National Aluminium's profit falls 16.68% as annual margin contracts
Sequential momentum improved, but higher costs, depreciation and a slightly higher tax rate weighed on the year-on-year comparison.
Filed 16 May 2026, 13:34 IST · after market close · National Aluminium Company Ltd (NATIONALUM)
Key takeaways
- Consolidated net profit fell 16.68% year on year to Rs 1,722.44 cr as revenue declined 4.84% while expenses rose 5.94%.
- Operating margin narrowed 5.41 percentage points year on year to 46.87%, despite improving 0.81 percentage points sequentially.
- The stock fell 7.85% on the reaction day, well beyond its 1.76% median move after the last eight results, although a corporate action overlapped the period.
Price around the results
Annual profit fell despite a sequential recovery
Consolidated revenue declined 4.84% year on year, while net profit fell 16.68% to Rs 1,722.44 cr. Sequentially, revenue grew 5.96% and net profit rose 7.98%, indicating a recovery from Q3FY26 levels. Higher depreciation, up 140.52% year on year, also reduced the conversion of operating profit into profit before tax.
Costs drove the year-on-year margin squeeze
Expenses grew 5.94% year on year against a 4.84% revenue decline, narrowing operating margin by 5.41 percentage points. The sequential picture was better: revenue grew faster than expenses, so margin expanded 0.81 percentage points. Lower interest expense helped sequentially, but the tax rate rose 0.67 percentage points and other income contributed 8.70% of profit before tax, making profit quality worth watching.
Margin has risen for three straight quarters
Operating margin improved from 39.20% in Q1FY26 to 44.87% in Q2FY26, 46.06% in Q3FY26 and 46.87% in Q4FY26. National Aluminium's margin was 28.10 percentage points above the 18.77% median for 51 reported Commodities peers. The contrast is clear: sequential operating momentum improved, but the year-on-year comparison remained weaker than Q4FY25.
The market reaction was unusually negative
The stock fell 7.85% on the reaction day and was down 7.24% after five sessions, with the move also 7.23% below the relevant market comparison after five sessions. That was far larger than the 1.76% median absolute move across the last eight result reactions, which were split evenly between four rises and four falls. A corporate action overlapped the reaction period, so the move cannot be attributed solely to the results.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,013 cr | ₹4,731 cr | +5.96% | -4.84% |
| Other income | ₹202 cr | ₹188 cr | +7.08% | +76.05% |
| Expenses | ₹2,663 cr | ₹2,552 cr | +4.38% | +5.94% |
| Operating profit | ₹2,349 cr | ₹2,179 cr | +7.81% | -14.68% |
| Operating margin (%) | 46.87% | 46.06% | — | — |
| Interest | ₹24 cr | ₹60 cr | -60.09% | -25.77% |
| Depreciation | ₹211 cr | ₹182 cr | +15.98% | +140.52% |
| Profit before tax | ₹2,316 cr | ₹2,126 cr | +8.95% | -15.73% |
| Tax | ₹594 cr | ₹531 cr | +11.87% | -12.87% |
| Net profit | ₹1,722 cr | ₹1,595 cr | +7.98% | -16.68% |
| EPS (₹) | ₹9.38 | ₹8.69 | +7.94% | -16.70% |
Operating margin of 46.87% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -7.85% | -7.10% |
| Next session | -5.89% | — |
| 5 sessions | -7.24% | -7.23% |
| 15 sessions | -5.55% | — |
| 30 sessions | -11.76% | — |
Volume on the results session was 1.42× its 20-day average.
What to watch
- Whether operating margin holds above 46.87% after three consecutive quarterly increases.
- Whether revenue growth continues to exceed expense growth after the Q4FY26 gap of 5.96% versus 4.38%.
- Whether other income remains near its 8.70% share of profit before tax.