Hindalco reported a consolidated business segment EBITDA increase of 6% YoY to INR 8,762 crores for Q3 FY26. The India business excelled with EBITDA rising 10% YoY. While consolidated PAT was down 45% due to the Novelis Oswego plant fire, underlying performance showed an 8% YoY PAT growth. The company remains committed to long-term targets while navigating temporary operational challenges.
Q3 FY26 Performance Overview
Hindalco Industries announced its results for the third quarter of Financial Year 2026, reporting that consolidated business segment EBITDA grew 6% year-on-year to INR 8,762 crores this quarter. Consolidated Profit After Tax (PAT) saw a year-on-year decline of 45% to INR 2,049 crores, primarily impacted by exceptional items related to the Novelis Oswego plant fires. Excluding this impact, the consolidated PAT would have been INR 4,051 crores, marking an 8% year-on-year increase.
India Business Highlights
The Hindalco India business demonstrated robust performance, with segment EBITDA rising 10% year-on-year to INR 5,660 crores. Quarterly PAT reached a record high of INR 3,581 crores, up 24% year-on-year.
Upstream and Downstream Performance
- India Upstream Aluminum: Shipments were up 2% YoY, with revenues up 6% YoY. Quarterly EBITDA increased by 14% YoY to INR 4,832 crore, delivering an EBITDA of $1,572 per ton.
- Indian Downstream Aluminum: Quarterly shipments rose 9% YoY to 108 Kt, driving an EBITDA of INR 233 crores, a 55% YoY increase. EBITDA per ton stood at $241 a ton, up 35% YoY.
- Copper Business: Metal shipments were up 1% YoY at 122 Kt. Quarterly copper EBITDA was INR 595 crores, down 23% YoY due to lower TC/RCs and concentrate mix.
Novelis Performance Update
Novelis recorded shipments of 881 Kt, reflecting a 3% year-on-year decline after adjusting for 72 Kt lower shipments due to the Oswego fires. The adjusted EBITDA was $436 million, equating to $495 per ton, which is up 22% year-on-year, after excluding the impact of $54 million from Oswego fires and $34 million from tariffs this quarter. The projected Bay Minette hot mill commissioning remains scheduled for the second half of FY ’27, with the 600 Kt greenfield facility set for completion this year.
Management noted that the underlying adjusted EBITDA per ton, excluding the Oswego impact, would have been nearly $500. The company aims to recover the short-term impact and reaffirmed its long-term guidance of $600 per ton.
Capital Structure and Outlook
Consolidated net debt to EBITDA stood at 1.73x at the end of December 2025. Hindalco’s subsidiary, AV Minerals, raised $800 million, of which $750 million was infused into Novelis as equity in December 2025. The company plans to raise an additional $200 million shortly.
The company is committed to maintaining net leverage around 2x at the consolidated level. In terms of cost efficiency, the FY ’26 exit savings run rate target has been increased from $75 million to $125 million, now targeting $150 million.
Macro and Industry Environment
Global growth is expected to remain steady at 3.3% in 2025 and 2026, supported by technological investment tailwinds. In contrast, India’s momentum remains strong, with Real GDP rising 8.2% in Q2. The RBI projects FY ’26 growth at 7.3%. Aluminum prices strengthened this quarter, with global production and consumption each growing around 2% in Calendar Year ’25, resulting in a broadly balanced market.
ESG and Sustainability Progress
Hindalco scored 89 out of 100 in the S&P Global CSA 2025. Waste management saw 82% of total waste recycled or reused this quarter. Renewable energy capacity stood at 418 Megawatts, with plans to add another 103 Megawatts next quarter. Biodiversity efforts included planting 70,000 saplings across operational sites.
Closing Remarks
Management emphasized that the next 6 months are critical for getting the Oswego unit up and running and commissioning the Bay Minette hot mill in the second half of the year. Following these milestones, the company is confident of seeing very strong performance from Novelis going forward. India business is expected to have a very strong Q4.
Source: BSE
