Author: InvestyWise News

Hindalco Industries’ subsidiary, Novelis Inc., has announced its Q2 FY26 financial results, reporting a net income of $163 million, up 27% YoY. Adjusted EBITDA stood at $422 million, a 9% decrease YoY. The company expects to restart its Oswego hot mill in December 2025. Novelis reaffirms its commitment to sustainable aluminum solutions.

Financial Performance

Novelis Inc. reported net income attributable to its common shareholder of $163 million, an increase of 27% year-over-year (YoY) for Q2 FY26. However, net income attributable to the common shareholder, excluding special items, was $113 million, a decrease of 37% YoY. Adjusted EBITDA totaled $422 million, representing a 9% decrease YoY.

Shipments and Sales

Rolled product shipments remained in line with the prior year at 941 kilotonnes. Net sales increased by 10% YoY to $4.7 billion, primarily driven by higher average aluminum prices.

Operational Update

Novelis anticipates restarting the Oswego hot mill in December 2025 following a fire incident in September 2025. The company is working to restore operations quickly and safely. The damage was primarily localized to the hot mill area.

Bay Minette Project

Construction continues at the greenfield rolling and recycling facility in Bay Minette, Alabama. Cold mill commissioning is expected to begin in Q4 FY26. The estimated total capital cost is approximately $5 billion.

Cost Efficiency Program

Novelis has increased its guidance under the global cost efficiency program and now expects to exit FY26 with a run-rate exceeding $125 million.

Net Leverage and Liquidity

The company’s net leverage ratio stood at 3.5x at the end of Q2 FY26, with total liquidity at $2.9 billion as of September 30, 2025.

Source: BSE

Hindalco Industries’ subsidiary, Novelis Inc., has announced its Q2 FY26 financial results, reporting a net income of $163 million, up 27% year-over-year. Adjusted EBITDA stood at $422 million. The company anticipates restarting its Oswego hot mill in December 2025. Novelis reaffirmed its commitment to cost efficiency and is progressing with its Bay Minette plant construction.

Q2 FY26 Financial Performance

Novelis Inc., a wholly-owned subsidiary of Hindalco Industries, reported a net income attributable to its common shareholder of $163 million, a 27% increase compared to the previous year. Excluding special items, net income was $113 million, a decrease of 37% year-over-year.

Key financial highlights include:

• Adjusted EBITDA: $422 million, down 9% YoY
• Rolled product shipments: 941 kilotonnes, consistent with the prior year
• Adjusted EBITDA per tonne shipped: $448, down 8% YoY

Oswego Plant Update

Novelis expects to restart the Oswego hot mill in December 2025, following a fire incident in September 2025. The company is working to restore operations and minimize customer disruption.

Strategic Initiatives and Outlook

The company’s net leverage ratio stood at 3.5x at the end of Q2 FY26, with total liquidity at $2.9 billion as of September 30, 2025. Novelis is advancing its cost efficiency program and expects it to drive better margins. They anticipate exiting FY26 with run-rate savings exceeding $125 million.

Bay Minette Plant

Construction of the greenfield rolling and recycling plant in Bay Minette, Alabama (US) is progressing, with cold mill commissioning expected to begin in Q4 FY26. The total capital cost is estimated to be approximately $5 billion.

Source: BSE

eClerx Services has announced the merger of its wholly-owned step-down subsidiaries, Eclipse Global Holdings Inc and Personiv Eclipse Inc, effective November 3, 2025. This strategic move aims to consolidate entities, streamline operations, and reduce administrative costs. The company received intimation regarding the merger on November 4, 2025.

Merger of Subsidiaries

eClerx Services has completed the merger of Eclipse Global Holdings Inc (formerly known as Eclipse Global Holdings LLC) with Personiv Eclipse Inc (formerly known as Personiv Contact Centres LLC). Both entities were wholly-owned step-down subsidiaries of eClerx Services.

Effective Date

The merger came into effect on November 3, 2025. The company received official intimation of the merger on November 4, 2025.

Financial Details (Year Ended March 31, 2025)

The turnover and profit after tax (in million Rupees) for the financial year ended March 31, 2025, are as follows:

Eclipse Global Holdings Inc: Turnover: 0.00, Profit after tax: 0.36

Personiv Eclipse Inc: Turnover: 0.00, Profit after tax: (26.20)

Note: The figures are converted at an exchange rate of 1 USD: INR 84.55805535.

Rationale

The primary reason for the merger is to consolidate entities, leading to a more efficient corporate structure and reduced administrative costs.

Source: BSE

Aditya Birla Fashion and Retail Limited has approved the grant of 46,77,115 stock options and performance stock units to eligible employees under its ESOP Scheme 2025. The grant includes 35,67,941 options and 11,09,174 performance stock units. These options and units were approved at a meeting held on November 4, 2025.

Stock Option and Unit Grant Details

Aditya Birla Fashion and Retail Limited (ABFRL) has granted stock options and performance stock units to its employees. The total grant amounts to 46,77,115 units, approved on November 4, 2025.

Allocation of Options and Units

The total grant is divided into 35,67,941 stock options and 11,09,174 performance stock units (PSUs). These are part of the company’s Employee Stock Option Plan (ESOP Scheme 2025).

Terms of the Scheme

The scheme is in terms of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Exercise Price

The exercise price for the options is ₹85.38 per option, based on the market price as of November 3, 2025. The exercise price for PSUs is ₹10 per PSU.

Vesting Period

33.33% of the options granted will vest each year, over a period of 3 years, beginning from the 1st anniversary of the grant date. 100% of the PSUs granted will vest at the end of the 3rd year from the date of grant.

Exercise Period

Stock options can be exercised within 5 years from the date of vesting.

Source: BSE

The Indian Hotels Company (IHCL) announced strong consolidated financial results for Q2 FY26, driven by diversified revenue streams and strategic partnerships. Revenue from operations increased by 12% to ₹2,041 Cr, while EBITDA rose by 16% to ₹653 Cr. The company remains confident in achieving double-digit revenue growth for the year, backed by strong fundamentals and strategic initiatives. Operational Efficiencies & margin improvements also contributed to this strong performance.

Key Highlights of Q2 FY26

IHCL has demonstrated a strong performance in Q2 FY26, marked by strategic expansions and robust financial results:

• Revenue from Operations: Increased by 12% to ₹2,041 Cr.
• EBITDA: Increased by 16% to ₹653 Cr, with an EBITDA margin of 30.8%.
• PAT: Reached ₹285 Cr, a 15% increase year-over-year.

Operational Milestones

Several key operational milestones were achieved during the quarter:

• The 75th operational Ginger Hotel opened in Ekta Nagar (151 keys).
• The 75th upscale/upper-upscale operational hotel, Vivanta Ekta Nagar (127 keys).
• The 250th operational hotel – Gateway Goa, Palolem.

Expansion and Growth

IHCL continues to expand its portfolio, maintaining a strong momentum of signings and openings. The company’s strategic initiatives include:

• Accelerated signings and openings, enhancing its presence across various segments.
• Gearing new businesses to scale up, leveraging strategic partnerships.
• Maintaining a healthy cash position to enable investments for future growth.

Strategic Partnerships

IHCL is focused on leveraging partnerships for leadership, unlocking the next phase of mid-scale growth with a portfolio of 240+ hotels across 29 states & UTs.

Financial Performance

The company achieved strong financial performance across key segments:

• Standalone Revenue: ₹1,166 Cr.
• EBITDA: ₹476 Cr, with an EBITDA margin of 40.8%.

Industry Outlook

IHCL benefits from consistent demand and limited supply in key cities, with industry tailwinds expected to continue. The company remains confident in delivering double-digit revenue growth, driven by:

• 18 Hotels expected to open in H2 (including 3 owned).
• Closure & consolidation of Clarks deal.
• Renovated assets back in operation with high yield.

Source: BSE

LIC Housing Finance’s Q2 FY26 earnings call highlighted a focus on balancing growth with profitability. While facing challenges from BT, the company aims for double-digit growth by year-end. Strategies include re-evaluating distribution models, exploring co-lending opportunities, and improving asset quality. Discussions covered NIM, PLR changes, and competitive intensity from PSU banks, with an emphasis on margin protection and controlled growth in construction finance.

Financial Performance Overview

LIC Housing Finance reported a revenue from operations of ₹7,163 crore, a 3% increase year-over-year. The outstanding loan portfolio reached ₹3,11,816 crore, growing by 6%. Individual housing loans constitute 85% of the total portfolio, amounting to ₹2,64,096 crore. Total disbursements for the quarter stood at ₹16,313 crore.

Key Financial Metrics

Net Interest Income (NII) was reported at ₹2,038 crore. The Net Interest Margin (NIM) for Q2 FY26 was 2.62%. Profit Before Tax (PBT) for the quarter reached ₹1,704.71 crore. Profit After Tax (PAT) for the quarter was ₹1,353.87 crore, a 2% year-over-year growth.

Asset Quality and Provisions

Stage-3 exposure stood at 2.51%. Total provisions reached ₹5,074 crore, reflecting a provision coverage ratio above 53%. A technical write-off of ₹133 crore was made during the quarter.

Funding and Costs

The cost of funds stood at 7.42%. Incremental cost of funds was 6.73%. The company has made a technical write-off of ₹133 crore, with recoveries from written-off loans amounting to ₹83 crore. The management expects asset quality to improve further.

Growth Strategies and Challenges

The company acknowledges challenges in balancing growth and spreads, particularly with Bullet Transfers (BT). There was 24% increase in disbursements from Q1 to Q2, but growth has been impacted by Bullet Transfers. The BT challenge is expected to subside as observed in October trends.

Strategic Initiatives

The company plans to enhance growth through alternative channels like lead business and strengthening LIC HFL Financial Services Limited (FSL). Focus is given to increasing agent productivity and developing direct business channels. The Board is guiding a comprehensive restructuring of the company, including distribution models. LICHFL is exploring co-lending opportunities to boost its portfolio. There are aims to target a construction finance channel of roughly ₹5,000 crores this year.

Competitive Landscape

The company noted intense competition from Public Sector Banks (PSBs), but aims to maintain margins over aggressive growth. It also seeks to gradually shift focus towards the self-employed segment, setting up a separate team for affordable housing.

Source: BSE