Hindalco profit drops 50.8% as Novelis fire costs bite

Hindalco Industries’ 50.8% drop in quarterly profit is a sharper signal about the industrial cycle than a single-company setback: higher aluminum prices were not enough to offset fire-related disruption costs at Novelis, the U.S. unit that sells rolled metal into beverage cans and automakers. The company’s consolidated net profit fell to Rs 2,597 crore in the March quarter, well below the Rs 4,312 crore analysts had expected, marking a second straight quarter of missed estimates and putting fresh attention on margins across the metals and manufacturing chain.

The headline profit decline sat alongside a much stronger operating picture. Hindalco said consolidated quarterly revenue rose to Rs 78,133 crore and EBITDA reached Rs 11,197 crore, both record highs for the quarter. Profit before exceptional items stood at Rs 5,796 crore, underscoring that the core business still generated healthy earnings before the Novelis shock flowed through the accounts. For the full year, revenue reached Rs 2,74,944 crore and consolidated EBITDA rose to Rs 38,097 crore, with profit before exceptional items at Rs 18,733 crore.

The pressure came from Novelis’ Oswego plant in New York, where two fires hit on September 16 and November 20, 2025. Novelis said the Oswego hot mill was expected to restart in late Q2 calendar 2026, followed by a ramp-up period. Hindalco also said Novelis’ Bay Minette cold mill in Alabama began commissioning in March 2026 and remained on track for completion in the second half of calendar 2026. That sequence matters for investors because it suggests the earnings hit is tied to a specific operational disruption rather than a broad deterioration in end-market demand.

Even so, the numbers have implications beyond Hindalco’s own books. Aluminum pricing, plant reliability and conversion margins help shape costs for downstream users in construction, autos and manufacturing, and the latest quarter shows how quickly an industrial chain can be pressured when supply is interrupted. Hindalco’s board still recommended a final dividend of Rs 5 per share for FY26, with a record date of July 10, 2026, a sign management remains confident in cash generation despite the fire costs. For now, the key question is whether Oswego comes back on schedule and whether the company can convert record revenue into cleaner earnings in the quarters ahead.