Hindalco Q3: Hindalco Industries, the metals flagship company of the Aditya Birla Group, on Thursday, February 12, reported a consolidated net profit of ₹2,049 crore for the quarter ended December 31, 2025 (Q3 FY26), down 45% YoY from the ₹3,735 crore profit logged in the year-ago period.
The company attributed the drop in profit to Oswego disruption due to fires.
The Novelis aluminium plant in Oswego, New York, experienced two significant fires in the hot mill area on September 16, 2025, and November 21, 2025.
Novelis Inc. is headquartered in Atlanta, Georgia, USA. It is a wholly owned subsidiary of Hindalco Industries.
On February 11, Novelis shared an update on the fire incidents.
Novelis estimates that 70%-80% of free cash flow and adjusted EBITDA impact is recoverable through insurance. The company estimates a total free cash flow impact of between $1.3 and $1.6 billion.
Novelis added that the estimated timeline to restart the Oswego hot mill is late Q2 calendar 2026. “Novelis is working in tight cooperation with customers and leveraging its global presence and external suppliers to mitigate customer impact,” it added.
Other key numbers
Hindalco’s revenue from operations rose 14% YoY to ₹66,521 crore, while its EBITDA, or operating profit, surged 5% YoY to ₹8,543 crore.
The company’s basic earnings per share (EPS) also dropped 45% YoY to ₹9.23 from ₹16.82 in the corresponding quarter of the previous fiscal year.
Commenting on the results, Satish Pai, Managing Director, Hindalco Industries, said, “Hindalco sustained its growth momentum amid global volatility, led by all-time high performance by its India business. This strength helped offset the impact of tariffs and the Oswego disruption, supported by disciplined cost management and operational efficiencies across segments.”
“We made strong progress across our downstream portfolio with the commissioning and ramping up of key projects, including Aditya FRP, battery foil, AC fin coating, and copper tubes, positioning us well for emerging growth opportunities,” Pai added.
Other key details
Pai added that Hindalco has entered the next phase of growth with a clear roadmap to expand upstream capacities across alumina, aluminium and copper, with aluminium capacity planned to scale up from 1.3 million tonnes to 1.7 million tonnes and copper smelting capacity from 400 KT to 700 KT.
Novelis’ underlying performance remains strong despite short-term capacity constraints from the Oswego disruption. The 600 KT Bay Minette project, on track for commissioning in the second half of FY27, will be a key growth driver.
“Sustainability remains central to our strategy, with Hindalco achieving the highest ESG score in the aluminium industry for the sixth consecutive year in the S&P Global CSA rankings,” Pai added.
Hindalco Industries: India business performance
The company’s India business continued to outperform on the back of favourable macros coupled with the company’s focus on resource security, value enhancement through new product development, and operational efficiencies.
“Novelis registered an improvement of 6% in EBITDA per tonne despite lower volumes due to the Oswego disruption, reflecting its focus on cost optimisation and operational excellence,” the press release added.
Segment-wise Performance in Q3 FY26
Novelis (as per US GAAP)
- Revenue at $4.2 billion, up 3%, driven by higher metal prices;
- Adjusted EBITDA at $348 million, down 5% due to the impact of lower volumes, tariffs and disruption due to Oswego fires;
- Cost take-out run rate at more than $150 million by the end of FY26;
- Bay Minette and other strategic investment projects advancing well;
- Oswego plant to restart hot mill in Q1 FY27.
Aluminium (India)
- Quarterly upstream revenue at ₹10,620 crore, up 6%;
- Aluminium upstream EBITDA at ₹4,832 crore, up 14%, driven by higher volumes and realisations;
- Aluminium upstream EBITDA per tonne at $1,572, up 6%, with margins of 45%;
- Aditya Aluminium smelter expansions are on track with expected commissioning in FY29.
Aluminium Downstream
- Sales of Aluminium Downstream at 108 KT, up 9%;
- Downstream revenue at ₹3,909 crore, up 22%;
- Record Aluminium Downstream EBITDA at ₹233 crore, up 55% on account of higher shipments and favourable product mix;
- Downstream EBITDA per tonne at $241, up 35%.
Copper
- Copper metal sales at 122 KT, up 1%;
- Copper Continuous Cast Rod (CCR) sales at 82 KT, down 14% due to a weaker domestic market on account of higher LME and higher channel inventories;
- Revenue at ₹18,233 crore, up 33%, due to higher copper prices;
- Maintained EBITDA of ₹595 crore despite declining TC/RCs market;
- The Copper Tubes project progresses to the commissioning phase;
- Construction of the copper recycling project is progressing on schedule.