NALCO Reports Strong H1 Growth and Declares Interim Dividend

Standalone H1 Profit: Rs 3,837.47 crore | Interim Dividend: Rs 4.50 per share

Reader Takeaway: Strong revenue and profit growth highlight NALCO's operational momentum, though legal hurdles regarding wind power revenue persist.

What just happened

National Aluminium Company (NALCO) has announced a significant jump in its financial performance for the half-year ended September 30, 2026. The company posted a standalone profit of Rs 3,837.47 crore, up from Rs 2,497.03 crore in the same period last year. Revenue from operations also saw a healthy increase, climbing to Rs 10,721.82 crore compared to Rs 8,099.28 crore previously. In a move to reward shareholders, the board has approved an interim dividend of Rs 4.50 per equity share, representing 90% of its Rs 5 face value.

Why this matters

The dividend announcement provides immediate value to shareholders, with the record date set for November 6, 2026. The payment is scheduled for distribution on or before December 1, 2026. The substantial improvement in Earnings Per Share (EPS) to Rs 20.89 from Rs 13.60 underlines the company’s ability to capitalize on current market conditions.

Auditor Observations

The statutory auditors have included an 'Emphasis of Matter' regarding the company's financials. Revenue from two wind power plants in Rajasthan is currently not being recognized. This follows the non-execution of a fresh Power Purchase Agreement (PPA) effective since April 1, 2019, with the matter currently sub-judice before the Rajasthan High Court.

What to track next

Investors should monitor the outcome of the Rajasthan High Court proceedings regarding the wind power PPA, as a favorable resolution could unlock recognition for these assets. Additionally, shareholders must ensure all necessary documentation, such as PAN details, is updated by November 9, 2026, to facilitate smooth TDS processing on the upcoming dividend payment.