Hindalco Industries Ltd.Record India PAT Amid Novelis Challenges

Hindalco delivered a mixed Q3 FY26 performance with consolidated EBITDA rising 6% year-on-year to ₹8,762 crore, though reported PAT declined 45% to ₹2,049 crore due to exceptional items from Novelis Oswego fires.

The India business was the standout performer, achieving record quarterly PAT of ₹3,581 crore, up 24% year-on-year, with upstream aluminum EBITDA at industry-leading $1,572 per ton and 45% margins. However, net debt increased ₹24,000 crore in nine months driven by Novelis negative free cash flow and working capital needs, prompting a $950 million equity infusion into Novelis. Management maintained its long-term Novelis target of $600 per ton EBITDA, supported by an accelerated cost reduction program now at $150 million run rate toward a $300 million goal.

The Oswego hot mill restart is expected in late Q1 FY27, while Bay Minette commissioning remains on track for H2 2026. Consolidated net debt to EBITDA stood at 1.73x, below the 2x target, with copper business expected to deliver strong ₹600 crore EBITDA in Q4 FY26.