aluminium production. In the backdrop of increasing raw material volatility, this backward integration is expected to stabilize margins and ensure reliable coal supply over the long term.
The consistent growth in the copper business and the resilience of Novelis reinforce Hindalco’s diversified revenue base. Going forward, Novelis’ planned capacity expansions and strategic investments in recycling and sustainability will also support the group’s global ambitions.
Challenges to Watch
Despite the optimistic outlook, there are a few headwinds to monitor:
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Volatility in global commodity prices could impact earnings.
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Rising energy costs in international markets may pressure margins.
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Regulatory and environmental challenges around mining and resource acquisition need to be navigated carefully.
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Currency fluctuations and interest rate changes in the US could affect Novelis’ performance.
Nonetheless, Hindalco has demonstrated a strong track record of managing risks and capitalizing on market opportunities through agile strategic execution.
Final Thoughts
Hindalco Industries has delivered a strong Q4 FY25 performance, characterized by a sharp rise in net profit and sustained revenue growth. With its strategic acquisition of EMMRL, the company has secured an important natural resource advantage that will play a key role in its future expansion plans.
Investors may be cautious in the short term, but the underlying fundamentals remain strong. With solid operational metrics, prudent capital allocation, and forward-looking initiatives, Hindalco appears to be on a firm trajectory for long-term value creation.
As the metals industry navigates cyclical challenges, Hindalco’s performance in Q4 FY25 affirms its leadership and adaptability in a dynamic global landscape. The coming quarters will be critical in assessing the impact of strategic decisions and how they translate into shareholder returns.
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