Hindalco Industries Limited has informed the Exchange about an update on fire incident at Oswego Plant of Novelis Inc. a wholly owned subsidiary
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Hindalco provided a third update on the September 16, 2025 fire at its wholly-owned subsidiary Novelis' Oswego plant in New York. In Q2FY26, the company recognized $21 million in related charges. For the full FY2026, the incident is estimated to cause a negative free cash flow impact of $550-650 million, including an Adjusted EBITDA hit of $100-150 million. The company expects to recover about 70-80% of the loss through insurance claims in future periods. Restoration is underway, with the Hot Mill expected to restart by end-December 2025, followed by a 4-6 week production ramp-up to normalcy.
The fire will weigh on Novelis' FY2026 earnings and cash flows, though the bulk of the loss is expected to be covered by insurance over time. Short-term production disruption and margin pressure are likely until the Hot Mill resumes full operations in early 2026.