NALCO stock hit an all-time high, up 12% in 4 sessions. What’s behind the wave?

Shares of National Aluminum Company Ltd (NALCO) rose as much as 7% to hit a new high of Rs 352, extending their rally for a fourth straight trading session. The latest move has sent the stock up 12% over the past four days. The increase comes after aluminum prices in global markets rose 2% to the highest level in more than three years, with LME prices breaching the $3,000 per tonne mark to trade at $3,082. The rally was driven by tight supply conditions, as a reduction in smelting capacity in China and production cuts in Europe due to higher electricity costs weighed on global supplies. At the same time, demand prospects remain strong, supported by continued demands from the construction and renewable energy sectors, Bloomberg said in a note.

Last month, CNBC TV-18 reported that Brijendra Pratak Singh, MD of NALCO, said: The global aluminum market is expected to enter a supply crunch in 2026 and 2027 as demand continues to rise across multiple sectors. “The demands from the EV sector, the construction sector and the energy sector are increasing, and now there are huge data centers.

NALCO Q2 Performance

Nalco’s net profit for the September quarter rose 36.7% year-on-year to Rs 1,430 crore, compared to Rs 1,046 crore in the same period last year, driven by higher realizations and improved operational efficiencies. Revenue rose 31.5% to Rs 4,292 crore from Rs 4,001 crore a year earlier.

Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at Rs 1,932.9 crore, up 24.8% from a year ago. Operating margins increased from 38.7% to 45%, underscoring stronger pricing power and cost discipline.

In a recent note following its second quarter results, Axis Securities highlighted that NALCO’s timely expansion and ramp-up of the 5th Stream Alumina refinery, with a planned capacity expansion of 1 million tonnes per annum (MTPA) by FY27, will be a key growth driver. The capital expenditure (capex) for this project has already resulted in cost overruns. Moreover, NALCO has outlined a capex plan of Rs 30,000 crore for its 0.5 MTPA smelter and 1,080 MW captive power plant (CPP), with capex expenditure expected to increase from FY28.

At around 1.15 am, the company’s shares were trading at Rs 350, 6% higher than the last close on the NSE. By 2025, NALCO stock delivered a return of almost 50%.

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