National Aluminium Company (NALCO) posted a 28% year-on-year rise in net profit to Rs 1,835 crore for the second quarter of FY27. Alongside strong results, the company declared an interim dividend of Rs 4.50 per share with a record date of November 6, 2026. The stock currently trades around Rs 326, below previous broker targets of Rs 400.
National Aluminium Company (NALCO) has reported a robust performance for the second quarter ending September 2026, with the company achieving record half-year financials. The state-run metal producer recorded a consolidated net profit of Rs 1,835 crore, a 28% increase compared to the same period last year. Revenue from operations also saw a healthy growth of 26% year-on-year, standing at Rs 5,419 crore.
Following these results, the company’s board has declared an interim dividend of Rs 4.50 per equity share for the financial year 2027. Investors looking to qualify for this payout should note that the company has set November 6, 2026, as the record date.
Market Valuation and Analyst Outlook
While recent brokerage reports from earlier in the year had set a target price of Rs 400 for the company, the stock is currently trading near Rs 326. This gap between previous broker expectations and the current market price reflects broader investor sentiment toward commodity-linked stocks. Investors often monitor these valuation gaps to understand if the market has already priced in growth expectations or if specific sector pressures are weighing on the share price performance.
Operational Pressures and Risks
Despite the strong year-on-year growth, the company faces notable operational challenges. While the overall H1 performance was strong, the second quarter showed sequential margin contraction. This pressure stems from volatility in aluminium prices on the London Metal Exchange (LME), which directly impacts revenue realization. Additionally, inflationary pressures regarding key input costs, such as caustic soda and calcined petroleum coke, remain a factor for the company.
Investors may also track the company’s expansion projects. The ongoing capacity additions, such as the new refinery project, are vital for future volume growth. The commissioning timeline for these projects will be a key factor in how the company manages production scale in the coming quarters. Success in maintaining profit margins while expanding capacity remains a primary monitorable for the long term.
Moving forward, shareholders will likely watch for the impact of global aluminium price trends on the next quarter's results. With the upcoming dividend record date, the immediate focus for investors will be on the company's ability to navigate volatile raw material costs while sustaining its production momentum.