Please find enclosed herewith Media Release issued by Novelis Inc. (wholly owned subsidiary) for Q4 FY26 and full year 2025-26.
HINDALCO · price
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Novelis, Hindalco's wholly-owned subsidiary, reported Q4 FY26 net loss of $84 million compared to $294 million profit in prior year, impacted by two fires at its Oswego plant in September and November 2025. Full year net income dropped 98% to $15 million from $683 million. Adjusted EBITDA fell 9% to $1.645 billion, with estimated negative impacts of $104 million from Oswego fires and $143 million from tariffs. Total rolled product shipments decreased 5% to 3,557 kilotonnes. Net leverage ratio increased to 4.1x from 2.9x due to fire impacts and heavy capital spending ($2.3 billion in FY26) on the Bay Minette greenfield project. However, the Oswego hot mill is restarting ahead of schedule, and management expects to return to positive free cash flow by end of FY27.
This is a mixed picture for Hindalco shareholders. The near-term pressure from Oswego fires and heavy Bay Minette spending has elevated leverage significantly, but the underlying business shows strength with Q4 EBITDA per tonne up 10% YoY and a successful cost efficiency program delivering $200+ million run-rate savings. The path to deleveraging and improved shareholder returns depends on Oswego's quick recovery and Bay Minette's timely commissioning.