Hindalco Industries Limited has informed the Exchange about Investor Presentation
HINDALCO · price
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Novelis Inc., Hindalco's wholly-owned subsidiary, reported Q4 FY26 results with a net loss of $84 million (vs $294 million profit in prior year) due to two fires at its Oswego plant in September and November 2025. Full-year FY26 net income was just $15 million, down 98% YoY. Adjusted EBITDA for the year fell 9% to $1.6 billion, impacted by ~$104 million from Oswego fires and ~$143 million from tariffs. Shipments declined 5% to 3,557 kilotonnes. However, the company highlighted strong underlying performance with Q4 Adjusted EBITDA per tonne up 10% YoY to $544. The Oswego hot mill is expected to restart within weeks, ahead of the previous end-of-June estimate. The Bay Minette greenfield plant remains on track for commissioning in 2H CY2026 with ~$3.2 billion spent so far. Net leverage increased to 4.1x. Management raised its cost efficiency savings target to ~$350-400 million by end of FY28.
Hindalco's stock may experience short-term pressure due to the significant profit decline and elevated leverage, but the earlier-than-expected Oswego restart and raised cost-savings targets signal management's confidence in recovery. The company expects to return to positive free cash flow by end of FY27.