National Aluminium Company Ltd (NATIONALUM) Q2 FY27 Results Analysis: PAT Jumps 28%, Margin Expands 66 bps
National Aluminium Company Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 5,419.44 Cr (+26.26% YoY) and PAT growth of +28.04% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 02, 2026 |
|---|---|
| Revenue (Q2) | Rs. 5,419.44 Cr (+26.26% YoY) |
| PAT (Q2) | Rs. 1,835.09 Cr (+28.04% YoY) |
| EBITDA margin | 49.06% (+66 bps YoY) |
| EPS (Q2) | Rs. 9.99 (+28.08% YoY) |
Quarter Snapshot
NALCO delivered 26.26% YoY revenue growth and 28.04% PAT growth with a 49.06% company-basis EBITDA margin (up 66 bps YoY), fully cash-backed earnings (CFO 1.14x PAT) and a zero-debt balance sheet with Rs.12,280.29 crore of liquid resources. Aluminium drove the quarter with a 73.05% YoY result increase, while chemicals remains depressed at a 16.66% margin but stabilized sequentially. No guidance beats are demonstrable against prior management targets, but execution on capex, cost control, and the Rs.4.50/share interim dividend was on plan.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Revenue "likely in-line to ahead YoY, flatter sequentially" | +26.26% YoY, +2.21% QoQ | Played out |
| "margins compressing QoQ from an exceptional base; coal the live headwind" | Company-basis margin 49.06% vs 54.33% in Q1 (−527 bps QoQ) | Played out |
| "the aluminium margin bridge down from 55.52%" | Aluminium margin 49.42% (vs 55.52% Q1) | Played out |
| Caustic guide "at risk to the downside vs market prints" | Filing discloses no input prices; chemicals margin −60 bps QoQ is the only proxy | Not observable |
| Capex "likely at or above the guided run-rate" | H1 capex Rs.646.32 crore (43.1% of the low end) | Partially |
| Zero-debt buffer: "cost swings act on a fully equity-funded, inventory-light buffer" | Borrowings nil; liquid resources Rs.12,280.29 crore | Played out |
| Watch items: metal-cost bridge, caustic actual, alumina realization ($330 NSR per broker est. cited pre-call), expansion milestones | None addressed in the filing — remain open for the call | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 capex Rs.1,500–1,800 crore | Q1 FY27 earnings call (03 Aug 2026) | H1 FY27 capex Rs.646.32 crore (43.1% of the Rs.1,500 low end) | On Track |
| Interim dividend (2 Nov Board agenda) | Board outcomes, 2 Nov 2026 | Rs.4.50/share, Rs.826.48 crore | Met |
| Employee cost ratio declining (18%→16%), to continue into FY27 | Q1 FY27 earnings call (03 Aug 2026) | Employee cost −7.38% YoY, +3.13% QoQ; 7.53% of revenue vs 10.26% a year ago | Confirmed |
| Caustic/coal cost push into Q2 | Q1 FY27 earnings call (03 Aug 2026) | Raw materials +10.96% QoQ vs revenue +2.21%; aluminium margin −610 bps QoQ — direction | Confirmed |
| Alumina oversupply pressuring chemicals | Management commentary across prior concalls | Chemicals margin 16.66% vs 34.01% YoY — but stabilized QoQ — level), stabilizing sequentially | Confirmed |
Key Investment Insights
Key Positives
- Revenue grew 26.26% YoY to Rs.5,419.44 crore, with the Aluminium segment up 44.58% YoY to Rs.4,164.54 crore
- Standalone PAT grew 28.04% YoY to Rs.1,835.09 crore; EPS Rs.9.99 vs Rs.7.80 YoY
- Company-basis EBITDA margin expanded 66 bps YoY to 49.06%; aluminium segment margin up 813 bps YoY to 49.42%
- H1 operating cash flow of Rs.4,371.39 crore was 1.14x PAT, up 60.7% YoY; FCF of Rs.3,725.07 crore
- Zero borrowings; liquid resources of Rs.12,280.29 crore, up from Rs.8,700.67 crore at 31-03-2026; net worth up 15.05% YTD
- Interim dividend of Rs.4.50/share (Rs.826.48 crore) declared, a 45.04% payout of standalone Q2 PAT
- Employee costs fell 7.38% YoY to 7.53% of revenue vs 10.26% a year ago
- No exceptional items; effective tax rate 25.75% with deferred share of only 1.47%
Risk Factors
- Chemicals segment result fell 54.80% YoY with margin down to 16.66% from 34.01%, on alumina oversupply
- Raw material costs rose 10.96% QoQ vs revenue +2.21%, consistent with caustic-soda inflation
- EBITDA margin compressed 527 bps QoQ (company basis) against the record Q1 FY27 base
- Auditors' emphasis of matter on non-recognition of revenue from two Rajasthan wind power plants, sub-judice before the Rajasthan High Court since 2019
- Aluminium segment margin fell 610 bps QoQ to 49.42% on coal/metal-cost push
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Related
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.