Hindalco Industries Limited has informed the Exchange regarding a press release dated May 19, 2026, titled "Novelis Reports Fourth Quarter and Full Fiscal Year 2026 Results".
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Novelis Inc., Hindalco's wholly-owned subsidiary, reported severely impacted Q4 and full year FY26 results due to two major fires at its Oswego, New York plant in September and November 2025. Q4 net loss was $84 million versus $294 million profit a year ago, while full year net income collapsed 98% to just $15 million from $683 million. Adjusted EBITDA fell 9% to $1.6 billion for the year, impacted by an estimated $104 million from Oswego fires and $143 million from tariffs. Shipments declined 5% to 3,557 kilotonnes due to Oswego disruptions. Operating cash flow turned negative at -$193 million (vs +$951 million prior year), and adjusted free cash flow was -$2.4 billion, driven by Oswego impacts and $2.3 billion capital expenditures (mainly for Bay Minette plant). Net leverage ratio rose sharply to 4.1x from 2.9x. Management expects to return to positive free cash flow by end of FY27 as Oswego restarts ahead of schedule and Bay Minette commissions.
The Oswego fires have significantly impaired Novelis' profitability and cash generation, elevating Hindalco's consolidated leverage. While operations are recovering and the underlying business remains strong (Adj EBITDA/tonne up 10% in Q4), the near-term pressure on cash flows and debt levels will weigh on Hindalco's financials until FY27 deleveraging begins.