Hindalco Industries delivered exceptional financial results for Q4 FY26, with consolidated net profit rising 26.7% quarter-on-quarter to ₹2,597 crore, compared to ₹2,049 crore in the third quarter of fiscal 2026. The company achieved record consolidated revenue of ₹78,133 crore, representing a 17.5% increase from ₹66,521 crore in the previous quarter. Operating income (EBITDA) surged 25.3% to ₹10,018 crore from ₹7,994 crore, with EBITDA margins expanding to 12.8% from 12% in the same previous quarter. However, the strong quarterly performance was overshadowed by significant annual challenges, with FY26 net profit attributable to owners declining 16% to ₹13,391 crore from ₹16,001 crore in FY25, falling short of the ₹16,164 crore estimate in a Bloomberg poll of 28 analysts.
The company's annual performance was significantly impacted by ₹6,963 crore in one-off expenses linked to the Oswego plant disruption at its American subsidiary Novelis, which affected operations of this key supplier of rolled aluminium to can makers and auto companies. Novelis accounted for 59% of Hindalco's revenue in FY26, making the fire incident a major blow to overall profitability. Novelis shipments declined to 3,557 kt from 3,757 kt in FY25, reflecting the impact of the Oswego plant disruption. However, managing director Satish Pai indicated optimism about recovery, stating that the outage is viewed as a timing-related impact with current year headwinds expected to substantially recover in the next fiscal year. The company expects $1.7 billion in restructuring expenses, with 70-80% expected to be recovered through insurance, limiting long-term financial impact.
Despite Novelis challenges, Hindalco's India operations delivered robust performance with record India business EBITDA of ₹22,671 crore in FY26, up 6% from FY25. The company reported a 15% jump in consolidated revenue from operations of ₹2,74,944 crore on the back of higher aluminium sales and moderate copper sales in the domestic market. Aluminium upstream operations showed modest improvement with shipments rising to 1,350 kt from 1,327 kt in FY25, while downstream shipments were up 11% to 446 kt. However, the copper business reported a marginal dip of 1% in volumes, with metal sales at 487 kt versus 491 kt a year ago. The strong India performance was driven by higher aluminium prices significantly boosting profitability and favourable realizations along with stronger by-product prices supporting earnings growth.
Pai added that the company is accelerating expansion projects, including doubling capacities in its copper business and at Aditya Aluminium, supported by a five-year EBITDA CAGR of over 32%. The company plans ₹12,000 crore capex in India for FY27, while Novelis capex will be $2.3-2.4 billion, mostly at Bay Minette. Bay Minette is the site of a new $5.5 billion low-carbon aluminum recycling and rolling plant being built by Novelis Inc, expected to be completed this year. Looking ahead, Pai indicated that going into FY28, Novelis capex will sharply drop once Bay Minette is commissioned, transitioning to maintenance capex, while India capex will be much higher due to ramp-ups in the copper smelter and other projects. The company has fixed Friday, July 10, 2026, as the record date for payment of the final dividend of ₹5 per equity share.
In the June quarter, Hindalco expects near-term input cost escalations of about 5% sequentially due to the West Asia war, though analysts expect higher metal prices to cushion the impact. The company faces aluminium cost pressures expected to rise in Q1 due to higher furnace oil and coal tar pitch prices, even as realizations remain firm. However, the near-term outlook remains steady as strong aluminium and copper prices should offset cost pressures, while operations gradually stabilize. As per Axis Securities analyst Aditya Welekar, the management has guided for a $1.7 billion restructuring expense, which will weigh on free cash flow, though 70-80% is expected to be recovered through insurance. With the Oswego plant set to restart, the company appears to be on a gradual path to recovery.
