Novelis Inc. announced its second quarter fiscal year 2027 results, reporting a 29% year-over-year increase in net income to $210 million. Net sales surged 25% to $5.9 billion, primarily due to higher aluminum prices. Adjusted EBITDA also saw a significant jump of 20% to $508 million, boosted by insurance recoveries related to the 2025 Oswego fires.
Strong Q2 FY27 Financial Performance
Novelis Inc., a subsidiary of Hindalco Industries Limited, has reported robust financial results for the second quarter of fiscal year 2027. The company’s net income attributable to its common shareholder saw a substantial increase of 29% compared to the prior year, reaching $210 million. Excluding special items, net income also grew by 29% year-over-year to $146 million.
Net sales for the quarter climbed by 25% year-over-year to $5.9 billion. This growth was primarily driven by higher average aluminum prices, although partially offset by a 2% decrease in total rolled product shipments, which amounted to 919 kilotonnes. Shipments for beverage packaging and aerospace saw increases, while automotive and specialty product shipments declined.
Key Financial Highlights and Operational Updates
Adjusted EBITDA for the second quarter of fiscal year 2027 rose by 20% to $508 million. This improvement was significantly influenced by $39 million in business interruption insurance recoveries related to the 2025 Oswego fires and favorable metal benefits. Adjusted EBITDA per tonne shipped increased by 23% to $553.
The company also noted that the Bay Minette cold mill produced its first coil in September, marking a significant milestone. Novelis continues to focus on operational efficiency and market demand, anticipating a return to positive free cash flow by the end of FY27.
Balance Sheet and Liquidity
As of September 30, 2026, Novelis reported total liquidity of $2.0 billion, comprising $1.3 billion in cash and cash equivalents and $761 million in availability under committed credit facilities. The company’s net leverage ratio stood at 4.7x.
Forward-Looking Statements
The company’s outlook remains positive, with expectations of reduced capital spending and continued cost discipline driving a return to positive free cash flow and the beginning of a deleveraging cycle toward the end of the fiscal year.
Source: BSE
