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Informist, Friday, May 22, 2026

By Astha Oriel and Simran Rede

NEW DELHI – Hindalco Industries Ltd. sees strong growth for its India business and the revival of its Novelis business in 2026-27 (Apr-Mar), the management said in the analyst conference call after announcing financial results for the March quarter and FY27. 

For FY27, the capital expenditure for India business will be INR 120 billion and Novelis business at $2.3 billion to $2.4 billion, the management said.  The company expects the cost inflation to increase by 5% in the June quarter, sequentially. "The majority is driven by furnace oil. Furnace oil prices have really gone up high, followed by copper rod and cathode prices...but furnace oil being the biggest one. The coal prices are more or less still under control," the management noted. 

Amid the rise in aluminium prices in the global market, for FY27, the company has hedged 29% of aluminium at 3013 and 14% of the Indian currency is hedged at INR 90.13, according to the management.

The company said the production of the coal from its Bandha coal mine in Madhya Pradesh will be in FY28. "On the coal mines, we did the box cut of Banda, but it's a very high strip ratio. So you're going to see first coal only in FY28," the company said. For its Chakla coal mine in Jharkhand, the company expects the box cut in the next two months.

"You're going to see meaningful coal starting to come in only in FY28. And that too, Chakla will be the main one because Banda is a high box cut, high strip ratio. It will take us a while to ramp up the production there," the management said.

The price of coal from Chakla and Bandha mines will be at the same level to the present coal price, while the price of coal from Meenakshi coal mine in Odisha would be substantially lower than the present coal price. "I think the way we should look at our captive mines is that our cost curve gets completely standardised and flat because we control the coal and the pricing for the next 15-20 years with these mines. So, if we take today's price of coal on the sort of option price, yes, it is low. So, Chakla and Banda will probably be at the same level. Meenakshi will still be substantially lower than today's price," a senior company official said. 

For its Novelis business, the company expects the full commissioning of the Oswego plant after 24 months. "...as we complete the full commission or the full ramp up after 24 months, we would be at the run rate of 600 KT (600,000 tonnes) and the overall EBITDA per tonne that we've been talking about of that facility would be north of $1,000 per tonne," the management said. 

For the March quarter, the company's consolidated net profit declined nearly 51% on year to INR 25.97 billion due to the impact of a one-time cost of INR 41.71 billion. The company's revenue from operations rose over 20% on year to INR 781.33 billion. The company detailed its quarterly earnings post-market hours. On Friday, shares of the company ended 0.9% higher at INR 1,109.20 on the National Stock Exchange.  End

US$1 = INR 95.69

Edited by Akul Nishant Akhoury

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