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Informist, Wednesday, Aug. 5, 2026

 

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--Hindalco arm Novelis Apr-Jun consol net income $164 mln vs $96 mln yr ago
--Hindalco arm Novelis Apr-Jun consol net sales $5.79 bln vs $4.72 bln yr ago
--Hindalco arm Novelis Apr-Jun adjusted EBITDA $516 mln vs $416 mln yr ago
--Hindalco arm Novelis Apr-Jun adjusted EBITDA/tn $563 vs $432 yr ago
--Hindalco arm Novelis Q1 rolled product shipments 916,000 tn, dn 5% on yr
--Novelis: Oswego hot mill restarted operations in early June
--Novelis: Ramping up production at Oswego hot mill
--Novelis: Net sales in Apr-Jun rise on year on higher aluminium prices
--Novelis: Volumes in Apr-Jun were hit due to disruptions at Oswego plant
--Novelis: Q1 net income, excluding special items, at $265 mln, up 128% on yr
--Novelis: Net cash outflow of $455 mln in Q1 vs inflow of $105 mln year ago

 

By Rajesh Gajra and Shakshi Jain

 

MUMBAI/NEW DELHI – A sharp rise in aluminium prices, lower aluminium scrap prices, and cost efficiencies were behind the strong bottom-line performance of US-based Novelis Inc., a major contributing subsidiary of Hindalco Industries Ltd., for the June quarter.

 

Novelis, which recycles aluminium scrap and sells aluminium-rolled products, reported a jump of 71% on year in its consolidated net income to $164 million. Excluding special items, the company's net income surged 128% on year to $265 million.

 

This came on the back of 23% year-on-year increase in the company's consolidated net sales to $5.79 billion for the June quarter. The net sales were up despite the rolled products volume declining 5% on year to 916,000 tonnes.

 

The company said in an earnings press release that the net income rise "was due primarily to favorable metal price lag resulting from higher metal prices, partially offset by $265 million in pre-tax net losses related to the Oswego (factory) fires."

 

The company attributed the sales growth for the quarter primarily to higher average aluminium prices, partially offset by the 5?crease in total rolled product shipments for the three months. The decline in shipments was mainly due to an estimated 33,000 tonnes worth of negative shipment impact related to the Oswego production disruption from the fires in the financial year 2025-26 (Apr-Mar), it added.

 

In September 2025, a fire had broken out at the Novelis plant in Oswego, New York State. In November, a second significant fire had occurred at the same plant, in a location where repair work from the September fire was still going on. Both fires were contained to the hot mill area and the affected mill resumed operations in early June. Production activities are being ramped up to meet pent-up demand and normalise shipments, as per the company.

 

"Momentum continues to build, buoyed by the successful restart of the Oswego hot mill in early June. At the same time, the initial commissioning of key assets at Bay Minette represents another important step in strengthening our operational capabilities and positioning Novelis for its next phase of growth," President and Chief Executive Officer Steve Fisher was quoted as saying in a press release.

 

The company's adjusted earnings before interest, tax, depreciation, and amortisation for the June quarter added up to $516 million, up 24% year-on-year. The adjusted EBITDA per tonne shipped was $563, up 30% on year.

 

Novelis reported a net cash outflow of $455 million for operating activities in the June quarter compared with $105 million for the corresponding quarter of FY26. This was largely related to higher working capital from rising aluminium prices and impacts from the Oswego fires, net of insurance recoveries, it said.

 

Wednesday, shares of Hindalco Industries ended at INR 1,040 on the National Stock exchange, up almost 2% from Tuesday.  End

 

US$1 = INR 95.11

 

Edited by Rajeev Pai

 

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