Hindalco provides an update on the fire incident at its Novelis Oswego Plant. The company estimates 70-80% insurance recoverability. Q2FY26 recognized $21 million in related charges, with projected FY2026 negative free cash flow impact of ~$550-650 million. Restoration efforts are underway, targeting a restart by end-December 2025.
Insurance and Financial Impacts
Hindalco reports that it anticipates recovering approximately 70-80% of losses through insurance claims related to the fire at the Novelis Oswego plant. However, the company recognized $21 million in associated charges during Q2FY26.
The company estimates a negative free cash flow impact of approximately ~$550-650 million for the FY2026 fiscal year, which includes an Adjusted EBITDA impact of ~$100-150 million.
Restoration and Restart Timeline
Extensive efforts continue to restore operations at the Oswego plant to pre-incident levels. Hindalco anticipates the Hot Mill to be operational by the end of December 2025. Following the restart, the company expects a production ramp-up period of 4-6 weeks.
Source: BSE
