Metals big Hindalco Industries Ltd missed earnings estimates within the December quarter, singed by back-to-back fires at its US crown jewel Novelis Inc.
The Aditya Birla Group flagship reported an virtually 45% drop in internet revenue attributable to house owners at ₹2,049 crore, down from ₹3,735 crore a 12 months earlier, and properly wanting the ₹4,141-crore common estimate from a Bloomberg ballot.
The 2 fires on the Novelis plant in Oswego occurred on 16 September, 2025, and 20 November, 2025, disrupting aluminium provides to the automotive trade and may makers. Hindalco’s revenue decline stemmed primarily from ₹2,610 crore in one-off bills linked to the Oswego disruption.
Novelis accounted for 57% of Hindalco’s income within the December quarter. Hindalco reported a 14% bounce in consolidated income from operations of Rs.66,521 crore on the again of upper copper and aluminium gross sales within the home market. Ebitda rose 5% to Rs.8,543 crore.
On Wednesday, Hindalco had knowledgeable exchanges that its 2026 money movement will likely be hit by $1.3-1.6 billion because of the Novelis fires.
Restoration plans
The corporate expects to get well as a lot as 70-80% of the hearth affect by means of insurance coverage, and its sizzling roll mill is anticipated to start out operations by the primary quarter of FY27, Satish Pai, managing director of Hindalco, stated at a media briefing.
Pai additionally defined that sturdy efficiency in India and better aluminium and copper costs helped offset the affect of the disruption on the overseas subsidiary.
“When you have a look at this very sturdy India efficiency, which I feel goes to proceed strongly into This fall, this helped us mitigate to some respects the Novelis efficiency,” Pai stated.
Pai additionally stated that Novelis’ efficiency is anticipated to enhance within the fourth quarter attributable to improved scrap spreads and value slicing efforts. Scrap unfold is the distinction between the promoting value of aluminium merchandise and the price of scrap aluminium used to make them. Novelis solely makes use of scrap.
“We’re going to put in $1 billion of fairness by means of AV Minerals into Novelis,” Pai stated, including this may assist the corporate for the following six to eight months.
Within the second quarter, Pai had guided for an fairness infusion of $750 million into Novelis, to be raised as debt by means of its subsidiary in Holland, AV Minerals (Netherlands).
Pai reiterated that it’s centered on finishing the Bay Minette undertaking in Alabama, getting Oswego again up and operating. Bay Minette is the positioning of a brand new $5.5 billion low-carbon aluminum recycling and rolling plant being constructed by Novelis Inc. The corporate is planning an October commissioning of this undertaking.
India beneficial properties offsets stress
Transferring ahead, India will proceed to drive progress, with some spillover affect of the Novelis incident.
“When you have a look at this very sturdy India efficiency, which I feel goes to proceed strongly into This fall,” Pai stated, including “Novelis efficiency will enhance whereas there’ll nonetheless be the affect of Oswego and as soon as the mill begins in June from subsequent 12 months, you’re going to see a full Novelis restoration.”
Hindalco’s India enterprise did properly primarily as a result of aluminium costs had been excessive, stated Suman Kumar, assistant vice-president for metals and mining at brokerage Philip Capital. “Because the firm has its personal bauxite mines absolutely built-in, its prices stayed regular; so, when costs went up, earnings improved. Copper was not the principle purpose — aluminium drove the beneficial properties.”
“For Novelis, the core enterprise is okay. The loss occurred due to one-time points just like the Oswego plant fireplace and tariff affect. When you take away these, efficiency was really a lot better,” Kumar stated. Because the Oswego plant will restart in June, and capability will enhance in FY26, the administration expects Novelis to enhance from right here and believes the worst part is over, he added.