Thank you. Good evening, everyone.

On behalf of Systematix, we welcome you to the Q4 FY26 and 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.

Over to you, sir.

Thank you, Shweta ma'am. Namaskar, good evening, and greetings from National Aluminium Company Limited.

On behalf of NALCO collective, and especially from NALCO board, let me welcome all esteemed investors, analysts, fund houses to this earnings call hosted by Systematix Group. Today is a historic day for NALCO.

The board of directors have approved the financial statements for the financial year '25-26, registering the best-ever performance in every front. We have our CMD, Shri Brijendra Pratap Singh, along with our other functional directors: Director Production, Shri Pankaj Kumar Sharma; Director P&T, Shri Jagdish Arora; Director HR, Dr.

Tapas Patnaik; Director Finance, Shri Abhay Kumar Behuria; and Director Commercial, Shri Amiya Kumar Swain, in this conference call. Presentation on this Q4 and FY26 is already uploaded with the stock exchanges as well as in the company's website.

I hope Systematix Group must have also circulated it to all our esteemed investors. Now I request our CMD sir to kindly highlight the results and also the outlook of the company.

Over to you, sir.

Good evening. Good evening to everyone connected over VC.

All our directors are present here in our boardroom, and our Company Secretary, Bharat Sahu. Everyone connected through VC along with the Systematix Group.

Today we have declared our results, and with a very robust performance of the company, I would like to deliberate on the highlights of the achievements of the organization. This year we have done best-ever physical performance in all the areas: bauxite excavation, alumina hydrate production, calcined alumina production, metal production, net power generation, wind power generation.

In all the areas, the growth is there compared to '25, the actual production of '24-25. Bauxite production, around 6% growth; hydrate and calcined alumina production, around 11.5% growth; cast metal production, around 2.61% growth; coal production from our Utkal coal block, around 41.84% growth; power generation from our power units, 4.7% growth; wind power, around 9.25% growth.

Along with that, our sales performance also have been robust. We have done best-ever sales both in terms of alumina and metal, aluminium metal.

Alumina sales has grown by around 30.74%, and metal sales, that is aluminium sales, has grown by around 2.85%. All the physical performances in all areas and sales performance has been ever-best.

Backed by this performance, our financials also, we have done best-ever financial performance this year. Last year we had best-ever in '24-25, and we have surpassed those figures.

Revenue from operation in the year '24-25 was ₹16,788 crores, which has gone up to around ₹17,843 crores, a growth of around 6.28%. EBITDA has grown from ₹7,922 crore to ₹8,613 crores, around 8.72% growth.

Profit before tax, from ₹7,135 crores to ₹7,767 crores, around 8.86% growth. PAT, from 5,325 to ₹5,816, around 9.22%.

All these financials are also ever-best. All this achievement what we have done, the two major reasons of this achievement were dedicated and hard work of each and every employee, support of our stakeholders, support of our ministries and government.

Our physical performance was best-ever physical performance. We have improved not only on the volume, we have improved on the techno-economic figures also, like caustic soda consumption, CP coke consumption, furnace oil consumption.

All these areas also a lot of savings we have done. With increase in volumes, increase in our efficiencies, we have increased our profitability in spite of reduction in the alumina prices.

The alumina prices if we see year-on-year, around more than $200 it has gone down. In the year '24-25, average alumina realization was around $580, which has come down to around $370 this year.

Of course, in metal side, the average realization has increased from around $2,550 to around $2,700 US dollars. Major highlight is that we have been able to tap our potential, reach to the fullest capacity of our potential with a good improvement in our techno-economic figures.

Thank you.

Thanks for the opportunity and congrats for the great set of numbers. Just wanted to understand on alumina front if you can throw any guidance on FY27 production and sales volume, both on alumina and aluminium.

FY27 if you see, our target is our 5th stream refinery is coming. We are planning to add because commissioning will start in June and maybe take three, four months to reach to the production level.

This year we are planning, optimistic planning we have done of 2 lakh tonnes. Around 25 lakh tonnes of alumina production and sales we are planning.

That is around 2 lakhs more than the previous year. It will further increase as per as the commissioning process goes.

As far as the metal production is concerned, metal production again we have targeted more than this year, slightly more because we have already reached to the upper limit. Our capacity is 4.6 lakhs.

Last year we have done around 4.71 lakh tonnes of metal production. This year we have planned around 4.73 lakh tonnes of metal production.

Both areas in alumina and metal, we have looked for the growth.

What is our exposure to Middle East in terms of alumina exports, and is there any impact on sales volume next year?

Our alumina export to the Middle East, of course, that was going earlier in the previous years, around 40%, 50% of our export was going to Middle East, which has got affected. Now from Indonesia and other places also orders are there.

Of course, that has resulted into the reduction in the spot prices. The spot prices has gone down to as low as around $310 to $305.

That is the effect of the war. Once the Middle East smelters, the production curtailment is there, till they reach to the fullest capacity, there will be effect on the alumina pricing in the spot prices.

Sir,

in terms of volumes, any impact on sales volume because of this disruption there?

Sales volume till now, no. Our volumes, whatever spot tender we are doing, we are getting the orders.

In fact, in our last spot tender we got the order of around 36 orders we are getting. We are trying to increase our presence in the domestic market also.

Like last to around '24-25 our domestic sales was 40,000 tonnes. This year, '25-26, we have done around 1,40,000.

We have increased the volumes in domestic sales by around 1 lakh. This year again we are targeting to further increase, go to around 2.5 to 3 lakhs, I think, something like that.

We are targeting domestic market to further increase the volumes, and we are trying to have some long-term relationship, long-term engagement with smelter manufacturers across the globe so that we have the comfortability of selling aluminium to the smelters.

Got it, sir. Thank you, I'll get back to the queue.

Hello. Yes, a very good evening and thank you for the opportunity.

Congratulations for the strong year that you've had. Sir, one question, follow-up from the previous participant.

Could you give me the average alumina realization price for the quarter, and how is it shaping up in Q1?

Quarter means which quarter you're asking?

For Q4, what were the average alumina realizations and how is Q1 shaping up?

Q4 '25-26?

Yes.

Q4 '25-26 average realization was somewhere around $3,000. Alumina you're talking or aluminium?

Alumina, the chemical part.

Alumina, it is $348. $348 was there in Q4.

How is Q1 looking?

Q1 it was $460.

No, Q1 this Q1.

This

Q1

will go down, further go down. It is around $320 average we are getting now.

Got it. Sir.

Sir, just one question. Because aluminium prices are quite strong, are we putting any hedges in place or it's going to be directly linked to LME how we have been doing till now for aluminium?

Hedging we are not doing. It's directly linked to LME since LME is on the rise.

That's why we don't require to do any kind of hedging.

Got it. Sir, for volumes for alumina, you just stated that we are going to be doing incremental 2 lakh tonnes from the new refinery.

Earlier we were targeting 50% utilization, then we had got it down to 30%, now we're sort of at a 20% to 25% utilization. Are we expecting some delays or how should we look at it?

In fact, not delays. We were expecting that by June, yeah, some delays will be there because we were expecting that by June we'll be completing the total production commissioning process.

In June we are starting the commissioning process, which may take two, three months to complete it. 2 lakh is a very optimistic figure which we are targeting.

Maybe it can further go up if the commissioning process is completed early.

Okay. Sir, my second question would be, where are we in the process for the new aluminium smelter, and how should we take a look at the capex number going ahead for the next two, three years now?

New aluminium smelter, already we have placed the order for making DPR for both smelter and our power plant. Now preparation of DPR is under progress.

Technology licensor already we are appointing. Our target is by this year, maybe September, October, August, September we will be able to complete the DPR, get the board approval, and start the tendering process for procurement, which will take six to seven months.

Means next month, next year April, May we can complete that ordering and start the actual ground work. It will take around 3.5 years from there.

Our target is by 20 December 2030 or maybe early 2031 to complete the overall commissioning.

Got it. How does the capex number look for '27 and '28, and where can we see the capex peaking out?

Capex, like this year the capex will not come, but '27-28 the capex will start coming once the ordering is done. Capex phase-in, how much have we done?

'27-28 we may incur ₹4,000 crore.

Capex will be around ₹4,000. This year we are targeting around ₹1,800 to ₹2,000, that is '26-27.

'27-28 it will go to around ₹4,000, somewhere around ₹4,000, and similar kind of capex

it will further increase.

Further increase because our total investment will be around, both if we see power plant and this will be around somewhere around ₹30,000. That will be phased out in around three to four years from next year onwards, that is '27-28 onwards.

Maybe first year will be around 4 to ₹5,000, next year will be further go to around 8 to ₹10,000,

and

will peak out to around 8 to ₹10,000 somewhere like that.

Got it. Thank you so much, sir.

All the very best. I'll join back the queue.

Thank you.

Thank you very much, sir. Can you give us the alumina and aluminium cost of production in the fourth quarter, and what would it be today in 1Q given the cost inflation that we have seen?

If you see the cost of production of our alumina and aluminium, alumina, our cost varies from 20,000 to 22,000 in between, okay? If you're talking about the aluminium, it is 155 to 100, 1,55,000 to 1,60,000, that is varied.

The first quarter, the cost will not increase much. Though there is some increase in the input cost, but since our employee costs are getting down because of the high paid employees are getting retired and we are recruiting the new one, whatever extra cost we are incurring in the input cost, that will be set off by our fixed cost, reduction in fixed cost, employee cost, power and fuel.

There will be not much hike in the cost. It will be varied that range only, within 1,60,000.

Sir, that's very good to hear. Do you expect that trend to continue in the second quarter as well, because we are seeing caustic and fuel oil and carbon prices all rise very sharply?

We are expecting that what is, suppose there is increase in the caustic and CTP, but we are going to increase coal supply from our captive mines. Our captive mines, Utkal D and E, that will give us some comfort.

Whatever cost we'll be incurring additional cost in the input cost outside SOA, that will be to great extent will be compensated the reduction of the power cost, coal cost from our captive mines, because in the next year we are going to increase production by 8 lakh more. That comfort will be getting.

Got it. Sir, my second question is that the Japan aluminium premiums have risen very sharply from just around $100 to nearly $300 per tonne.

For NALCO's aluminium sales, what were the premiums that the company realized in fourth quarter and what do you think will be realized now?

Metal, we have a pricing policy. We don't changes frequently the premium part.

We have a mechanism of pricing calculation and we have fixed the premium I think six, seven months back. That pattern we are following.

It is linked to the LME, we don't change our premium frequently because that is a transparency policy we are following. That gives a very confident to all of our stakeholders.

We don't linked to the Japan premium regularly. It is fixed I think last year it was fixed and that is continuing.

We don't change. Sir,

do you expect to revise it anytime soon, sir, given that the premiums have risen very sharply across Asia?

Maybe within a month or two we will be going for some export tender and whatever premium we will be getting there, system is that we go for export tender in within every six months, something like that, and whatever premium we are getting, that we adopt for next six months. We'll be going for export tender and whatever premium we get, then we will include in our pricing policy.

Got it. Got it.

Thank you very much, sir. This is very, very helpful.

Good evening, sir. Sir, just a question, you mentioned about, sir, the employee costs coming down.

In this particular quarter, we've seen almost a 13% increase YoY and a 26% sequential increase compared to third quarter. Is there any one-off or any gratuity provision that was there in this quarter?

You're telling quarter-to-quarter?

Employee costs.

Employee costs overall if you see, year-to-year it has gone down. Year-to-year if you see, it has gone down.

If you compare to '24-25, financial year, it has gone down by around ₹65 crores, employee cost, because we have retirement of around 351 people and we have inducted around 358, but whatever retirement was in the higher pay scale and the induction is in the lower pay scale.

If you compare the quarter-to-quarter, it will not give a right picture. Some of the provision is being made at the end of the year: actuarial valuation, everything.

If you see the overall '24-25 and '25-26, there is a reduction of 2%.

In

'24-25 our employee cost composition of total expenditure, it was 18%, and this year it is 16%.

Sure, sir. We expect this to continue, right?

In FY27 also we don't see a material increase?

I think it will continue.

FY27 also further superannuation is by around 250 numbers

and

our recruitment will be also similar kind of thing. Superannuating staff is always on the higher pay scale and the people joining are on the lower pay scale.

Similar kind of savings will be there.

Sure, sir. Also on the other expenses, again maybe because of fourth quarter, there's been a significant increase, YoY basis at about ₹850 crores.

Again, is it some year-end provision which will probably not recur going ahead? Other expenses, sir, it's about ₹850 crores for this quarter.

Other expenditure actually we have made some extra provision because of some statutory reason, our red mud pond one. There is a statutory provision that after you utilize that red mud pond, you have to give a complete cover of that which green and everything, that we have made a provision of around ₹40 crores for that.

Second additional provision we have made for our fly ash utilization, because the nearby area where we used to dump our fly ash, that has been exhausted and we have to transport further distance, we have made a provision of transportation cost, so that has I think we have kept ₹54 crore additional. These are the expenditure we have taken in the fourth quarter, that's why there is some additional impact.

Almost ₹90 crores.

That is a provision, not the cash expenditure, that is only provision.

Sure, sir. Also, sir, what was the capex that we actually incurred in FY26?

FY26

capex around ₹2,000, ₹2,000 crores, ₹2,008 crores.

Sure, sir.

Our target was ₹1,700, but we have exceeded by almost ₹400 crore more.

Sure, sir. Sir, and just lastly, coming back to the alumina pricing scenario, I think you had earlier mentioned that Indonesia the smelters were delayed, but the alumina refineries had come on stream, there was a pressure on pricing.

By when do you expect this to probably normalize and the smelting capacity to start operations in Indonesia?

Indonesia smelting capacity is going to start this financial year-end, some of the smelting capacities. In spite of that, their refineries' capacities are on the higher side.

There will be an excess of alumina in the market every time this year or maybe next year. With this, some of the smelters in the Middle East going down and their revival itself will take around seven to eight months or maybe one year.

This year, this financial year there will be an excess of alumina in the market and the pressure on the pricing will be there. Sure, sir, but

I think in the Middle East there was some alumina refinery capacity also. Is there any impact on that or that is operating at normal levels right now?

The refining capacity is less than their smelting. They were importing the alumina.

Refinery as of now we don't have any update on the refining capacity whether it has any effect on that. Of course smelters, three smelters, Qatalum in Qatar and EGA, Dubal, and one more smelter have got affected and they reduced the production by around 50%.

That's why their overall alumina consumption has gone down.

Okay. Sure, yeah.

Thank you so much, sir.

Yes, sir. Thank you, sir.

What percentage of this coal and caustic soda we are able to produce, sir, captive?

What percentage of coal?

Yes, sir. Coal and caustic soda.

Overall coal requirement is around 7.2 million tonnes. Out of that, last year Utkal mines has produced around 4 million tonnes.

This year we are targeting 4.8 million tonnes. That is our in-house coal production.

Out of 7.2, 4.8 this year will be producing. As far as caustic soda is concerned, around 50% of our total requirement is produced in our JV, that is in GACL.

Yes, sir. Balance we are procuring from outside, sir?

Rest caustic soda we are procuring from outside and coal maybe around 2.5 to 2.7 million tonnes we source from MCL through our linkage route, fuel supply agreement route.

Right, sir. Sir, one more thing, sir.

This price of caustic soda has gone up now during last two, three months?

Yes, yes. The cost of caustic soda has gone up.

It has gone up by how much? Caustic soda if you see last year average, beginning of the year it was around 38,000 and '25-26 average cost is around 42.

First quarter we are expecting 45,000. From 42 to 45,000 it has gone

in last

six months.

Yes, right. Sir.

Thank you.

Thank you.

Hi, sir. Good evening and thank you for the opportunity.

Sir, my first question pertains to your previous remarks that you said coal would be 4.8 million tonnes from the captive sources next year. Have you received the EC clearance because as far as we are concerned, I think we had 4 million tonnes.

That is almost under process and we are very much sure that in coming three, four months we'll get it.

Sir. Sir, second question pertains to our rare earth, lithium projects which we are about to take off.

Anything happened in KABIL or any other segment, any progress there if you could give us some idea?

You are not clearly audible. Just if you can repeat your question?

I'll repeat myself, sir. Regarding there was a lot of news of us about us exploring the rare earth and critical mineral assets as well.

Apart from the KABIL Argentina mines, have we scouted or zeroed down on anything else?

Apart from KABIL, we have taken two, three projects. In rare earth and critical mineral, we have huge amount of red mud lying with us and there some projects we have taken it up.

In coming times, there are some visibility that we'd be getting some valuable items from this. Presently these all are at pilot scale level, it will take another two, three years to firmly decide upon the value which we will get out of this.

In some of the projects, like gallium extraction project, we are at advanced stage of putting up a pilot plant, and we'll get the first flight of extracting and putting up a gallium plant down the line after two, three years.

Noted, sir. Sir, just lastly, when we'll be starting spending capex on the half a million tonne aluminium smelter?

When we can expect that project to take off and the capex to start flowing in?

Capex will start in '27, but that will be starting of the capex. The main capex cycle will start in '28, '29 and '29-30 will be the peak capex cycle, and we'll be completing by '30 or '31, first half.

We'll be starting in '27 and three years will be completing our smelter.

Okay. What could be FY27 and '28 capex figures if we need to build in our estimates?

For 0.5 million tonne, it will be around ₹18,000 crore.

'27-28 he is asking. '27-28 capex will be around

₹4,000 to ₹5,000 crores will be '27-28. After that, the capex will further increase.

Next three years it will go to around ₹8,000 to ₹10,000. Because smelter will come with a power plant also.

270 into 4 megawatt power plant also is there. Capex will be considering both of the projects.

So ₹4,000 crore majorly for the smelting plant in FY27. Is that a correct assumption?

Yes,

correct. That's all from my side, sir, and all the best for future.

Thank you for the chance. I got disconnected, please excuse if it's already discussed.

My first question is on coal. Can you just remind us what was the captive coal production for FY26 and for '27, what is your expectation?

Then the remaining coal, which is roughly around 3-odd million tonnes, which we are buying from Coal India, if you could just share what is the mix between linkage and e-auction?

As far as our coal production, FY26 we have done 4 million tonnes and 4.8 million tonnes. Rest of the coal we are taking through FSA linkage route from Coal India.

E-auction very less quantity we are taking. I think out of the total quantity, around 10%, 15% only we are taking from e-auction route out of the remaining around 2.5 to 2.6 million tonnes.

Rest we are taking through linkage route.

Roughly what would be the cost difference between linkage, e-auction, and captive coal?

Between our captive and this linkage coal, the difference is around ₹300, ₹300 per tonne. Captive to e-auction, it will be around maybe ₹600 to ₹700, ₹600

to

₹700.

In '25-26, our linkage coal cost is around 1,800 and our captive Utkal D is 1,500,

₹300 difference.

E-auction coal is slightly higher, 2,100.

It will be around ₹600 difference with e-auction. E-auction very less quantity we are taking, around only 10% to 15% of the total requirement.

Specially for Damanjodi we are taking through e-auction.

Understood. That's very clear.

Sir, second, on the employee cost, can you guide us for next one or two years what is our expectation? What is the employee count currently and what is the retirement expectation over the next few years?

On an average, yearly retirement is around 250 numbers will be retiring next four, five years. Our recruitment this year will be doing around maybe 200, 250 recruitment this year.

Next year we will see as per our requirement we'll do. Employee cost will go down because the retiring people are in a very higher scale of basic and DA they are in.

That will further go down because you see this year our overall employee cost was around ₹1,721 crores overall expenditure on employee, and last year it was 1,786. ₹65 crores we have saved on employee cost, and it is coming overall 10% of the overall expenditure.

It will slightly reduce.

What is the count today, around 4,600?

Strength is around 4,880.

Sorry, 48?

4,880.

4,880.

Because, sir, we were expecting the similar around 300, 400 reduction, recruitment of 200-odd, but year-on-year there's no change. Last year also whatever number I have, it's around 4,800.

Yes,

yes. Similar kind of thing.

The people retiring and similar kind of people we are recruiting, same number. Our 5th stream which is coming, since we are going for expansion, the 5th stream which is coming, for that we'll be requiring an additional manpower of around maybe

200

to 250 for which our recruitment process has start started. That in that area since our volumes will also be increasing, some additional manpower will be required there.

Okay. The pay commission impact, when do we start seeing that?

What is the estimate?

Pay commission impact will start from January '27.

There will be some impact because

of implementation,

last quarter of this fiscal and from next financial onwards. Average increase will be 10% to 15%, but if you see the overall cost, because our volume will increase, if you see the per tonne of cost, it will be coming down.

Though the absolute figure may go up, but per tonne cost will be coming down because of our volume.

Roughly around 2,000-odd crores is what we can expect from FY28? FY27-28

now it is 1,700, ₹100 crore additional cost may come,

15%

increase.

Got it. All right, thank you and all the best.

Thank you.

Very good evening, sir. Thank you for giving the opportunity.

Sir, I have a question on chemical segment. If you see the revenue was free fall, it is 12% decline from ₹7,600 crore to ₹6,694 crore.

I want to know what are the main primary sectors this happened and when the situation will normalize? Going further, how do you see the volume and realization on this segment?

You are talking about reduction in the revenue from chemical sector, na?

Revenue and margin both.

Chemical sector you see, our prices has gone down by around $219 compared to last financial year,

which has resulted into

less revenue of around ₹2,659 crores.

That is the

amount of loss we have suffered due to reduction in the spot prices. We have compensated it by increase in the volume.

We have sold around 3.4 lakh tonnes of excess of alumina by increasing our volume production, which I have told earlier also that we are targeting to increase the volumes. We have increased the volume of production by around 2.5 lakh to 3 lakh tonnes.

It has given us additional favorable impact of around ₹1,714 crores. Net adverse impact of alumina is around ₹784 crores only in spite of ₹2,660 crores of adverse impact due to pricing.

Okay. Thank you, sir.

Thank you for the opportunity and congratulations on a very good set of numbers, sir. Sir, what would be your view on the alumina prices going forward looking at the amount of surplus that is available due to shutdown of some of the smelters in Middle East, et cetera?

Do you think that it's now at the bottom or do you see still scope of the prices going down? That's number one.

Also similar outlook on the prices of aluminium.

As far as alumina prices are concerned, is almost on the bottom. Whatever spot tenders we are doing, we are getting the price of around $310 to $320.

In few tenders we are getting $330 or $336 also. What we are expecting this fiscal, this financial year it will be somewhere around in between $300 to $310 average alumina pricing will be there.

Metal pricing, of course, at present it is at the peak around maybe 3,600 LME is there. We are expecting that it should be somewhere around average if we see the average of the total year, somewhere around 3,000 it will come down once the wars are over and the situation normalizes.

Somewhere around 3,000 because already demand supply gap will be there, we expect that it will be LME somewhere around 3,000 average we will be getting.

All right, sir. As you have mentioned that our prices are linked to LME and we do not do more frequent revision in our prices, can we assume that it is basically some sort of a long-term arrangement?

It's not a long-term arrangement because LME keeps on changing, and every three days we keep on changing our price as per the variation of the LME is there. The premium, we do the export tenders.

Every six months we do the export tenders, in between also sometimes we do, and depending on whatever the premium we are getting on the export tender, we fix up the premium.

How much would be spot and how much would be long-term contracts in alumina and aluminium both?

Alumina, most of our alumina is going on spot tenders

because

every month four shipments we are doing on spot. We have done few of the tenders on the long-term, that is three months and four six months tender also.

Now, at present we don't have long-term because since the pricing is very low, we are not going for the long-term now. We are only relying on the spot tenders.

Once the prices slightly stabilizes, these war situations are over, we will try for some long-term contract also.

Are we on track with our expansion plans for alumina and aluminium?

Alumina, 5th stream expansion, our target was June we will start the commissioning. June we will be starting the commissioning.

Commissioning process takes three to four months because it's a chemical plant, process plant, to stabilize the production and reach to the 50%, 60% of the rated capacity. As of now, we are on track.

Maybe one or two months delays we are expecting depending on what happens when we start the commissioning process.

That was helpful, sir. Lastly, we have also mentioned in our results that the board has decided to discontinue the Utkarsh JV with Mishra Dhatu Nigam.

Are there any plans for going in value-added products because earlier it was envisaged that we will be going into value-added products in defense and aerospace and like that? What would be the plans going ahead?

How much would be the capex?

Actually Utkarsh JV was made and basically at that time the forecast was that the growth in the transportation sector will be there. Of course, defense sector requirement was there, but defense sector requirement was very less, and the kind of capex involvement was there, around ₹4,500 to ₹5,000 crores capex was required for that.

As of now, the requirement in the transportation sector has not grown like that. That's why it is not looking that much favorable.

Even the IRR with the capex investment was coming negative. That's why we are not going ahead with that.

As of our existing plant is concerned, we are going for one more wire rod mill to increase our wire rod production. Wire rod also be considered as a value-added, and the new wire rod mill will be producing more of a alloy-grade wire rods and good quality wire rods.

Around 60,000 tonnes of wire rod mill we are going in. It will take around two years.

Our flat product, rolled product plants, we are adding one annealing furnace. That will increase the production from our roll plant.

Roll plant on an average we are doing around 2,000 per month. We are targeting from this year onwards around 24, 2,500 tonnes per month.

That will again be a value-added. These are the two areas where we are working to increase our value-added presence in the existing operation.

Of course, in our expansions, we will be targeting more of a value-added, that is wire rods, maybe some rolled products or maybe billets, something like that.

That was really helpful, sir. Thank you so much and wish you all the best.

Thank you.

Hi, sir. I'd like to know in the beginning you mentioned that your additional capacity in alumina would be 2 lakh tonnes.

That was your optimistic approach, right? What would be your conservative approach?

I think I don't know. It's very difficult to tell.

It depends on the commissioning process. Optimistic and conservative, 2 lakh is the minimum which we are targeting.

It can go to maybe 3 or 3.5 lakh also depending on the commissioning process.

Oh, okay. Got it.

My other questions related to pricing were answered. Thank you very much and all the best.

Thank you.

Hello.

I

just said thank you. All the very best.

Thank you. Thank you.

Yes, ma'am? Any other, you are audible to you?

Yes, ma'am. Any other?

Good evening, sir, and thanks for the opportunity. I actually missed out on the employee cost increase in FY28 on account of the pay commission.

What is the percentage increase you said in FY28 will happen on employee cost?

Around 10% to 15% increase in employee cost will be there. That will be the impact of pay revision, in between 10% to 15%.

It can be around 12% to 13% also.

Right. My second question was, sir, on alumina exports.

What is the figure for the exports for the year, because you've given the total alumina hydrate sales of 14.46. What is the export figure and what is the domestic sales?

If you see the export sales, alumina export sales we have

1.38 is domestic

and export sales we have done around 13.09 lakh tonnes

and

around 1.37 lakh tonnes of domestic sales. Total

1.37 lakh tonnes, is this calcined alumina or special grade?

It is combined, calcined and hydrate, both.

Okay. Special grade alumina, what would be the production?

Special grade is very less. We are producing around 15 to 20,000 annually.

That much amount only is there. That is also included in this.

Okay. In the new capex, there is no increase in the special grade product, it's all calcined alumina, right?

No, only calcined and hydrate will be there.

Only hydrate, yeah, okay. Fine.

Sir, my last question was on the aluminium smelter and power plant. Initially, we had talked about putting the power plant in a kind of joint venture structure with NTPC or somebody like that, but now are we doing it on our own entirely?

Is it going to be the full capex to be borne by NALCO or there's no joint venture?

Already we are into agreement with NLC, Neyveli Lignite. We have signed one MoU with them.

We are in the advanced stage of negotiation with them, with Neyveli Lignite Corporation for forming a JV company in which 50-50 partnership will be there, because Neyveli Lignite has got a coal mines here in Talcher and that will be very near to our CPP, we will be having a coal security also for our expansion. Now we are in the advanced state of forming a JV company.

The entire capex is not going to be borne by NALCO.

Yeah. The capex will get shared by both the JV companies.

Right, sir.

In CPP.

Just one last question, sir, if I could squeeze in. If on the bauxite royalty, if I look at the other expenses sheet, the figure on royalty has varied a lot.

In the COVID years it was below ₹200 per tonne, and then now after COVID it was 600 and now it is somewhere around 300. What is the figure of the royalty and what is the royalty charged on the new bauxite mines?

Will there be any revision in the royalty on the old bauxite mines?

Royalty figure will changes since the LME is high, royalty will higher the bauxite because it is calculated back calculation.

What is the percentage?

Percentage of royalty, percentage is 0.56% I think. It is calculated content of alumina in the bauxite, in that pattern is calculated.

It is coming around royalty per tonne 450, 60.

Currently it's coming around 400, but if LME increases it will go further.

Got it, sir. Got it.

On the new mines also it's the same?

Quality is almost 42% alumina and if it is direct linked to LME, that's why we are in that same person.

On the new mines also, the royalty will be same.

Thank you very much. Thank you.

Hi, sir. Sir, my first question regarding export market.

Maybe I missed, sir. As you say, 40% to 50% of export go to Middle East, sir?

50% of export you are talking about chemical? Alumina?

Yes, sir. Yes, sir.

Alumina.

Alumina, our total sales last year was around 3.4 lakh we have increased. Total sales export we have done around 13 lakhs and domestic we have done around 1,37,000.

Domestic sales is almost around 10% of the export.

How much is from Middle East, sir?

Middle East what I was telling earlier also, around 40 to earlier 45% to 50% used to go to Middle East, maybe sometimes more also. Now it has gone down.

What is the outlook for FY27 especially for Middle East export? This will come down further?

It will depend on the war, when the war ends. It's very difficult to predict if the war ends and because now the route is also closed.

Whatever route is there, whatever alumina was going, it's going through the Strait of Hormuz. That's why they have to take it through some road route.

It's very difficult to predict now.

Right, sir. My last question, as you say, alumina price will come down again for $300 to $310.

Any impact on margin front for this will come down because

Any impact on margins you are telling?

Margins

already compared to last year it has gone down. Because last year our average alumina price was in '25-26 you see, it was $376 average which we have got.

In '24-25 it was $570. Now this year we are expecting that around $300

to $310. That is going down.

Sir, and how much is going down as per your calculation?

I think it will not affect the margin as a whole, because if we are not getting price in the alumina, but it is being compensated through metal price.

He is talking about alumina.

Alumina to come down, but NALCO overall I think there will be no impact in the price front.

We are getting good price for metal.

Agree, sir. Why I am asking because as you say, aluminium price will over near to ₹3,000 is the peak now, but alumina price will come down.

Your aluminium price will stay around 3,000, but alumina price will come down compared to last year. Then overall margin will come down, na, sir?

Overall margin will not go down. You see our overall revenues, around 70% of our revenue is coming from metal, that is aluminium,

and

30% of our revenue, this year it went down to around 27%. 73% from aluminium and 27% from alumina.

We are getting better margins on aluminium, it will not reduce. In fact, it will increase our margin.

Right, sir. Thank you, sir.

Hi. Thank you for the opportunity.

Sir, quickly a few questions on the raw material side. Are we seeing how much price increase in coal which we are buying from e-auction?

What kind of price increase we have seen in last two, three months, two months actually?

E-auction actually very very less quantity coal we are buying. Only suppose we are taking coal from FSA route through Coal India, MCL, that is around 2.5 million tonnes.

Out of that, around 10% to 15% only buying in the e-auction route. That is approximately 200 to 300 more than the fuel supply agreement jo hamara unke sath me hai, FSA route linkage route se, to ₹300 more we are getting.

Sir, actually in last two months have we seen any increase in e-auction coal price in last two months?

Two months I think last two months we are not done in

e-auction. In e-auction coal, if you compare with the last year average price and current year, there is a reduction, because it is a notified price plus some premium.

Last year it was average cost to us is 2,700, and this year, '25-26, it is 2,400 total. There is a trend of reduction of price if you compare with the previous year.

Understood, sir. I was just looking at last two months because now we have seen increase in e-auction in

Coal India.

Due to war situation you are telling, any increase in the

US?

No, it has not increased, in fact. It has not increased because there is an excess of coal available also.

Coal production capacity has increased. Evacuation is a main issue, linkage e-auction coal prices has not increased.

Hello, am I audible?

Yes, sir.

Yes, sir. Most of my questions are answered.

Sorry if I'm repeating the question again. Can you just briefly mention the capex number that you mentioned I guess to a participant before for FY27 and then factoring for aluminium capacity?

This year, that is '26-27, we are targeting a capex of around ₹2,000 crores. Next year onwards, that is '27-28, what I told earlier also, somewhere in between 4,000 to ₹5,000 crores.

After that, the subsequently year it will further go up. That will be the peak time of smelter erection and all that.

That will go to maybe 7,000 to ₹8,000 crores.

In totality it's ₹30,000 crores that you are saying?

It is not 30. Actually smelter is 17 to 18 and our power plant is around 12.

Since power plant we are going for JV, only 50% maybe 5, 6,000 will be requiring for that, it will come down to around 23,

24. 23, ₹24,000 crores.

Thank you.

Thank you for the opportunity. Sir, can you please give the aluminium realization for Q4 FY26 and the current realizations?

You're talking about alumina or metal?

Aluminium, metal.

Metal. Aluminium average realization which currently we are getting is around 3,600 LME is hovering.

Now just because of war situation and all that it has increased. What we are expecting, it should be somewhere around 3,000 to 3,100 for the average throughout the year.

Q4 realization, FY26 Q4?

Q4 it was around 2,000 2,767 Q4 average '25-26.

2,765?

2,767.

2,767.

Sir, you are expecting aluminium prices to come below 3,000 going forward in financial year 2027? The average would be 3,000?

It is currently hovering around 3,500, 3,600.

Of course, sir. This 3,500, 3,600 is a very escalated thing due to war situation, because already some of the smelters are closed down, their capacities are reduced.

Once this smelter come to the capacity, everything is normalized, so that demand-supply gap will further reduce and at that time the LME may go down.

Right. Before this smelter disruption, before this war, aluminium was hovering around 3,200 to 3,300, so that's why I asked.

Yes. That is a optimistic which we are thinking.

It can go down to maybe 3,000 also, but somewhere around 30 3,000 to 3,100.

Thank you, sir. Thank you so much.

Thank you.

Hi, sir. Good evening everyone.

Congratulations on the robust quarter and annual performance. My question is in three parts.

The first is the 5th stream

go ahead.

Namaskar, sir. Hope I'm audible.

Yes,

yes. Namaskar.

Yes, sir. Sir, firstly, if you could please explain the key reason in terms of our profitability taking a dip for the alumina segment year-on-year, and if you could give us some color on what are the current price trend with respect to alumina?

You see, as far as alumina is concerned, profitability, I told earlier also, this year in alumina segment our volume has increased. Our volume has increased by around 3.4 lakh tonnes extra sales we have done compared to '24-25.

'24-25 our production was 20.75 lakh tonnes. This year we have done around 23 lakh tonnes.

This has given an advantage of around ₹1,714 crores. Of course, the prices have gone down.

The prices have gone down from 595 average in '24-25 to 376 average in '25-26, which has resulted into negative impact of around ₹2,649 crores. Overall if we see, the adverse impact is in alumina segment as compared to '24-25 is around ₹784 crores.

That is there because of reduction in the prices. We have also improved in the efficiencies, like caustic soda consumption and all that.

That has given some advantage of around 100 to ₹150 crores. Coming to this year, if we see this financial year, our volumes will be from existing refinery will be almost similar kind of volume because we have reached to the peak of around 23 lakh tonnes.

5th stream, which is additional refinery is coming, 2 lakhs further will be added. Similar kind of figures with because prices will further go down.

The prices of alumina, which is average was 376 last year, that is '25-26, will go down to around maybe 310 or 320. That will be having another financial impact of maybe around 1,000 or ₹1,200 crores.

Okay. Sir, how are we penciling in this $310 mark?

Have we contracted for the entire year in terms of that or are the current spot prices are hovering in those levels? How have we factored in that?

Yes, sir.

Current spot prices are at the level of 310, 320. Sometime we are getting 330 also.

The kind of situation which is there, there is an excess of alumina in the market. There is an excess of alumina from Indonesia, the requirement has gone down.

That's why we are expecting the prices may not go up, will be hovering somewhere around 310 to 320.

Okay. Sir, earlier there was a formula on the basis of the LME prices, say 12% to 13%, correct me there, of what the LME prices for aluminium, that was the price trend for alumina.

Has that trend taken some hit back because of the availability of alumina or what should we be factoring when we see

LME? Yes, because of availability only,

because

earlier we have got in long-term around 15%, 16%, 17% also of the LME. Now when we are going for long-term agreement, in our last long-term agreement we got around 11.5, 11% to 11.5% only.

The main reason is the excess of alumina in the market.

Okay. Sir, then for the metal part of aluminium, what are we penciling in in terms of the current year?

Means there is a significant profitability shift when we look at the segment results towards the higher aluminium prices. What should investors penciling in in terms of the profitability from the aluminium segment with the type of price trend that we currently have, and also the incremental volume of the metal that we can produce and sell for the coming year?

As far as the volumes are concerned, metal also we have reached to the peak because our capacity is 4.6 lakhs. Last year we have done around 4.71 lakh tonnes of cast metal, and this year we are targeting slightly more, that is maybe 2,000, 3,000 more because we have already peaked out.

Volumes will be almost similar kind of volumes. LME as of now is on the higher side, that is 3,600 or maybe 3,550 it is there.

Once the situation normalize, the smelters again start producing, the LME will come down surely, because now the supply is also not there from the Middle East to the other parts of European where from Middle East was going, that's why also they have reduced the production. LME will reduce to around maybe, but it's very difficult to predict, but what we are thinking is somewhere around 3,000 to 3,100.

Okay. Sir, for the first quarter, the quarter which is now in the month of April, what has been our average sales realization for the aluminium metal and how much have we contracted for the remaining part of the quarter?

This quarter, first quarter this month our average realization is somewhere around 3,600, 3,550, 3,600 we are getting this month, that is April. May also we are expecting first quarter will be good.

First quarter we will be averaging around maybe 3,500. Okay.

Okay. There will be a significant contribution from the higher realization from the aluminium segment, whereas for the alumina part, we will be in the same vicinity of $310 to $315?

Right, right. If you see our average metal price for the last year, '25-26, our profitability based on the average metal price is $2,674, the whole year average.

If CMD sir is telling that if our aluminium price varies from $3,000 to $3,100 for this fiscal, '26-27, we'll be getting $400 more. That is a comfort zone we are expecting.

Though there is some reduction in the alumina prices, but we will be getting that comfort in the metal price if the whole year metal average price is in the range of 3,000

to 3,100. Sir.

Just to model it out, the quarter four numbers give us a base in terms of what we can expect, taking into account the current evolving situation. We should be setting this base of say 2,300 PBT number that should not be trending lower if the cost component does not go higher.

This understanding is correct on our

That is correct. Almost that is correct if we produce that much of volume.

Then we are expecting that profit of more than 2,000 plus first quarter, because price is in our favor.

On the volume front also, sir, we have said that we have already reached the peak in terms of both the alumina and the aluminium of whatever production or dispatches we can do. Going ahead we are not going to see any incremental volume for the coming financial year?

Advantage of any incremental volume?

Incremental will be coming from the additional 5th stream refinery. From the existing refinery, almost similar kind of volumes will be there.

The new stream, sir, would be commercializing in which quarter?

The commissioning process will be starting in June and the commissioning process itself takes around three to four months. Maybe in the last quarter only we will be able to have the production from there.

That's why we have targeted only 2 lakh tonnes from the new refinery.

Okay. For the next year as a whole, sir, it will be ramped up to how much?

Next year our capacity is 1 million tonne, that is 10 lakh tonnes. Next year onwards it will be doing 1 million tonne.

Okay. In terms of selling of the product, sir, it will be catered to domestically or what percentage will go towards as an export?

How have we arranged the selling arrangement part?

Like this year, this year out of total sales, whatever sales we have targeted, this year around 2 lakh, 2 lakh I think 2,50,000 we have targeted for domestic. That we have targeted for domestic and export will be around I think 13 or 14 lakhs will be export.

Domestic will be around somewhere around 10% to 15% of the export.

Majority will be towards the export only as has been the case for the current year. Yes, yes.

Okay. Lastly, sir, towards this the caustic soda part and how is our, sir, GNAL, the JV which we have with Gujarat Alkalies, how have been the performance from the same and what should be anticipated going ahead from the same?

GNAL JV in last financial year, that is '24-25, it has given a negative impact of around how much? Their total loss is ₹38 crore.

This year only 38.

Last year, they have reduced their loss from ₹135 crore to ₹38 crore, because '24-25 they have incurred a loss of ₹135 crores, but they have brought down to ₹38 crores this year. Most importantly, the last quarter they have made a profit of ₹11 crore.

That is a very positive point.

We expect that this year again they will turn to profit and the negative impact which they are having, which will further reduce. Now

we'll be getting

some money

from them.

Okay. Sir, how have the price trend been for the caustic, our cost which we have incurred through this JV?

Although it is at arm's length, how have the caustic soda prices trended?

For JV you see, whatever prices we do, 50% of the quantity we take from the market. Whatever pricing cost we are getting from the market, that is applicable to JV.

They have to give us at the same price.

There is no price concession.

Yes, sir. There is no price.

That was I'm asking. How have the price trend been for the caustic soda for the quarter ending March '26 in comparison to

Price trend is last year, '25-26, it was ₹42,177 per tonne average. The quarter one '26-27 what we are seeing is it will be around 45,000.

There is an increase of around 3,000.

From last year averages it will be higher by 3,000 for the first quarter, June quarter.

Quarter one, quarter two, because we have ordered for six months. First six months will be around 3,000 more.

Sir. Lastly, sir, on the CWIP, the closing balance was ₹6,300 crore.

What portion will get capitalized for this year and what are the facilities, sir, I think so?

I think 100% will be capitalized this year, because the majority is towards the 5th stream expansion. It is around 5,500.

If we capitalize from June onwards, I think this year the whole CWIP will be converted to asset, capitalization.

All the backward integration part for the coal availability under coal mining part, sir, what is the current update on the same? How much of the coal are we mining ourselves and through the MDO route and

We have answered that question earlier.

Very sorry, sir.

See the coal requirement is around 7.2 million tonnes. Out of that, our own production will be around 4.8 million tonnes, and rest will be taking mostly from our linkage route from Coal India.

Around 5% to 10% we go for e-auction.

Thanks for the opportunity, sir. Sorry, I got disconnected that time.

Sir, I think you mentioned that e-auction coal prices, we have not seen any major increase in last two months. That's right?

Yes, yes.

Okay. Sir, secondly, the way you mentioned about caustic soda price, is it possible to share your different raw material prices like CP coke, CT pitch, and aluminium fluoride, what it was in FY26 and then what

You see caustic soda prices average '25-26 was 42,000. It has gone to 45,000.

CP coke '25-26 it was 53,000. This year Q1 and Q2 it will be somewhere around 57,000.

Aluminium fluoride, 1,21,000. It has gone to 1,30,000.

HFO has further increased. HFO and LDO, that is the substantial increase which we are seeing.

LDO to kam lagta hai, hamara HFO jyada lagta hai, from 46,000 to 70,000. This kind of increase we are seeing in caustic soda, CP coke, aluminium fluoride, and HFO.

Sir,

what about CT pitch?

CT pitch is almost same. CT pitch, ek minute, CT pitch, no, it has gone up from 44,000 to 56,000.

CT pitch has gone up from 53,000 to 57,000. Oh, sorry.

CP coke has CT pitch from 53,000 to 57,000, matlab around 4,500 increase hai CT pitch

me,

and CP coke from 44,000 to 56,000. Isme bhi around maybe 11, 12,000 ka increase hai.

Sir, matlab if I'm looking at from FY26 average versus first quarter, we are seeing increase in all our raw material prices. I think that has only been somewhat, I don't know from where it is being offset.

Your cost of production definitely should increase from what you are talking about 150, 155. Isn't it so?

Yes,

yes. Cost of production will increase.

Will increase, but

When we are talking about 155 to 160, that was for Q4 or FY26?

Average cost is around 155. 156 for the whole year.

If you see the Q4, it is around 1,57,500. We are keeping a highest rate of 160.

In any case, it will not go beyond 160.

Understood. Understood.

Sir, lastly, what could be our power cost per unit?

Power cost per unit is around ₹3.15.

This is at EBITDA level you're talking about?

EBITDA level, it is coming around if you see the expenditure, it is coming around power cost is 31%

of the total cost.

Total cost, if it is the revenue, it is coming around 15% revenue. Okay.

Sir, actually I was trying to ask, what could be our power cost per tonne of aluminium? When we are talking about 155 to 160,000 per tonne of aluminium production, what could be our power cost in that?

It is coming around 50

Around 31%, na?

55 to 60,000. 55 to 60,000.

Okay. Okay.

Sir. Thank you so much.

That's helpful.

Thank you.

Thank you, ma'am. On behalf of NALCO, I thank all esteemed participants who took out their valuable time and shared their views and took interest in NALCO's growth journey.

We thank you, team Chorus, for facilitating this earning call for Q4 and FY26. We are also thankful to Systematix Group for hosting the earning call.

We look forward for similar kind of cooperation on continued basis. Thank you.

Thank you all.

Thank you. Thank you.

You go ahead.