Synopsis:
Hindalco Industries Limited revealed a capital expenditure for a sum of $10 billion over the next five years in India to fuel the growth of its aluminum downstream, copper smelting, and battery materials divisions.
The stock of the world’s largest aluminium rolling and recycling company is gaining attention. It is engaged in the business of producing primary aluminium and copper, and is in focus after the announcement of $10 billion capex for expanding its aluminium downstream, copper smelting, and battery materials businesses.
With a market capitalization of Rs.1,58,350.82 crore, the shares of Hindalco Industries Limited closed at Rs.704.65,down by 0.40 percent from the previous day’s closing price of Rs.707.45.
CAPEX Plan
In August 2025, the company came up with a global investment of $10 billion for the next five years. These funds will be used for the expansion of aluminum, copper, and specialty alumina, both in India and through global Novelis operations.
The company initiated projects worth Rs.18,000 crore in its Indian operations during the year 2024-25, indicating the highest annual capital expenditure the company has achieved in a decade.
Hindalco is expanding capacity by upgrading its Aditya smelter by 180,000 tonnes per year, adding 360,000 tonnes at Mahan, and establishing a new greenfield refinery with 850,000-tonne capacity.
A 300,000-tonne expansion of the copper smelter at Dahej is underway.After completion, it will largest in the world. In electric mobility, the company is using top-tier facility to produce aluminum battery enclosures, to create vehicles that are lighter, safer, and more energy-efficient and plans to introduce aluminum cycle and e-cycle components.
Board of directors proposed a dividend of ₹5 per equity share for the FY2024-25. This recommendation aligns with the company’s policy, prioritizing the reinvestment of capital into strategic growth projects.
In Odisha, aluminium smelter , the company is expanding its e-waste recycling facility with 100 MW renewable energy. In FY2025, the company’s financial position was strong, with a net debt-to-EBITDA ratio of 1.02, indicating the ability to fund its growth.
The company reduced its long term debt by Rs. 10,765 crore, as a result, Non current debt reduction was Rs. 10,589 crore in non-current borrowings and repaying an additional Rs. 176 crore.
Shareholding and Financials
As of June 2025, promoters hold 34.65 percent, FIIs hold 27.70 percent stake in the company, DIIs hold 24.93 percent, gthe overnment hold stake of 0.35 percent, with public holding of 12.01 percent.
Revenue from operations soared from Rs.57,013 crore in Q1Y25 to Rs.64,232 crores in Q1FY26, accompanied by profits of Rs.3,074 crores in Q1FY25 to Rs.4,004 crores in Q1FY26.ROE is at 14 percent and ROCE is percent.
Hindalco Industries, the primary metals company of the Aditya Birla Group, holds a prominent global position as the largest aluminum rolling and recycling firm. It is also a significant producer of copper and ranks among Asia’s top manufacturers of primary aluminum.
In India, Hindalco’s aluminum operations span the entire value chain, from bauxite and coal mining to alumina refining, power generation, and aluminum smelting. This integrated process continues through to the creation of finished products like rolled aluminum, extrusions, and foil.
The company’s copper division in India includes a top-tier custom copper smelter and a dedicated jetty. This division is a major supplier of copper to the Indian Railways and provides more than half of India’s total copper needs.
Written by Jhanavi Sivakumar
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