Hindalco Industries Limited has informed the Exchange regarding a press release dated November 04, 2025, titled "Novelis Reports Second Quarter Fiscal Year 2026 Results."
HINDALCO · price
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Awaiting price reaction for this filing.
Hindalco has shared the Q2FY26 results of its US-based wholly owned subsidiary Novelis Inc. Novelis reported net sales of $4.7 billion, up 10% year-on-year, driven by higher aluminum prices, while rolled product shipments remained flat at 941 kilotonnes. Net income rose 27% to $163 million due to favorable metal price lag and lower prior-year flood charges, but Adjusted EBITDA fell 9% to $422 million and Adjusted EBITDA per tonne dropped 8% to $448, hurt by a $54 million net negative tariff impact and higher scrap costs. Net income excluding special items declined 37% to $113 million. A fire at the Oswego, New York plant on September 16, 2025 is expected to impact FY26 free cash flow by $550–650 million, with the hot mill targeted for restart in December 2025. The company also raised its cost-efficiency savings target to over $125 million run-rate by end of FY26 and $300 million by FY28.
Mixed signals for Hindalco shareholders: top-line and reported net income grew, but underlying profitability (Adjusted EBITDA and per-tonne margin) compressed on tariff headwinds. The Oswego fire incident and rising capex on the Bay Minette plant have pushed net leverage to 3.5x (from 2.9x) and dragged free cash flow deeper into negative territory, though liquidity remains comfortable at $2.9 billion.