Investment Rating - Industry rating: Recommended [8] Core Insights - In Q4 2025, the comprehensive revenue of the Indian aluminum industry increased by 14% year-on-year to 665.21 billion rupees, while the net profit after tax decreased by 45% to 20.49 billion rupees [2][6]. - Novelis reported a total shipment of flat-rolled products of 809,000 tons in Q4 2025, a decrease of 11% year-on-year and 14% quarter-on-quarter [2]. - The aluminum ingot total shipment was 345,000 tons, showing a year-on-year increase of 2% and a quarter-on-quarter increase of 1% [3]. - The aluminum products sales volume reached 108,000 tons, reflecting a year-on-year increase of 9% but a quarter-on-quarter decrease of 4% [4]. - Electrolytic copper sales were 122,000 tons, with a year-on-year increase of 2% and a quarter-on-quarter increase of 8% [5]. Financial Performance - In Q4 2025, the EBITDA was 85.43 billion rupees, a year-on-year increase of 5% but a quarter-on-quarter decrease of 12% [6]. - The revenue from operations for Q4 2025 was 665.21 billion rupees, with a year-on-year growth of 14% and a quarter-on-quarter growth of 1% [10]. - The net profit after tax for Q4 2025 was 20.49 billion rupees, a decrease of 45% year-on-year and 57% quarter-on-quarter [6][10]. Segment Performance - Novelis generated revenue of 4.2 billion USD in Q4 2025, a year-on-year increase of 3%, primarily due to rising metal prices [7]. - The aluminum ingot segment achieved a quarterly revenue of 106.2 billion rupees, a year-on-year increase of 6%, with an EBITDA of 48.32 billion rupees, up 14% [9]. - The aluminum products segment reported a revenue of 39.09 billion rupees, a year-on-year increase of 22%, with record EBITDA of 2.33 billion rupees, up 55% [9]. - The copper segment's revenue reached 182.33 billion rupees, a year-on-year increase of 33%, despite a decline in TC/RCs market [9].

Investment Rating - Industry rating: Recommended [7] Core Insights - The report highlights a 13% year-on-year increase in consolidated revenue for the Indian aluminum industry, reaching 642.32 billion INR in Q2 2025, while net profit rose by 30% to 40.04 billion INR [5][14] - Novelis reported a 13% increase in revenue to 4.72 billion USD in Q2 2025, driven by higher average aluminum prices, although adjusted EBITDA decreased by 17% due to rising scrap prices and tariffs [6] - The aluminum ingot segment saw a 6% increase in revenue to 93.31 billion INR, with EBITDA rising by 17% to 40.80 billion INR, benefiting from lower raw material costs [9] - The aluminum products segment achieved a record EBITDA of 2.29 billion INR, up 108% year-on-year, attributed to higher value-added products [10] - Copper revenue increased by 12% to 148.86 billion INR, with EBITDA at 6.73 billion INR, impacted by a significant drop in TC/RCs offset by rising sulfuric acid sales prices [11] Summary by Sections Production and Operations - Flat rolled products total shipments were 963,000 tons, a 1% increase year-on-year and quarter-on-quarter [1] - Aluminum ingot total shipments were 325,000 tons, a 1% decrease year-on-year and a 2% decrease quarter-on-quarter [2] - Downstream aluminum sales volume was 101,000 tons, a 6% increase year-on-year but a 4% decrease quarter-on-quarter [3] - Metal copper sales volume was 124,000 tons, a 1% increase year-on-year but an 8% decrease quarter-on-quarter [4] Financial Performance - Consolidated revenue for Q2 2025 was 642.32 billion INR, a 13% increase year-on-year but a 1% decrease quarter-on-quarter [5] - EBITDA for Q2 2025 was 86.73 billion INR, a 9% increase year-on-year but a 16% decrease quarter-on-quarter [5] - Net profit for Q2 2025 was 40.04 billion INR, a 30% increase year-on-year but a 24% decrease quarter-on-quarter [5] Segment Performance - Novelis revenue for Q2 2025 was 4.72 billion USD, a 13% increase year-on-year, with adjusted EBITDA of 416 million USD, down 17% [6] - Aluminum ingot revenue for Q2 2025 was 93.31 billion INR, with EBITDA of 40.80 billion INR, achieving a leading gross margin of 44% [9] - Aluminum products revenue reached 33.53 billion INR, with EBITDA of 2.29 billion INR, reflecting a significant increase in high-value products [10] - Copper revenue for Q2 2025 was 148.86 billion INR, with EBITDA of 6.73 billion INR [11]