Hindalco Industries reported a strong Q2 FY26 with EBITDA up 6% year-on-year to INR9,104 crores and net profit after tax up 21% to INR4,741 crores. Novelis’ adjusted EBITDA was $476 million. The company is progressing well on its $300 million cost reduction program and remains committed to future growth with significant capital expenditure plans. India’s aluminum demand grew by 8% year-on-year.
Financial Performance
Hindalco Industries showcased a robust financial performance for Q2 FY26:
- Consolidated EBITDA: Up 6% year-on-year at INR9,104 crores.
- Net Profit After Tax: Increased by 21% year-on-year to INR4,741 crores.
- Novelis Shipments: 941 Kt.
- Novelis Adjusted EBITDA: $476 million ($506 per ton, excluding tariff impact).
- Hindalco India Business EBITDA: Up 15% year-on-year to INR5,419 crores.
- Net Debt to EBITDA: Below 2.
Novelis Performance and Outlook
Novelis is making strides in mitigating tariff impacts and reducing costs:
- Achieved a run rate of $125 million in cost efficiency initiatives.
- Committed to a $300 million structural cost reduction program by FY28.
- Bay Minette project progressing well with a revised total project cost of around $5 billion.
India Business Highlights
The India business demonstrated strong growth and efficiency:
- Upstream Aluminium EBITDA: Up 22% year-on-year, with an EBITDA per ton of $1,521.
- Downstream Aluminium: Record performance with EBITDA up 69% year-on-year.
- Copper Business EBITDA: INR634 crores.
- Q2 FY26 aluminium demand projected at 1.5 million tons, an 8% growth year-on-year.
- Domestic copper market demand rose by 11% year-on-year.
Strategic Initiatives and Future Growth
Hindalco is focused on strategic initiatives to drive future growth:
- Capacity expansions across Novelis and India businesses.
- Maintaining consolidated net leverage below 2.
- Doubling down on capacity expansion across aluminium and copper upstream.
- Driving a fourfold increase in downstream EBITDA by FY30 in India.
Sustainability
- LTIFR: 0.27.
- Total waste generated recycled/reused: 78%.
- Bauxite residue recycling: 104%.
- Ash recycling: 96%.
- Copper slag recycling: 119%.
Source: BSE
