NALCO Share Price Surges 9%
NALCO shares rose about 9% after it reported a 37% jump in net profit to ₹1,430 crore in Q2 FY26. Revenue increased 7% due to higher aluminium and chemical sales.
MARKET NEWS
11/10/20252 min read
Due to the company's impressive Q2 FY26 results and favorable mood in the Indian market after its good financial performance, NALCO's shares increased by almost 9% on November 10.
Details of the Rally
Following the release of its Q2 results for FY2025–2026, National Aluminium Company Limited (NALCO), a state-owned PSU, saw a surge. For the quarter that ended in September 2025, NALCO's consolidated net profit increased by an astounding 37% year over year to ₹1,429.94 crore. Additionally, the company's operations revenue increased 7.27% year over year to ₹4,292.34 crore, highlighting increased operational effectiveness and greater realizations in the chemicals and aluminium divisions.
Key Drivers Behind the Surge
Strong earnings growth: Net profit grew by 37% over the year, reflecting efficient operations and higher sales volumes.
Cost optimization: NALCO’s expenses declined, especially in fuel and employee benefits, bolstering EBITDA margins.
Higher commodity prices: Aluminium and alumina prices rebounded globally, benefitting Indian producers; NALCO leveraged these trends effectively.
Resilient operations: Improved output, productivity, and strategic expansion plans helped sustain momentum, with management emphasizing ongoing capacity expansion and sustainability.
Dividend announcement: The company fixed November 14, 2025, as the record date for the first interim dividend, further supporting investor sentiment.
Market Inputs
NALCO shares had an intraday increase of over 7.5% on the day of the announcement, reaching as high as ₹252.40. Some reports reported that the increase was close to 9%. The stock has increased by almost 48% over the last six months, indicating continued investor confidence in the face of robust data and positive sector tailwinds.
In order to position the company as a major beneficiary of the growth in both domestic and international aluminium demand, NALCO's management reiterated its ambition for long-term growth through continued expansions, such as a new alumina refinery stream and further bauxite mining operations.
Outlook
With a driven staff and a solid capital allocation for future expansions, NALCO is well-positioned to provide more growth in the face of supply restrictions and rising prices in the global aluminum market. Regarding the company's future in the non-ferrous metals industry, analysts are nonetheless upbeat.