NALCO profit jumps 91% as operating margin reaches 51.06%
Revenue growth far outpaced expenses, lifting operating profit 81.45% year on year; the results were filed after market close.
Filed 31 Jul 2026, 21:01 IST · after market close · National Aluminium Company Ltd (NATIONALUM)
Key takeaways
- National Aluminium’s consolidated net profit rose 90.87% year on year to Rs 2,003.14 cr as revenue grew 39.28% while expenses increased 12.10%.
- Operating margin expanded 11.86 percentage points year on year to 51.06%, with revenue growth outpacing costs.
- Profit quality was mostly operational, although other income contributed 6.47% of pre-tax profit and the tax rate fell 0.31 percentage points year on year.
Price around the results
Revenue momentum lifted consolidated profit
National Aluminium’s consolidated revenue increased 39.28% year on year and 5.78% sequentially to Rs 5,302.38 cr. Operating profit grew faster, rising 81.45% year on year and 15.24% from the previous quarter, while net profit increased 90.87% year on year and 16.30% sequentially. The results were filed after market close.
Costs supported a sharp margin expansion
Expenses rose 12.10% year on year even as revenue grew 39.28%, widening operating margin by 11.86 percentage points. Sequentially, expenses declined 2.57% while revenue rose 5.78%, adding 4.19 percentage points to margin. Interest expense fell 59.86% sequentially but was 18.78% higher year on year, and depreciation declined 13.65% sequentially.
Margin has risen for five straight quarters
Operating margin has climbed from 39.20% in Q1FY26 to 44.87% in Q2FY26, 46.06% in Q3FY26, 46.87% in Q4FY26 and 51.06% in Q1FY27. National Aluminium’s margin was 31.67 percentage points above the 19.39% median for the 41 commodities-sector peers that had reported the quarter. The 25.52% tax rate was 0.31 percentage points lower year on year, providing a modest additional lift to net profit.
Other income was helpful but not the main profit driver
Other income rose 59.50% year on year but accounted for 6.47% of pre-tax profit. This leaves the sharp increase in operating profit, rather than non-operating income, as the main explanation for the profit growth. The stock’s recent results-day history is evenly split, with four rises and four falls across eight events and a median absolute move of 4.05%; no market reaction was available because the filing came after close.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,302 cr | ₹5,013 cr | +5.78% | +39.28% |
| Other income | ₹174 cr | ₹202 cr | -13.63% | +59.50% |
| Expenses | ₹2,595 cr | ₹2,663 cr | -2.57% | +12.10% |
| Operating profit | ₹2,708 cr | ₹2,349 cr | +15.24% | +81.45% |
| Operating margin (%) | 51.06% | 46.87% | — | — |
| Interest | ₹10 cr | ₹24 cr | -59.86% | +18.78% |
| Depreciation | ₹182 cr | ₹211 cr | -13.65% | +2.25% |
| Profit before tax | ₹2,690 cr | ₹2,316 cr | +16.13% | +90.10% |
| Tax | ₹687 cr | ₹594 cr | +15.65% | +87.88% |
| Net profit | ₹2,003 cr | ₹1,722 cr | +16.30% | +90.87% |
| EPS (₹) | ₹10.91 | ₹9.38 | +16.31% | +91.07% |
Operating margin of 51.06% compares with a Commodities sector median of 19.39% across 41 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 51.06% after five consecutive quarters of expansion.
- Whether revenue growth continues to outpace the 12.10% year-on-year expense growth recorded this quarter.
- Whether other income remains near or below its 6.47% share of pre-tax profit.