National Aluminium Co. (NACL IN) – Q1FY27 Result Update – Execution delays; alumina spot pricing improved – ACCUMULATE
Published on 03 Aug 2026
National Aluminium (NACL) delivered strong operating performance with 81% YoY EBITDA growth aided by higher aluminum prices and well-controlled costs. Alumina volumes grew 14% YoY while metal volume remained flat YoY. RM and P&F inflation was negated by lower employee & other mfg expenses aided to keep metal CoP under control. Mgmt. guided for higher input costs to continue in Q2 however spot alumina prices have also improved by ~USD50/t. Aluminum NSR improved 12% QoQ to US$3,918/t with slight improvement in premium over LME, while alumina declined 7% QoQ to US$330/t. Commissioning of the 1mtpa alumina refinery has been delayed by a quarter and is now expected by end-Sep'26, with commercial production likely towards the end of CY26. Maintain ‘Accumulate’ with revised TP of INR 401 (from INR376, assigning same 5x EV/EBITDA multiple).
