NALCO share price jumps 4% as metal price breaks $3000 per ton at LME

Shares of National Aluminium Company (NALCO) jumped over 4% to ₹344.85 apiece, a fresh 52-week high, on the NSE in Tuesday's trading session after global aluminium prices rallied to a new record level.

Aluminium prices surged past $3,000-per-ton at LME amid constrained supply, with limits on smelting capacity in China and output curbs in Europe stemming from high power costs, tightening global inventories. Meanwhile, demand remains resilient, underpinned by steady consumption from the construction and renewable energy sectors, according to a Bloomberg report.

Since NALCO is a major aluminium producer in India, a rise in prices can improve the topline of the company.

NALCO Q2 results 2025

The PSU company had reported a net profit of ₹1,430 crore for the second quarter of the financial year, marking a 37% year-on-year (YoY) increase, aided by firm aluminium prices. Revenue from operations grew 7.2% to ₹4,293 crore.

Its board also declared the first interim dividend for FY26 at ₹4 per share, equivalent to 80% on the face value of ₹5, to be paid on the paid-up equity share capital of ₹918.32 crore.

The company attributed its strong Q2 FY26 performance to improved operational efficiency, cost-control initiatives, and favourable market conditions, including a rebound in global aluminium prices and steady domestic demand from the infrastructure and automotive segments.

“We have demonstrated resilience through operational excellence, cost-saving measures, and sustained productivity, supported by higher volumes and improved efficiency, despite lower sales realisation from metal prices. Going forward, we remain focused on value addition, sustainability, and expanding our production capacities to ensure long-term growth and value creation for all stakeholders," said Brijendra Pratap Singh, Chairman-cum-Managing Director, NALCO.

Brokerage firm Axis Securities said that Nalco’s timely expansion and ramp-up of the 5th stream Alumina refinery with a 1 MTPA capacity by FY27 will be crucial.

The capex for it has already undergone a cost overrun. The company has plans of ₹30,000 crore capex for the 0.5 MTPA smelter and 1,080 MW CPP. The capex will increase from FY28, and execution will be the key. It has guided a capital structure of a 70:30 leverage ratio for the expansion,” it said.

NALCO share price trend

NALCO shares have given healthy returns in the near term despite volatility in the Indian stock market. The PSU stock has gained nearly 9.15% in five sessions and 29% in a month.

The PSU stock has jumped 83% in just six months and multiplied investor money by giving multibagger returns of 620% in the last five years.

NALCO share price is listed on both BSE and NSE. The multibagger PSU stock hit a 52-week low of ₹140 on April 7, 2025.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.