Thank you. Good evening, everyone.

On behalf of Systematix Group, we welcome you to the 3Q FY26 and nine months FY26 earnings conference call of National Aluminium Company Limited. I would like to thank the management for giving us the opportunity to host this call.

I now hand over to Mr. Bharat Sahu, Company Secretary, NALCO, to discuss the company's financial and operational performance for the third quarter and nine months FY26.

Over to you, sir.

Thank you, ma'am. Namaskar.

Good evening. Warm greetings from National Aluminium Company Limited, Navratna CPSE under the Ministry of Mines.

I take pleasure in introducing the NALCO team in today's post-earning call. The team is headed by Shri Brijendra Pratap Singh, Chairman-cum-Managing Director; Shri P.

K. Sharma, Director (Production); Dr.

Tapas Kumar Pattnaik, Director (HR); Shri Abhay Kumar Behuria, Director (Finance); and Shri A. K.

Singh, our newly inducted Director (Commercial). Today, NALCO registered a landmark result for the quarter and nine months ended December 2025, after the Board took note of the results in the Board meeting held today.

A presentation in this regard is already uploaded in the website and also in the stock exchanges, NSE and BSE. Now, I will request our CMD, sir, to kindly highlight the results and outlook of the company in the coming days.

Over to you, sir.

Good evening. Good evening to all.

Today, we have declared our results, Q3 and up to Q3 results. As far as our performance, physical and financial performance, both, we have recorded best-ever physical performance in Q3 and also up to Q3.

Also best-ever financial performance up to Q3 and also physical performance. If you see the growth, as compared to 2024-2025, the growth which we have recorded up to Q3, that is nine months 2024-2025, if we compare with this year 2025-2026 nine months, income side, we have a growth of 13%, and expenditure, in spite of our increase in income by 13%, our expenditure has increased by only 6%.

EBITDA margin has increased by around 20%, and PBT has increased by 25%. This is the nine months comparison.

Volumes of production has increased by 20% in alumina and metal by 3.5%. Sales of alumina has increased by 45% and metal by around 5%.

This is the first nine months performance if we see. If you see quarter-to-quarter performance, our volumes has increased by around 4% to 5% in terms of hydrate production, metal production, and our metals our alumina sales and metal sales have also increased by around 20% and 5%.

There has been a strong both physical and financial performance, and main reason of this physical and financial performance has been the increase in the volume of production. We have increased the volumes of production.

If we see the increase in the revenues, our revenues has increased by around ₹2,000 crores, nine months revenue as compared to previous nine months last year. Out of that ₹2,000 crores, the contribution of alumina is around ₹1,600 crores and metal around ₹410 crores.

Price has a negative impact of around ₹871 crores, where alumina prices fell by from around $562 to around $385 this year average. There was a negative impact of ₹1,652 crores, but metal prices has increased, which has given us a positive impact of ₹781 crores, that is increased from $2,538 to $2,867.

We have increased our revenues, and our expenditure has not increased that much, and that has increased by only ₹500 crores. That is this is the nine months figure total.

We have saved in power and fuel. The power which we imported last year was on the lower side.

The saving in the power and fuel was around ₹142 crores. Employee cost has also gone down by around ₹118 crores.

The performance, nine months performance has been very good. Quarter quarter if we compare, the quarter results, Q3 Q3, this year Q3 and last year Q3 if we compare, the income has increased by around ₹200 crores, and the expenditure has not increased that much, only around ₹60-₹70 crores expenditure increase has been there.

The profitability has increased from 2,121 to 2,131. That is the PAT.

The main contribution and the main the contributing factor has the increase in the volume of production. In spite of reduction in the prices of alumina, our profitability we were able to maintain because of increase in volume and better efficiencies, that is the improvement in techno-economic factors, that is caustic soda consumption, CP coke consumption.

Of course, some techno-economics were not very good, but these two major techno-economics have been there. We are working on that, and further we are working on increasing the volumes of production, maximizing our efficiencies, which is in our hand, and operating the plant in a proper manner so as to maximize our profitability.

Thank you.

Thanks. I may now invite questions from our esteemed participants.

Thanks for the opportunity, and congratulations on a good set of numbers. My first question is on alumina contracts.

Operator, your line is echoing. Can you please check?

In fact, we have muted ourselves.

Sure. My first question is on alumina contracts.

In Q3, how much alumina shipments were linked to LME and how much were spot sales, and what is the spot versus contract mix in Q4?

Okay. That is the only question?

Some other question?

Yeah. That was the first question.

Okay. You want me to answer it?

Yes, please.

Q3, each month we have done around four shipments all the months, and we had three shipments in spot and one shipment in LME in Q3.

Okay. All were of same quantity?

Yes, yes. Three shipments All shipments are of 30,000 tons.

On an average, we do four shipments per month. We have done almost on an average four shipments.

Out of which, one one was one was on term basis, that was on basis of LME, and all rest of the three was spot.

For Q4, is it going to be the same mix, 75-25?

Almost same mix. One shipment we have for LME, and the rest is for spot.

Right. As a follow-up to this, have we started signing long-term contracts for the new refinery?

New refinery, we will be starting the commissioning process in June and taking around two, three months to finally three, four months to stabilize it. We are expecting that around 3 lakh tons of alumina will be producing from there from this year onwards.

We are trying to have some long-term contract, one year or maybe two years. We'll be going in.

Some interested parties are also there. Middle East, some parties have approached us for long-term contract, that is one year, two year, three year.

We will be floating some tenders. If we get better offers, we will be going for it.

It totally depends on what offer we are getting.

Right. Got it.

My second question is on critical minerals. There were some news articles indicating that we are looking to extract critical minerals from alumina red mud that we end up producing.

What is the plan there, if you could indicate any sort of timelines for feasibility of this project?

As far as extraction of critical minerals from red mud is concerned, we are having one MoU with NML, Jamshedpur, where they are in the process of setting up a pilot facilities for making the methodologies for extraction of rare earth from the critical minerals. Already, they will be taking around 1.5 to 2 years to set up this whole technology.

The another is we have one party from Chennai, in which we have done the MoU. They have set up their reactor in our mines, and they have taken some of the samples of red mud.

They are into the process. Already, they are doing some experiments and all that, but results have not come till now.

They will be extracting some critical minerals. The third is not from red mud, that is from Bayer's liquor.

We are having one MoU with BARC, where they are setting up pilot plant. That is extraction of gallium from the Bayer's liquor.

These are the three projects which we are taking, but as of now, on commercial scale, we don't have any results. It's on the pilot scale.

It will take around 1.5 years to set up and get some results for the commercial-scale extraction.

Right. Okay.

Fine. Thank you so much.

Yeah. Thank you for this opportunity.

Sir, my question is with respect to our alumina sales volume. In the last call, we have said that for full year fiscal '26, we will achieve 1,300 kt.

Far in the nine months, we are already at 1,100. Are we going to raise this guidance of sales volume for alumina?

In Q3, we have seen a very good jump in alumina sales.

In Q3, the sales was better, and our target of around maybe 12 lakh 50,000 or 13 lakh, whatever we are targeting. This month, January, it has affected.

There is a tension in Middle East, which is affecting our exports to Middle East. This month, January, it was on slightly lower side.

February and March, we will be trying to make up those losses whatever done. As per plan, maybe 12 lakh 50 or 13, we will be able to reach.

Okay. Understood.

The second question is with respect to the alumina division profitability. Means we have seen a drop in that.

One part may be due to because of the fall in the alumina prices, but apart from the decline in alumina sales realization, is there any inflation from the cost side, especially with respect to caustic soda, which has led to the drop in the EBITDA per ton for the chemicals division?

As far as alumina sales are concerned and the margins from alumina is concerned, of course there has been reduction in the sales prices. From around $580, it's gone down to around $380, first nine months if we compare.

Caustic soda, we have improved on caustic soda consumption. The specific consumption caustic soda, which last year was around 121 kg, has come down to around 99 kg.

There, we have got a saving. Of course, the prices have increased from around 39 to, I think, 45.

45,

and the

impact is around ₹82 crore

negative. ₹82 crore negative, but overall impact is not there.

There is a saving in ₹129 crore. Efficiency.

Because we have saved on the efficiency, we have improved our performance. There is a saving of around ₹129 crore on caustic soda.

That is the thing which we have negated the increase in the prices by reducing our consumption. Of course, the prices of alumina which has gone down, that is only affecting us.

Understood, sir. Yes.

I will get back in the queue. Thank you.

Yeah. Thank you very much, sir.

Many, many congratulations for what is a record quarter. It looks like this records will continue given where the LME prices are.

Sir, my first question is, what would be the blended alumina realization for the company? If we just do the math of segment revenue divided by production volume, it comes to around 28,864.

Would that broadly be correct?

You are talking about realization?

Yes, sir.

Alumina realization. Yes, yes.

Realization, whatever we will be getting, that will be anywhere around $320 or $310 average in Q4.

At this point of time, sir, it looks like this should be the realization trend which will continue in fourth quarter as well? The

similar will be continuing in the fourth quarter. We are expecting not more than $310 or $320.

Understood. Sir, what is aluminium cost of production this quarter, and how did it change versus the September quarter?

Our alumina cost if you take calcined alumina Alumina?

Aluminium cost.

You are talking about aluminium or alumina?

Aluminium. Aluminium, sir.

Aluminium.

Our cost range ₹1,52,000, ₹1,60,000. In between that, ₹10,000 range, somewhere it is ₹1,55,000, ₹1,56,000, somewhere it is ₹1,53,000.

Average cost is coming around within that range only.

Understood. Sir, what is the outlook for cost?

We expect that to remain stable or move higher or lower?

Q4, our cost will increase slightly because our CT pitch, our CP coke cost has gone up. Caustic soda costs have whatever we have tendered and ordered in December, that costs have gone up.

Q4 cost will slightly go up. Still to calculate, it will overall depend on the efficiencies and our specific consumptions.

The prices have been around I think ₹7,000-₹8,000.

Which one now?

CP coke,

CP pitch.

Though there is a negative impact on price, because we are going to bear that burden, we are improving our techno-economic front also to take care of that additional cost which will be coming in the fourth quarter through increase in price of input prices. There will be not much impact on our total cost.

Understood. Sir, my last question is there is a meaningful decline in employee cost on a quarter-on-quarter basis.

What drove it, and when would you need to start making provisions for the next series of wage hike?

There are two aspects for this cost reduction. If you compare with the corresponding period of last year, last year around ₹300 300 numbers of employees have been superannuated.

The recruitment of this year is not commensurate with that return. That is one of the advantage.

Second, we have made some accounting provision towards our PRP, which is not required now because we have calculated actual calculation, and whatever excess provision we have made, we have withdrawn this quarter, this quarter three. There is also around ₹50 crore that is impact, okay?

Another ₹118 crore is total reduction of employee cost if you compare with the corresponding period of last year. ₹50 crore on account of that accounting provision and another because of reduction in the manpower real cost, that is superannuation of the manpower.

Got it. Sir, about the provisions that you will need to make for the next wage bill, when should we expect, June 2026 quarter or later?

That is for ours, I think it will be from 1st January 2027. Then we'll make it because this is the 26th.

This year we don't require because our pay revision due on 1st January 2027.

Got it. Thank you very much, sir.

Good evening, sir, and congratulations on the good results. Sir, first question was a clarification on the aluminium CoP.

This figure of ₹1,52,000 to ₹1,60,000, this is on an integrated basis, right, with captive alumina, just to clarify?

Pardon? Yes, yes.

It's on basis of the captive alumina. Manufacturing cost, what

we are transferring the alumina to our smelter plant on cost.

On cost. Okay.

All right. The second one was on how has been the trend of domestic premiums?

I think we sell most of our aluminium in the domestic market. How has the movement in physical premiums been on the third quarter?

The premium is actually totally depends on the LME. This year, last year our average LME was around 2,500, but this year average LME we are getting is around 28.

More than 28. There has been a $300 around $300 to $340 increase in the LME, which is giving us the better premium.

As far as the premium from ingot to wire rod is concerned, last year we were getting better. Ingot to wire rod premium last year was around 10,000.

Now we are getting around 6,000 to 7,000 only. Overall, there is increase in LME.

That is giving us a better premium.

What is the right way to look at this, sir? Is it linked to the MJP or is it a percentage of the LME, or is it on a per-ton basis?

What is the right way to look at the premiums?

Right way to look it is that as on the basis of LME, because our all whatever we are doing is on the basis of LME.

Sure, sir.

On the basis of whatever MJP is there, sometimes we have to give some discounts and all that depending on MJP.

We have a pricing policy where we take LME as a base, and we add premium as per our custom. We take sometimes MJP premium.

Then there is some modalities, fixations of price. All factors is being taken care of while we do price.

Our pricing mechanism every 3 days if the LME prices is crosses some limit, we do. There is a transparency policy we have.

We're adopting that trail.

Okay. Probably the import duty also of 7.5%?

See, that is a part of our policy, that policy guideline is there. We'll go by that only.

Okay. Sure, sir.

Also, sir, can we look at any more savings on power and fuel for the fourth quarter, or captive coal now we've fully reached the 4 million ton of captive coal production?

Production already we have targeted 4 million ton, which will be reaching. We are going by that rate.

That is, as compared to last year, the savings will be there. The reduction in the procurement of coal from e-auction and the linkage coal, there will be reduction.

We are looking after that up to Q3, the saving has been around maybe ₹40 crores or something like that. Q4 also, some savings will be there because the effect is going down because the prices of linkage coal has also come down.

The difference at present if you see, the price difference between linkage coal and our captive coal is around ₹200

to

₹250.

Because after withdrawal of that GST compensation cess, ₹400 per ton, which is not being paid on the linkage coal, our difference between the captive coal and FSA coal, fuel supply agreement, is around ₹300, ₹200 to ₹300.

Sure, sir. Okay.

Yeah. Thank you so much.

Okay.

Can you hear me now?

Yes, yes.

Sir, congratulations for good numbers. Sir, you just now mentioned about the coal mining.

When we are having our own mines, when we are mining from our own mines, is that cheaper or taking from outside is cheaper?

Our own captive mines, landed cost at our power plant, the difference between that coal and the coal which we are taking from outside is around ₹200 to ₹250, depending on the source.

Which one is higher, sir?

The coal which we are taking from outside. Our captive coal is cheaper by around ₹200.

Then why can't we have our own mines, sir?

We have

already our

mines, and the rated capacity of the mines is 4 million ton. We are ramping the production of that mines up to 4 million ton this year.

We are in the process maybe some more mines in the coming times when we are going for expansion. We will be

Yeah. That's what I meant.

Yeah. Okay.

Acha, sir, you said about red mud, some critical minerals. That is right.

Do we have any plan for new mining for the critical minerals, new mines?

New mines for the critical mineral, whatever there is, that is one JV company, KABIL, is there, JV of HCL and MECL, which is having five mines in Argentina they have got. They have done

non-invasive

exploration. Now invasive exploration is going on.

Maybe it will take 1.5 years to get the results of this exploration. When we'll come to know the amount of lithium, that is a lithium mine,

and

what level of commercial mining will be able to do. Already, mine

is not There we will have our partnership.

Yes. NALCO is around 40% share,

and

HCL and MECL is 30%, KABIL.

Sir, abhi aapne jaise bola alumina prices had gone down. When aluminium prices are high, why should alumina price go down, sir?

You see, there is an excess of alumina in the market. In Indonesia, two refineries have come up.

Few

smelters

have closed down, like Mozal one closed down, Iceland one smelter. Smelting capacity has gone down, and refining capacity has come up more.

There is an excess of alumina in the market. That's why there is the price reduction.

The prices of alumina solely depend on demand, supply.

Correct, sir. This is going to remain forever?

Yes, yes, I don't know forever, but this year it's going to remain. If the smelting capacity increases somewhere, but in of course in Indonesia, the smelting capacity new is supposed to come up maybe next year.

It will stabilize. That maybe some reduction in They are now presently having excess of alumina.

Some with thing will be taken care. Now as of now this year, their visibility is not there.

The similar kind of prices will be there. Another main reason is, in addition to CMD sir, China, their capacity of smelting is around 60 million plus.

Now they are capping that into a capacity 45. That is one of the reason when they will increase their production, automatically falls.

That beside

China is also having the excess of alumina. Ji.

To apna metal ka capacity kyu nahi badha rahe hai, sir?

Already already we are into process of it. We are already in the process of appointing one consultant for making DPR, and our road map is maybe this year by maybe this year June, July, August, we'll be finalizing the DPR.

After that, maybe 36 months, our we have made our road map. Maybe by end of December 30 or maybe early first half of 31, that 2031, we have to make add another 0.5 million ton capacity smelting capacity.

That is the road map, and we are going ahead with it very aggressively.

Sir, only one question. Finance cost, why it has gone up so high, sir?

Which one?

Finance cost.

No. That is not the finance cost.

Actually, that is the one thing we have made some settlement this quarter. That is the arbitration settlement,

okay?

The interest component was there. As per Ind AS, the interest component of the settlement will be put under finance cost because really it is an accounting adjustment only, okay?

Right. Thank you, sir.

Thank you very much.

Yes, hi. A very good evening, and thank you so much for the opportunity.

Congratulations on the results. My first question is, if we take a look at slide nine where the company has mentioned the LME price trend, I just wanted to get an outlook because it's mentioned that LME prices are expected to average around $2,670 for aluminium for this particular year.

What's the management's view on the aluminium pricing trend going ahead?

You see, as of now, the LME is somewhere around 32, $3,200. We were expecting to remain somewhere around $2,900, $3,000, but it has increased.

The main reason which we are seeing is some reduction in supply. Some smelters closing down, capacities of China's capacity cap and all that.

There is a, of course, demand-supply issue. We are expecting this year maybe this quarter, it will be somewhere around 3,000.

It should remain 3,000 LME. Next year also, somewhere in between 2,900, 3,000, 2,800, 2,900.

Average 2,900, we can expect that. It obviously, it will be more than 2,600.

Got it. Sure.

Thank you so much. Second question is, sir, on the caustic soda, we have had savings of round about ₹129 crores.

Could you give what was the landed costing for caustic soda on a per-ton basis? You mentioned 45,000, right?

Landed cost of caustic soda was

in nine months average if you see, 2025-2026, it was around 42,000,

okay?

For the next quarter, we have projected the cost will go up to 45,000,

fourth quarter of this year.

Got it. Sure.

Thank you so much, sir. I'll join back the queue.

Good evening, sir, and thank you for taking my question. Sir, my first question pertains to our alumina input to aluminium output ratio.

Has it changed? Because if I just calculate 2 ton of alumina per ton of aluminium, we have sold almost 80, 85 kt higher than what would have been the residue left after the aluminium production.

Could you just give us some insights into it?

You see, our volumes of production of alumina has been on the higher side. That's why we have increased our alumina exports.

Aluminium, we are making around 2 tons of alumina is required, 1 ton of alumina per ton of aluminium. As per requirement, is sent to the smelters.

Whatever exports we are doing is because of the excess in the production and the volume of the alumina.

It is still 2 ton of alumina per ton of aluminium, right?

Yes. 1.92.

Around 1.92,

1.93,

1.93.

Noted, sir. Because there was some additional 80 kt you have sold it over if you would have used this ratio.

Fine.

Actually, what is happening is we have a storage capacity of around 75,000 ton in Vizag, around 40 45,000 tons in our refinery, and around 1 lakh tons in our smelters. What storage we have, that keeps on changing.

That determines the overall ratio. That is very important to see what was the storage capacity at the beginning of the year and what is the storage now, okay?

Can I assume that we have depleted our storage capacity to a larger extent, because that's 50 to 80 kt additional, which would have come from there itself?

No. That storage capacity almost whatever we had in the beginning of year, our stocks of alumina in the smelter, of course in the beginning of year, the stock was somewhere around 15 days.

Now we are nearing around 10 to 12 days. 2, 3 days lesser stock in smelter is there.

As far as our Damanjodi, all the silos are full. Vizag also, our stock is around

60,000,

60,000, 65,000, that is the average we maintain in the Vizag. Only in our smelter around 2, 3 days stock means that will be around maybe around 7,000 to 8,000.

Now 7,000 to 8,000. 8 to 10,000 stock has depleted.

Noted, sir. Sir, my second question pertains to basically just clarification on the statement which we have made that from the new alumina refinery, we said we are expecting a 3 lakh kind of the production next year.

In our previous call, we were talking about roughly about 5 lakh.

Yes. Previously, we were telling

Has anything changed, or timeline or it has been delayed something?

We'll be starting the commissioning. The total refinery capacity is around 10 lakhs.

Since we'll be starting the commissioning in June, but it takes 2, 3 months to complete the commissioning process, stabilize the production. Maybe after June, September, October, we'll be going to 60% level of the total rated capacity.

Full capacity will be going to by around December. That's why we are taking a more realistic figure of 3 lakhs.

We can have somewhere in between 3 to 5 lakhs, but to be more realistic, it will be around maybe 3 lakhs.

Noted. Sir, lastly, on our overall capex for this year and next year, and also what kind of employee cost addition we are expecting from next year due to wage revision?

Any provision which we have started to make or we will make in 4Q?

This year, we are not having any wage revision. Whatever wage revision will happen, that will happen '27 onwards.

The employee cost will be almost same this year also. Slightly reduction will be there due to retirement.

We'll be having around 200

200

to 250 superannuations. Whatever superannuations are happening is in the senior category people.

Of course, there will be again reduction of around maybe ₹100 crores or maybe ₹70, ₹80 crores of reduction in employee cost if you see nine months or 12 months figure. There will be not any increase due to wage revision impact, that will come from next year onwards.

Yeah. On the next year, on the what kind of wage revision or just can tell me what is the percentage of last time you have given the hike?

Is that hike has something to do with your profitability levels as well? If you have a higher profitability, probably a higher wage hike you have to give, or it is non-impacted by the profitability?

Because wage revision is due from CPSE, it is from 1st January 2027 onwards, okay? Next fiscal 2026-2027, the impact will be all of 3 months.

We'll be making provision of some guidelines when the Government of India will form a committee for finalization of this wage agreement. Then we'll make some ad hoc provision for 3 months only.

That provision will not be enough because our retirement and superannuation for 2026-2027 will be to a great extent, and the high wage people will be retired, and the induction will be at the lower level. Overall, there will be no increase in the employee cost.

Noted, sir. Sir, capex figure for this year and next year, if any?

Capex for this year will be around 1,700. This financial year what we are expecting is 1,700.

Next year, we are targeting around ₹1,800 crores, ₹1,800 to ₹2,000 crores next year. But '27 onwards, from next financial year onwards, it will increase.

On the new smelting facility.

As this year now we do the ordering and all that by next year, April, May. So '27-'28, that will increase.

Noted, sir. Thank you, sir, and all the best for future.

Good evening, sir, and congratulations on a very good achievement. Sir, my first question was, if you look at the alumina sales and if you extrapolate the revenue, the average realization for the quarter comes out to be about $380.

That you are saying for fourth quarter will become between $310 to $320, is that correct?

Fourth quarter will be average 320.

This quarter is 380.

No, that was first nine months was 380.

Q3 if you see, it was

349.

349. Q3 was 349.

349. 380 was for nine months.

Nine months.

Okay, $350. Right.

What was the average exchange rate for the quarter?

Q3? Q3 exchange rate?

Q3 exchange rate was average 87. Nine months it was 87, Q3 89.

Okay. My second question is on the power and fuel, we've seen a reduction this quarter.

Which will normalize, or which will remain what do you envisage as the annual power and fuel cost now that we're getting the coal from our blocks? What should be annual cost of power and fuel stabilize at?

The coming quarter, I think the fourth quarter, the power and fuel cost will be less than the third quarter, because third quarter there was some problem, we have imported some power. That has added a cost.

That will not happen in the next quarter because all our boiler is in the good shape, and we'll be managing maximum power through our internal generation only. Our

import from

grid will be less amount.

Third quarter itself there's a fall of ₹70 crores. You're saying a further fall on that?

Pardon?

Third quarter itself there's a fall of about ₹70 crores from 2Q. You're saying further fall on that.

Q2

there is a reduction in ₹70 crores, he's saying.

Q2 to Q3 of current fiscal, as compared to last year.

Q3 over Q2, last Q2.

Last Q2,

because our internal captive that is one reason is there. Because the Q3, there is no impact of that cess, ₹400 coal cess, GST compensation cess.

It has been withdrawn. That benefit we have got in the third quarter because the withdrawal is July, September onwards, but that benefit in the third quarter we have got because that is linkage coal.

That is one of the major reason. Right.

Why is there a sharp jump in the operating expenses from ₹600 crores to ₹725 crores? How should we look at this going forward?

Operating expenses if you see, that is increasing because of increase in the volumes. When volumes are increasing, there will be increase in the consumption of raw material and all that.

That's because of the increase in volume, this operating expenditure has increased.

If you compare with the revenue, the jump is not in that extent because revenue has increased 13%, but our cost as expenditure is only 6% in totality. When you are increasing your volume, raw material consumption and other direct variable cost will automatically increase.

You see, last year our alumina production was 22 20 lakh 50,000. This year our average alumina production rate is going to around 22 lakh 50,000.

Maybe we will be reaching 23 lakhs. We will be doing around 2.5 lakh more alumina this year.

Of course, the raw material consumption and all that increases. Even metal production also will be around 10 to 12,000 more as compared to last year.

What is the LME premium, my last question, that you have got this year this quarter on the metal?

This quarter LME, means Q3 you are telling?

Q3, yeah. Q3,

average LME was around 28. 28.

Around $2,800.

Premium you are telling.

Premium you are

telling? Ha, premium.

Premium we don't revise regularly because we have a pricing policy. We fix the premium once, and that is inbuilt in our pricing policy itself.

We don't regularly revise that premium.

We fix it for once. Once it's fixed after

There is a policy mechanism. If you

go Premium abhi hamara current premium kitna hai? I think it is 60.

Is around $60, average 60. Quarter

last quarter mein premium each year got around $60. That is being part of our pricing policy.

That is part of pricing. Theek hai.

Thank you. Thank you.

Good evening. Thanks for the chance.

First question is on alumina division. You said one shipment is sold, prices are fixed on LME.

Is this as a percentage of aluminium LME we are selling alumina, or this is other Australia alumina FOB price index we are talking about? Percentage of

LME. Whatever LME along with one shipment which we are doing, that is percentage of LME.

Some shipments are on around 12%, some is around 11.5%. Depend on the whatever tender prices we are getting.

Understood. For FY27, also it is same ratio?

Yes. It's almost same.

Whatever now in term tender we are going, it is going on the lower side because LME is increasing. LME is going to around 32, 33 it has gone, maybe 30 more than 3,000.

The percentage is going down.

Also for the LME linked volume, we are selling in the same proportion, 1/4 on LME linked and

Almost average one shipment we try to do on term and rest three shipments on spot.

Understood. Sir, we have also started selling in the domestic market.

What is the realization difference between domestic and exports in alumina division?

Realization if you see domestic and export is almost same, not more.

There is a difference, hardly any difference of ₹1,000-₹2,000 because of addition of that export incentive that we added. Export price, we added some additional incentive which would have got had it this quantity exported.

The price difference is not much. There is around ₹2,000,

₹1,000 to

₹1,500.

Understood. Sir, when we are targeting 1.3 million ton volume for this year, we've sold 1.1 so far.

Fourth quarter would be just 200,000 tons, right? Or we can actually destock more?

No, that will be around whatever we have planned, not more than that. Around maybe 12.5 to 13.

Totally depend on whatever the requirements are there, because the disturbance in the Middle East that has affected our exports to Middle East in the month of January. We could do only two shipments.

We are trying to increase the shipment in February and March, make up that. It will be totally dependent how the conditions are there in Middle East.

Understood. Sir, with respect to aluminium division, can we practically sell or produce more than 470,000 tons?

Can we operate at more than 100% utilization?

You see, our rated capacity is 460, and we are going for 470 now. 472 in fact, this year we are trying to reach 472.

One one one area where we are exploring is getting some scraps. If we get some good quality scrap, because our hot metal production capacity is 4,70,000, but our casting capacity is more.

We have got additional maybe 50,000, 1 lakh tons of casting capacity. We can easily increase the cast metal production capacity if we get good quality scrap.

We're trying to source the scrap, but now we're not able to get good quality scrap. That's why if you get good quality, maybe 10,000, 20,000 tons of scrap, we'll be able to increase our cast metal production capacity.

Understood. Sir, on the aluminium division, few companies are hedging volumes on forward basis.

Are we doing anything of that sort, or everything is open to spot prices?

Hedging, you are talking about hedging?

Yeah.

Forward sales. No.

We are not adopted hedging mechanism now because we don't think our model of business if you see, and alumina and metal, both. This hedging, we don't feel this is required now, but we don't have any commitment.

Our balance sheet is so strong. We don't have any cash flow commitment.

If this situation comes after '27, '28 when our capex plan will be in full swing and we have committed cash flow and we need to protect our EBITDA and margin, then we will think of this hedging. Till now, we have not gone to that periphery.

Understood. Sir, with respect to aluminium division, what is the dependence on grid for power requirement?

What is the percentage, and is it changing over the last 2 years?

Very less.

Power very less. Whatever power we require around 800 MW megawatt, that we are totally taking from our own captive source.

Sometimes in case of some very less breakdowns, in some breakdowns only we depend on the grid. Almost 96% to 97% of our power

100 million units. In

quarter three, 100. Quarter-wise, you can take.

How much, sorry? 10%?

I think no, not 10%. I think it must be less than 5%.

Actual till date up to 9 months, we have imported 90 million units.

Only 90 million units.

90. 90, 100 ke aas-paas.

Okay. Sir, with respect to carbon

cost Where as we have generated around 5,773 million units.

Not even less than 5%, 1% to 2%, 2%.

20 million, 100 million units, okay. Sir, just one or two more questions.

With respect to the carbon cost, CP coke, CT pitch, etc., what is the inflation we are seeing, and when is it likely to hit?

CP coke price

CP coke and CP pitch. CP coke price we are expecting that the fourth quarter, it will be around 2,000 more, what we have in the nine months average, it is around 52,000.

It will be around 54 in the next quarter, the fourth quarter. That is the increase.

CP coke, there is a huge increase, 12,000. CT pitch, there is a increase of 51 to 53, 2,000.

Here CP coke, 43 to 54. CP coke

there is an increase, no?

Okay. Roughly 20%

here

and

20% more than 20% in CP coke. Our average price was 42,764, and we are expecting in the new contract, it is around 54,600.

There is a huge jump that 12,000 around.

When is this getting reflected, from fourth quarter?

Yes. Q4, it will be reflected.

Is this an annual contract or is it quarterly or monthly?

Six months. We do for six months.

This contract is from January to June.

Got it. Just, sir, one last question on capex.

You said around ₹1,800 to ₹2,000 crores this year. Is it possible to split how much you're spending on maintenance and how much on the refinery, and then how much is left on refinery?

This you are talking about the next fiscal, 2026-2027?

This year you said around ₹2,000 crores, right?

This year

This year is 1,700. 2025-2026 around 1,700 capex, and I think

'27-'28, 600 onwards. 600 to

700

is AMR, that is addition, modification, and replacement project. The rest is other projects.

So 1,000 is growth and 700, 800 is 600, 700 is AMR.

AMR. You can treat in that way.

Okay. Sir, in this refinery 1 million ton, how much will be left which will be spent in FY26-27?

Till

date, we have already spent ₹5,000 around ₹5,000 ₹5,000 crore. I think next year, it will be around ₹500 crore.

Got it. Just if I may ask one more question, sir, we're doing some JV on

caustic soda.

Is that production producing, and are we getting any cost benefit or the profits are getting factored in?

No, we are not getting any benefit because we are getting a raw material security. Because we have a agreement with them, the joint venture agreement, and we will be procuring 1.5 lakhs from them at the price which will be discovered through tender.

Whatever price

we will pay to rest of we will be there.

Now we are going to give that pricing policy and will it works.

Actually, what is happening, since we have a assured quantity of 1,50,000 from there, if that quantity is not available, there will be a deficiency in the market and the other suppliers will increase their prices. This JV has goes in a long way in just curtailing the increase in the prices.

Understood. Got it, sir.

Thank you so much, and all the best.

Thank you, team Chorus. On behalf of NALCO, I thank all the esteemed participants who took out their valuable time and participated in this conference call.

This shows your keen interest in the business activities of this Navratna CPSE, NALCO. Thanks to team Chorus for facilitating this post earning call for Q3 results of NALCO.

We are also thankful to team Systematix for hosting the earning call on quarter-on-quarter basis. We solicit your cooperation in future also on a continuous basis.

Thank you all, and we look forward for similar cooperation in future as well. Thank you.