Aditya Birla Group Company Hindalco Subsidiary Novelis Reports Q4FY26 Loss Amid Oswego Plant Fire Impact
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Novelis, a wholly owned subsidiary of Hindalco Industries Ltd, reported Q4FY26 net sales growth of 4 per cent YoY to USD 4.8 billion, while posting a net loss of USD 84 million due to losses related to the Oswego plant fires. The company also stated that its Bay Minette aluminium plant commissioning remains on track for CY2026.
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The Indian equity markets ended lower on Tuesday, with the benchmark Nifty 50 index declining 0.14 per cent to 23,618.00. Metal stocks remained in focus amid global commodity price movements and developments across the aluminium and industrial manufacturing sectors. In this segment, Hindalco Industries Ltd ended 0.46 per cent lower at Rs 1,048.30 after its wholly owned subsidiary Novelis Inc announced its Q4FY26 and full-year FY26 financial results.
Novelis Q4FY26 Results
Novelis reported net sales of USD 4.8 billion in Q4FY26 as against USD 4.59 billion reported in Q4FY25, registering a growth of around 4 per cent YoY. Rolled product shipments stood at 844 kilotonnes during the quarter compared to 957 kilotonnes reported in the corresponding quarter previous year, reflecting a decline of around 12 per cent YoY.
The company reported a net loss attributable to its common shareholder of USD 84 million in Q4FY26 as against net income of USD 294 million reported in Q4FY25. The decline was primarily due to losses related to the Oswego plant fires during the year. Excluding special items, net income attributable to shareholders stood at USD 227 million, down around 13 per cent YoY.
Adjusted EBITDA for the quarter stood at USD 459 million as against USD 473 million reported in Q4FY25, reflecting a decline of around 3 per cent YoY. Adjusted EBITDA per tonne shipped improved around 10 per cent YoY to USD 544 during Q4FY26.
Novelis FY26 Annual Performance
For the financial year ended March 31, 2026, Novelis reported net sales of USD 18.4 billion as against USD 17.1 billion reported in FY25, registering a growth of around 7 per cent YoY. Rolled product shipments stood at 3,557 kilotonnes during FY26 compared to 3,757 kilotonnes reported in FY25, reflecting a decline of around 5 per cent YoY.
Net income attributable to shareholders stood at USD 15 million during FY26 compared to USD 683 million reported in FY25, registering a sharp decline of around 98 per cent YoY. Adjusted EBITDA came in at USD 1.65 billion during FY26 as against USD 1.80 billion reported in the previous financial year.
The company stated that FY26 performance was impacted by the Oswego plant fires and tariff-related pressures. Novelis added that production interruptions caused an estimated negative impact of USD 104 million on Adjusted EBITDA during FY26.
Oswego Plant Fire Impact
Novelis stated that two separate fires occurred at its Oswego, New York plant during September and November 2025. The company said both incidents were contained to the hot mill area and there were no injuries reported during either event.
The company added that commissioning activities at the Oswego plant are progressing and the hot mill is expected to restart within the next few weeks, ahead of the earlier estimated timeline of end-June 2026.
Strategic Developments
Novelis stated that commissioning of the cold mill at its Bay Minette, Alabama greenfield aluminium plant commenced during March 2026. The company said the full project commissioning remains on track during the second half of calendar year 2026.
The company also stated that it exited FY26 with over USD 200 million in annualised run-rate cost savings from its global cost efficiency programme and now expects total savings of USD 350 million to USD 400 million by the end of FY28.
Management Commentary
“We begin the new fiscal year energized by the strength of the underlying business and confident in our ability to capture strong market demand for high-recycled-content, low carbon aluminum,” said Steve Fisher, President and CEO, Novelis Inc.
“As anticipated, net leverage is experiencing some temporary pressure driven by the Oswego fires and capital spending at Bay Minette,” said Dev Ahuja, Executive Vice President and CFO, Novelis Inc.
About Hindalco Industries
Hindalco Industries Ltd is the metals flagship company of the Aditya Birla Group and is engaged in aluminium and copper manufacturing operations across domestic and international markets. Through its subsidiary Novelis Inc, the company operates in aluminium rolling and recycling businesses globally.
What are your views on Novelis’ FY26 performance and Bay Minette expansion project? Share your thoughts in the comments below.
Disclaimer: This article is for informational purposes only and not investment advice.