Hindalco Buys Bandha Coal Block Firm, FY25 Profit Increases
ECONOMY & POLICY

Hindalco Buys Bandha Coal Block Firm, FY25 Profit Increases

Hindalco Industries Ltd, the metals flagship of the Aditya Birla Group, has announced the acquisition of 100 per cent equity in EMIL Mines and Mineral Resources Ltd (EMMRL), which holds the mining lease for the Bandha coal block in Madhya Pradesh.

The deal is valued at Rs 4.8 million, with Hindalco assuming Rs 11.31 billion in debt as part of the transaction. This strategic move is aimed at securing long-term coal supply for Hindalco’s aluminium smelting operations.

The Bandha coal block holds approximately 197 million tonnes of mineable reserves, with an estimated mine life of 45 years. Located only 20 km from Hindalco’s Mahan power plant, the proximity allows for efficient coal transport via road, rail, or conveyor.

EMMRL, currently a subsidiary of Essel Mining and Industries Ltd, is being acquired through a related-party transaction. Hindalco has stated that the acquisition will comply with fair pricing standards. Approved by Hindalco’s board on 20 May, the deal is expected to close within 6 to 9 months, pending necessary regulatory clearances. EMMRL has reported no turnover since 2020.

Hindalco also reported strong Q4 and full-year results for FY25:
Q4 FY25 Performance:
1. Net profit: Rs 52.84 billion (up 66 per cent)
2. Revenue: Rs 648.9 billion (up 16 per cent)
3. EBITDA: Rs 102.96 billion (up 43 per cent)
4. Dividend: Rs 5 per share (500 per cent), up from Rs 3.5 in FY24
Full-Year FY25 Results:
1. Net profit: Rs 160.02 billion (up 58 per cent)
2. Revenue: Rs 2.38 trillion (up 10 per cent)
3. EBITDA: Rs 354.96 billion (up 38 per cent)
Segment Highlights:
1. Aluminium (Upstream): EBITDA of Rs 162.62 billion (up 78 per cent)
2. Aluminium (Downstream): EBITDA of Rs 6.33 billion (up 16 per cent)
3. Copper: Record EBITDA of Rs 30.25 billion
4. Novelis (US subsidiary):
1. FY profit: $683 million (up 14 per cent)
2. Q4 profit: $294 million (up 77 per cent)

Hindalco also delivered 10,000 aluminium battery enclosures to Mahindra during FY25, reinforcing its role in the EV value chain.

As of 31 March 2025, the company’s net debt-to-EBITDA ratio improved to 1.06x, down from 1.21x in the previous year, indicating stronger financial resilience.

Image source:fortuneindia

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

Hindalco Industries Ltd, the metals flagship of the Aditya Birla Group, has announced the acquisition of 100 per cent equity in EMIL Mines and Mineral Resources Ltd (EMMRL), which holds the mining lease for the Bandha coal block in Madhya Pradesh.The deal is valued at Rs 4.8 million, with Hindalco assuming Rs 11.31 billion in debt as part of the transaction. This strategic move is aimed at securing long-term coal supply for Hindalco’s aluminium smelting operations.The Bandha coal block holds approximately 197 million tonnes of mineable reserves, with an estimated mine life of 45 years. Located only 20 km from Hindalco’s Mahan power plant, the proximity allows for efficient coal transport via road, rail, or conveyor.EMMRL, currently a subsidiary of Essel Mining and Industries Ltd, is being acquired through a related-party transaction. Hindalco has stated that the acquisition will comply with fair pricing standards. Approved by Hindalco’s board on 20 May, the deal is expected to close within 6 to 9 months, pending necessary regulatory clearances. EMMRL has reported no turnover since 2020.Hindalco also reported strong Q4 and full-year results for FY25:Q4 FY25 Performance:1. Net profit: Rs 52.84 billion (up 66 per cent)2. Revenue: Rs 648.9 billion (up 16 per cent)3. EBITDA: Rs 102.96 billion (up 43 per cent)4. Dividend: Rs 5 per share (500 per cent), up from Rs 3.5 in FY24Full-Year FY25 Results:1. Net profit: Rs 160.02 billion (up 58 per cent)2. Revenue: Rs 2.38 trillion (up 10 per cent)3. EBITDA: Rs 354.96 billion (up 38 per cent)Segment Highlights:1. Aluminium (Upstream): EBITDA of Rs 162.62 billion (up 78 per cent)2. Aluminium (Downstream): EBITDA of Rs 6.33 billion (up 16 per cent)3. Copper: Record EBITDA of Rs 30.25 billion4. Novelis (US subsidiary):1. FY profit: $683 million (up 14 per cent)2. Q4 profit: $294 million (up 77 per cent)Hindalco also delivered 10,000 aluminium battery enclosures to Mahindra during FY25, reinforcing its role in the EV value chain.As of 31 March 2025, the company’s net debt-to-EBITDA ratio improved to 1.06x, down from 1.21x in the previous year, indicating stronger financial resilience.Image source:fortuneindia

Next Story
Infrastructure Transport

Indian Railways Marks New Milestone with 4.5 km Long ‘Rudrastra’ Trial

Indian Railways has successfully conducted the trial run of Asia’s longest freight train, named ‘Rudrastra’, achieving a new milestone in cargo transportation, as per news reports. The 4.5 km-long train began its trial from Ganjkhwaja railway station in Chandauli, Uttar Pradesh, and travelled to Garhwa in Jharkhand. Covering a distance of 209 km in 5 hours and 10 minutes, it maintained an average speed of 40.5 km per hour. The train was formed by combining three long-haul racks, with ..

Next Story
Infrastructure Energy

UltraTech Launches India’s First On-Site Hybrid RTC Renewable Energy Project

UltraTech Cement has operationalised a 7.5 MW round-the-clock (RTC) hybrid renewable energy project at its Sewagram Cement Works in Gujarat. The first-of-its-kind solution combines bifacial solar modules with trackers, wind energy and battery storage, co-located on-site, to ensure uninterrupted power for cement manufacturing without grid reliance. The project was executed in collaboration with clean energy solutions provider Gentari. Installed as a behind-the-meter system, it is the country..

Next Story
Infrastructure Transport

Patna Metro Trials Successful, Red Line Priority Corridor to Launch This Month

Patna is set to roll out its first metro rail service later this month, with successful trial runs conducted on the Red Line priority corridor, the Patna Metro Rail Corporation announced.On 7 September, a metro train completed a test run between the Patna depot and Bhootnath station. Officials said the trials involved rigorous checks of rolling stock fitness, overhead electrification (OHE), and track alignment and stability to ensure operational safety and performance.The corridor from the New Pataliputra Bus Terminal to Bhoothnath has been designated as the priority stretch and will be the fi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?