More Stories

Informist, Wednesday, Feb. 11, 2026

 

Please click here to read all liners published on this story

--Hindalco arm Novelis Q3 consol net loss $160 mln vs income $110 mln yr ago 
--Hindalco arm Novelis Q3 consol net sales $4.19 bln vs $4.08 bln yr ago 
--Hindalco arm Novelis Q3 adjusted EBITDA $348 mln vs $367 mln yr ago 
--Hindalco arm Novelis Q3 adjusted EBITDA/tn $430 vs $406 year ago 
--Hindalco arm Novelis Q3 rolled product shipments 809,000 tn, dn 11% on yr 
--Novelis: Oct-Dec EBITDA down on year due to Oswego fires, tariffs 
--Novelis: Expect to restart Oswego hot mill in late Apr-Jun

 

MUMBAI - Novelis Inc. reported a consolidated net loss for the December quarter. The Hindalco Industries Ltd.'s US subsidiary has attributed the loss mainly to the disruption in production caused by a fire at its aluminium plant at Scriba, Oswego County, New York. The company's net sales grew marginally on year owing to favourable aluminium prices.

 

The company incurred a consolidated net loss of $160 million for the December quarter, as against a net profit of $110 million a year ago. The loss was primarily on account of the disruption in production at the Oswego County plant and pre-tax net losses of $327 million due to the fire. The bottom line was squeezed further by unrealised losses on derivatives in the December quarter. These losses were partially offset by the favourable metal price lag on the back of rising average local market aluminium premiums.

 

The company's consolidated net sales grew to $4.19 billion, up 3% from a year ago. Novelis attributed the marginal rise in top line to higher-than-average aluminium prices. However, the favourable prices were partly offset by an 11?ll in total rolled product shipments.

 

The top line was also limited by an estimated 72 kilotonne negative shipment impact related to the disruption in production at the Oswego County plant. The disruption led to a fall in shipments to automotive, beverage packaging, and specialties markets. However, higher aerospace shipments partially offset the negative impact, the company said in its earnings presentation.

 

Novelis's consolidated adjusted earnings before interest, tax, depreciation, and amortisation for the December quarter were $348 million, down over 5% from a year ago. The EBITDA saw a negative impact of $54 million from the Oswego plant fires and $34 million from US tariffs. The company's EBITDA per tonne for the quarter was $420, up 6% on year. Excluding the impact of the tariffs and the fires on the shipments, the adjusted EBITDA per tonne would have been $495, according to the company.

 

Novelis expects to restart production at the Oswego County hot mill towards the end of the June quarter of the financial year 2026-27 (Apr-Mar). Hindalco expects a free cash flow impact of $1.3 billion-$1.6 billion owing to the fires at the plant, which includes expenses such as repair costs and operational downtime. Novelis said 70-80% of free cash flow and adjusted EBITDA can be recovered through insurance.

 

The company expects to close FY26 with a revised run-rate savings of over $150 million, up from the previous estimate of $125 million. The Hindalco subsidiary will target over $300 million in total savings by the end of FY28.

 

On Wednesday, shares of parent company Hindalco closed at INR 965.95 on the National Stock Exchange, down slightly.  End

 

Reported by Shruti Nair

Edited by Rajeev Pai

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.