Hindalco Q3 Results: India business shines; Novelis disruption weighs on performance

Hindalco Industries reported a sharp improvement in operating performance for the quarter ended December 31, 2025, supported by a strong India business, even as disruptions at subsidiary Novelis weighed on consolidated earnings.

Consolidated revenue rose 23.1% year-on-year to ₹29,264 crore from ₹23,776 crore. EBITDA surged 59.5% to ₹4,248 crore compared with ₹2,664 crore a year ago, while margins expanded to 14.5% from 11.2%.

However, Novelis’ performance was impacted by two fires at its US facility in Oswego, which disrupted hot-mill operations and affected rolled-product shipments. The company incurred a one-time cost of ₹2,610 crore due to the fires. The disruption is expected to trim operating profit by as much as $200 million and reduce free cash flow by up to $1.6 billion, although Hindalco expects to recover much of the impact through insurance. The hot mill is scheduled to restart in June, with full operations targeted in Q1 FY27.

Despite lower volumes due to the Oswego disruption, Novelis improved EBITDA per tonne by 6%, reflecting cost optimisation efforts.

India business leads

The India business strong growth, aided by favourable macros, higher realisations and operational efficiencies.

Aluminium upstream revenue rose 6% to ₹10,620 crore, while EBITDA increased 14% to ₹4,832 crore. Aluminium downstream sales grew 9% to 108 KT, with revenue up 22% to ₹3,909 crore and record EBITDA of ₹233 crore, up 55%.

Copper revenue climbed 33% to ₹18,233 crore on higher prices, while EBITDA was maintained at ₹595 crore despite declining treatment and refining charges.

Managing Director Satish Pai said Hindalco sustained growth momentum amid global volatility, with India delivering an all-time high performance that helped offset tariff impacts and the Novelis disruption. He added that aluminium capacity is planned to scale up from 1.3 million tonnes to 1.7 million tonnes, and copper smelting capacity from 400 KT to 700 KT, while the 600 KT Bay Minette project remains on track for commissioning in H2 FY27.

Hindalco also retained the highest ESG score in the aluminium industry for the sixth consecutive year in the S&P Global Corporate Sustainability Assessment rankings.

Shares of Hindalco closed at ₹965.30 on the NSE ahead of the results announcement.