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

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

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