Hindalco Industries Ltd, the flagship metals company of the Aditya Birla Group, released its Q4FY25 earnings on May 20, 2025, and the market responded with caution. While revenue growth held steady, the company's net profit saw a noticeable dip due to global headwinds and lower realizations in the aluminium segment.
Despite this, Hindalco declared a Rs 3.50 per share final dividend, reaffirming its commitment to shareholder value even in a challenging macroeconomic environment.
Q4FY25 Earnings Snapshot:
Revenue from operations: Rs 54,550 crore (vs Rs 55,857 crore YoY) — marginal decline of 2.3% YoY
Net Profit: Rs 2,412 crore (vs Rs 2,411 crore YoY) — flat performance
EBITDA: Rs 6,457 crore (vs Rs 6,792 crore YoY) — down 5% YoY
EBITDA Margin: 11.8%, slightly lower than 12.2% in Q4FY24
The flat profit performance came despite operational challenges in the global aluminium and copper markets. Lower aluminium prices on the London Metal Exchange (LME) and higher coal costs weighed on margins. The company’s U.S. subsidiary Novelis, however, remained a strong contributor, supported by demand recovery in automotive and packaging segments.
Dividend Announcement: Steady Payout Policy
Hindalco’s Board has recommended a final dividend of Rs 3.50 per share for FY25. This is in line with last year’s payout, suggesting management’s intent to maintain shareholder trust during turbulent times.
The record date and payment schedule for the dividend will be announced shortly.
Key Business Highlights:
Aluminium India business saw a slight volume increase, but realizations were impacted by weak commodity pricing.
Copper business performed better with improved operational efficiency and value-added product sales.
Novelis, Hindalco’s US-based subsidiary, posted an EBITDA of $472 million, aided by higher shipments and better spreads in the automotive sector.
Capex guidance for FY26 remains intact at Rs 10,000 crore, largely directed toward brownfield expansions and sustainability projects.
Market Reaction & Sector Context:
Following the results, Hindalco shares traded largely flat, hovering around Rs 515– Rs 520 levels on NSE. The stock has remained range-bound in recent weeks amid mixed signals from global metal markets and concerns about Chinese demand recovery.
The broader metals and mining sector is also facing global uncertainties, including geopolitical disruptions, uneven industrial demand, and ESG transition costs.
What to Watch Going Forward:
Aluminium pricing trends and China’s construction recovery will be key to margin performance.
Progress on Novelis’ strategic expansion plans, especially in recycling and downstream aluminium, could influence long-term valuations.
Coal and power costs in India remain a key variable in Hindalco’s cost structure.
Sustainability initiatives, including carbon reduction and circular economy projects, are expected to gain investor attention.
Hindalco’s Q4FY25 results reflect a resilient performance amid industry-wide headwinds. While margins were under pressure, the company's global diversification and dividend continuity provide a balanced outlook. As always, investors are encouraged to assess long-term fundamentals and sector trends while tracking any future updates from the company.
Written by Indira Securities SEBI Registered with 30 plus years of experience in Stock Market!!!