{"id":180393,"date":"2026-02-11T07:27:54","date_gmt":"2026-02-11T12:27:54","guid":{"rendered":"https:\/\/alphastreet.com\/india\/?p=180393"},"modified":"2026-02-11T07:27:57","modified_gmt":"2026-02-11T12:27:57","slug":"hindalco-industries-limited-flags-novelis-q3-fy26-loss-after-oswego-fires-disrupt-shipments-ebitda-per-tonne-improves","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/hindalco-industries-limited-flags-novelis-q3-fy26-loss-after-oswego-fires-disrupt-shipments-ebitda-per-tonne-improves\/","title":{"rendered":"Hindalco Industries Limited flags Novelis Q3 FY26 loss after Oswego fires disrupt shipments; EBITDA per tonne improves"},"content":{"rendered":"\n

Hindalco Industries Limited (NSE: HINDALCO, BSE: 500440)<\/strong> said its wholly owned subsidiary Novelis Inc.<\/strong> reported a net loss in the third quarter of fiscal 2026, primarily due to production disruptions and exceptional losses linked to two fires at the Oswego, New York plant, even as underlying operating efficiency improved, according to Novelis\u2019 Q3 FY26 earnings release and presentation.<\/p>\n\n\n\n

Q3 FY26 performance at Novelis<\/h2>\n\n\n\n

For the quarter ended Dec. 31, 2025, Novelis\u2019 net sales rose 3% year on year to $4.2 billion<\/strong>, supported by higher average aluminum prices. However, rolled product shipments fell 11% to 809 kilotonnes<\/strong>, with management estimating a 72 kilotonne negative impact<\/strong> from the Oswego production disruption.<\/p>\n\n\n\n

Adjusted EBITDA declined 5% year on year to $348 million<\/strong>, reflecting an estimated $54 million pre-tax impact<\/strong> from the Oswego fires and $34 million from tariffs<\/strong>. Despite the disruption, Adjusted EBITDA per tonne improved 6% to $430<\/strong>, aided by cost efficiencies, favorable recycling benefits and pricing actions.<\/p>\n\n\n\n

Net loss attributable to Novelis\u2019 common shareholder was $160 million<\/strong>, compared with net income of $110 million a year earlier. The loss included $327 million in pre-tax losses related to the Oswego fires<\/strong>, alongside unrealized derivative losses.<\/p>\n\n\n\n

Cash flows, leverage and liquidity<\/h2>\n\n\n\n

For the first nine months of FY26, net cash used in operating activities was $90 million<\/strong>, compared with an inflow of $263 million a year earlier, largely due to the impact of the Oswego disruption. Adjusted free cash flow was a negative $1.64 billion<\/strong>, driven by higher capex and working-capital outflows.<\/p>\n\n\n\n

As of Dec. 31, 2025, total liquidity stood at $2.6 billion<\/strong>, including $825 million in cash<\/strong> and $1.7 billion of undrawn committed facilities<\/strong>. Net leverage rose to 3.7x<\/strong> trailing twelve months Adjusted EBITDA. In December, Novelis received a $750 million equity infusion from its parent, Hindalco<\/strong>, to support liquidity during the recovery period.<\/p>\n\n\n\n

Oswego plant disruption and recovery timeline<\/h2>\n\n\n\n

Two significant fires at Novelis\u2019 Oswego, New York<\/strong> facility in September and November 2025 disrupted hot mill operations. The incidents were contained to the hot mill area, with no injuries reported. Novelis said it is leveraging its global footprint and third-party suppliers to mitigate customer impact. The company expects to restart the Oswego hot mill in late Q2 of calendar 2026<\/strong>.<\/p>\n\n\n\n

Management estimates the total free cash flow impact of the fires, before insurance, at $1.3\u2013$1.6 billion<\/strong>, with 70%\u201380% potentially recoverable through insurance<\/strong> over time.<\/p>\n\n\n\n

Segment and market trends<\/h2>\n\n\n\n

Despite the temporary capacity constraints, Novelis said demand for aluminum products remains resilient<\/strong>, with particular strength in beverage packaging<\/strong>, its largest end market. Adjusted EBITDA per tonne rose despite tariffs and disruption<\/strong>, reflecting ongoing cost efficiency initiatives and improved scrap economics.<\/p>\n\n\n\n

Regionally, North America shipments were lower due to the Oswego outage, while Europe saw improved shipments and EBITDA on stronger beverage packaging and aerospace demand. Asia and South America reported mixed trends in volumes and margins.<\/p>\n\n\n\n

Strategic investments and outlook<\/h2>\n\n\n\n

Novelis continues to advance its greenfield rolling and recycling plant at Bay Minette, Alabama<\/strong>, with cold mill commissioning expected to begin in March 2026 and full plant commissioning targeted in the second half of calendar 2026. The facility is expected to add 600 kilotonnes of finished goods capacity<\/strong>, supporting long-term growth in beverage packaging and automotive segments.<\/p>\n\n\n\n

Management reiterated its focus on cost efficiency, tariff mitigation and restoring full capacity at Oswego, while maintaining disciplined capital deployment.<\/p>\n\n\n\n

Summary<\/h2>\n\n\n\n

Novelis posted a Q3 FY26 net loss due to exceptional fire-related impacts and shipment disruptions at Oswego, while underlying operating efficiency improved, as reflected in higher EBITDA per tonne. Liquidity was bolstered by a $750 million equity infusion from Hindalco. With recovery at Oswego underway and capacity expansion at Bay Minette progressing, the group expects operating normalization over the coming quarters, subject to execution timelines and insurance recoveries.<\/p>\n","protected":false},"excerpt":{"rendered":"

Hindalco Industries Limited (NSE: HINDALCO, BSE: 500440) said its wholly owned subsidiary Novelis Inc. reported a net loss in the third quarter of fiscal 2026, primarily due to production disruptions and exceptional losses linked to two fires at the Oswego, New York plant, even as underlying operating efficiency improved, according to Novelis\u2019 Q3 FY26 earnings […]<\/p>\n","protected":false},"author":2409,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5,1941,392],"tags":[16278,16280,16279],"class_list":["post-180393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest","category-stock-analysis","category-earnings","tag-aluminium-manufacturing-industry","tag-metal-recycling-and-packaging","tag-rolled-aluminium-products"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":128258,"url":"https:\/\/alphastreet.com\/india\/hindalco-q3-fy-2022-research-tear-sheet\/","url_meta":{"origin":180393,"position":0},"title":"Hindalco Q3 FY 2022 Research Tear Sheet","author":"sreerupa","date":"March 14, 2022","format":false,"excerpt":"Hindalco is a subsidiary of Aditya Birla Group. It is an Indian\u00a0aluminum\u00a0and\u00a0copper\u00a0manufacturing company. It was incorporated in the year 1958. The headquarter is located in Mumbai, Maharashtra India. As per data Hindalco is one of the world's largest aluminum rolling companies and one of the biggest producers of primary aluminum\u2026","rel":"","context":"In "Research Summary"","block_context":{"text":"Research Summary","link":"https:\/\/alphastreet.com\/india\/category\/research-summary\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":166997,"url":"https:\/\/alphastreet.com\/india\/hindalco-q3-2024-2025-call-highlights-coal-strategy-alumina-expansion-strategic-expansion-plans\/","url_meta":{"origin":180393,"position":1},"title":"HINDALCO Q3 2024-2025 Call Highlights: Coal Strategy, Alumina Expansion & Strategic Expansion Plans!","author":"Praveen","date":"February 20, 2025","format":false,"excerpt":"Hindalco Industries Ltd., an Indian aluminium and copper manufacturing company, and a subsidiary of the Aditya Birla Group, in its Q3 earnings call outlined major expansion plans including the Meenakshi mine acquisition, potentially reducing coal costs by 30%, INR40,000 crore investment in India, and Novelis's $6 billion three-year CapEx. Key\u2026","rel":"","context":"In "Concall Highlights"","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":154491,"url":"https:\/\/alphastreet.com\/india\/hindalco-industries-worlds-largest-aluminum-recycling-company\/","url_meta":{"origin":180393,"position":2},"title":"Hindalco Industries – World’s Largest Aluminum Recycling Company","author":"Chirag Gupta","date":"August 30, 2023","format":false,"excerpt":"FY24 has started on a promising note. Our focus on expanding our value-added portfolio and operational efficiencies has enabled us to deliver a sustained performance in the face of continued macroeconomic pressures. An enhanced product mix saw the Aluminium India Downstream Business generating higher value, with Q1 EBITDA increasing by\u2026","rel":"","context":"In "Analysis"","block_context":{"text":"Analysis","link":"https:\/\/alphastreet.com\/india\/category\/stock-analysis\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/iStock-1448587397.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/iStock-1448587397.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/iStock-1448587397.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":140947,"url":"https:\/\/alphastreet.com\/india\/hindalco-industries-limited-q3-fy23-net-profit-down-by-63\/","url_meta":{"origin":180393,"position":3},"title":"Hindalco Industries Limited Q3 FY23; Net Profit Down By 63%","author":"Hardik Bhandare","date":"February 10, 2023","format":false,"excerpt":"Hindalco Industries Limited (NSE: HINDALCO) reported Revenue from Operations for Q3 FY23 of \u20b953,151 Crore up from \u20b950,272 Crore year on year, a growth of 6%. The Revenue was driven by Novelis segment which increased by 8% up to \u20b934,685 Crore. Consolidated Net Profit of \u20b91,362 Crore, down 63% from\u2026","rel":"","context":"In "AlphaGraphs"","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/cf5c1e86-a3ff-40a7-a61f-6e1e4f174683-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/cf5c1e86-a3ff-40a7-a61f-6e1e4f174683-scaled.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/cf5c1e86-a3ff-40a7-a61f-6e1e4f174683-scaled.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/cf5c1e86-a3ff-40a7-a61f-6e1e4f174683-scaled.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/cf5c1e86-a3ff-40a7-a61f-6e1e4f174683-scaled.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/cf5c1e86-a3ff-40a7-a61f-6e1e4f174683-scaled.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":132751,"url":"https:\/\/alphastreet.com\/india\/hindalco-industries-limited-q1fy23-net-profit-at-all-time-high-of-rs-4119-crore\/","url_meta":{"origin":180393,"position":4},"title":"Hindalco Industries Limited Q1FY23; Net Profit at all-time high of Rs.4,119 crore","author":"Hardik Bhandare","date":"August 10, 2022","format":false,"excerpt":"In Q1 FY23, Hindalco Industries Limited (NSE: HINDALCO) again reported its highest net profit, topping its previous high mark in Q4 FY22. The company's consolidated PAT reached a record high of Rs. 4,119 crore, up 48% year over year. First-quarter total revenue increased 40% year over year to Rs 58,018\u2026","rel":"","context":"In "AlphaGraphs"","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/08\/0ee64d0c-5d1f-406b-a947-29f24361dde9-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/08\/0ee64d0c-5d1f-406b-a947-29f24361dde9-scaled.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/08\/0ee64d0c-5d1f-406b-a947-29f24361dde9-scaled.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/08\/0ee64d0c-5d1f-406b-a947-29f24361dde9-scaled.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/08\/0ee64d0c-5d1f-406b-a947-29f24361dde9-scaled.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/08\/0ee64d0c-5d1f-406b-a947-29f24361dde9-scaled.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":173130,"url":"https:\/\/alphastreet.com\/india\/hindalco-green-metal-giant-12-upside\/","url_meta":{"origin":180393,"position":5},"title":"Hindalco: Green Metal Giant, 12% Upside","author":"Divyansh_Kasana","date":"January 9, 2026","format":false,"excerpt":"Executive Summary Hindalco continues to demonstrate resilience and growth as a leading integrated metals player, underpinned by its dual engine of robust Indian operations (Aluminium & Copper) and the steady performance of its US-based subsidiary, Novelis. The company reported strong Q2FY26 results, with consolidated revenue growing 13.5% YoY to INR\u2026","rel":"","context":"In "LATEST"","block_context":{"text":"LATEST","link":"https:\/\/alphastreet.com\/india\/category\/latest\/"},"img":{"alt_text":"HINDALCO","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/12\/images-1.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/180393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/2409"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=180393"}],"version-history":[{"count":1,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/180393\/revisions"}],"predecessor-version":[{"id":180394,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/180393\/revisions\/180394"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/125416"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=180393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=180393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=180393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}