Weak quarter: Novelis Q4 FY26 net loss of $84M driven by Oswego fire losses ($577M pre-tax), though adjusted EBITDA per tonne rose 10% to $544 on resilient demand and cost savings. quarter Investor Presentation One-Pager? Mar 2026

Revenue (Novelis only)

₹39,732 Cr

+4% YoY (in USD); higher aluminum prices offset 12% lower shipments

Adj. EBITDA Margin

9.6%

Down from 10.3% in Q4 FY25; impacted by $53M fire costs and tariffs

PAT (GAAP, Novelis)

-₹697 Cr

vs +₹2,440 Cr profit in Q4 FY25; loss due to $577M fire charges, net $227M ex-special items

Rolled Product Shipments

844 kt

Down 12% YoY; 73 kt below plan due to Oswego fires

What Went Right

Adj. EBITDA per tonne improved 10% YoY to $544, driven by favorable scrap pricing and product mix despite lower volumes.
Structural cost efficiency program exceeded target, achieving >$200 million run-rate savings by end FY26 (original target $75M).
Oswego hot mill restart is ahead of schedule (within weeks vs prior end-June estimate), positioning to capture pent-up demand.
Bay Minette cold mill commissioning began in March; full plant on track for 2H CY2026 — a 600 kt greenfield capacity addition.
Sierre flood insurance recovery of $41 million in Q4 provided a tailwind to EBITDA.

What to Watch

Net loss of $84 million ($84M loss vs $294M profit in Q4 FY25) due to $577 million pre-tax losses from two Oswego fires.
Oswego fires caused an estimated 73 kt lost shipments and $53 million EBITDA impact in Q4 alone; full-year impact: 145 kt and $104M.
Full-year net income attributable to common shareholder plunged 98% to $15 million (from $683M), crushed by fire charges and restructuring.
Net leverage ratio surged to 4.1x (from 2.9x a year ago) as adjusted net debt rose to $6.7B and TTM EBITDA fell to $1.65B.
Adjusted free cash flow was negative $2.4 billion for FY26 (from -$0.7B in FY25), driven by $2.3B capex (Bay Minette) and Oswego-related working capital outflows.

Management Guidance

Oswego hot mill expected to restart within weeks (ahead of prior end-June estimate).
Bay Minette full plant commissioning expected in second half of CY2026.
FY27 capital expenditure guided in range of $2.1–$2.4 billion, including ~$350M maintenance capex.
Total cost savings target raised to ~$350–400 million by end of FY28 (from prior $300M+).
Expect return to positive free cash flow by end of FY27, with clear deleveraging path after Oswego restart and Bay Minette completion.

Investor Lens

Novelis, Hindalco’s main earnings driver, reported a weak quarter operationally due to the Oswego fires, which caused a net loss and sent net leverage to 4.1x. However, underlying profitability on a per-tonne basis strengthened 10% to $544, and the cost-efficiency program is materially ahead of target. The fires are temporary and insured (70-75% recovery expected), and Oswego restart is imminent. Bay Minette remains on track and within budget ($~5B total), with cold mill now commissioning. The key risk is elevated capex and debt before free cash flow turns positive in FY27. If insurance recoveries materialise as expected and Bay Minette ramps smoothly, the thesis of a structurally improving rolled-products business remains intact. Watch next quarter for Oswego restart timing, Bay Minette commissioning updates, and progress on net leverage reduction.

From investor presentation · AI-generated analysis · Not investment advice

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📉 WEAK Revenue grows 20% but PAT halves on ₹3,146 Cr other income loss.

Revenue

Revenue increased 20.4% YoY to ₹78,133 Cr and 17.5% QoQ, driven by higher sales volumes and possibly better realisations in metals and downstream products.

Profitability

Net profit dropped 50.9% YoY to ₹2,597 Cr (EPS ₹11.56 vs ₹23.51) despite revenue growth, due to a massive ₹3,146 Cr negative other income. On a QoQ basis, PAT improved 26.7%.

Margins

Operating profit margin (OPM) contracted to 13% from 14% last year, though it improved from 12% in the preceding quarter. Margin pressure likely stems from input costs or lower aluminium premiums.

Cash Flow

Cash flow data is not available for this period, limiting assessment of cash generation quality versus reported PAT.

Balance Sheet

Borrowings stand at ₹99,161 Cr against reserves of ₹136,361 Cr, with a debt-to-equity ratio of 0.56. Total assets are ₹3,47,795 Cr.

Key Risks

High reliance on other income (negative swing of ₹3,146 Cr) creates earnings volatility. Margin compression YoY despite revenue growth signals cost pressure. Elevated debt level of ~₹99,000 Cr may weigh on profitability if interest costs rise.

Outlook

Revenue trends remain strong, but the sharp PAT decline from extraordinary items needs monitoring. Management focus on debt reduction and cost optimization will be crucial; global commodity demand and input cost trends remain key swing factors.

Generated by AI · Mar 2026 results · Not investment advice

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Segment	Q3FY26	Q4FY26	Trend
(a) Novelis	— —	43,810 53.3% EBIT 4,202	—
(b) Aluminium upstream	— —	11,418 13.9% EBIT 5,448	—
(c) Aluminium downstream	3,909 5.6% EBIT 233	4,867 5.9% EBIT 255
(d) Copper	— —	22,156 26.9% EBIT 907	—
Aluminium upstream	10,620 15.2% EBIT 4,832	— —	—
Copper	18,233 26% EBIT 595	— —	—
Novelis	37,292 53.2% EBIT 3,102	— —	—
Total	70,054 100%	82,251 100%

Segment	FY25	FY26	Trend
(a) Novelis	— —	162,882 56.1% EBIT 14,546	—
(b) Aluminium upstream	— —	41,447 14.3% EBIT 18,884	—
(c) Aluminium downstream	11,071 5.3% EBIT 723	15,938 5.5% EBIT 978
(d) Copper	— —	69,838 24.1% EBIT 2,809	—
Aluminium upstream	30,029 14.4% EBIT 13,436	— —	—
Copper	47,682 22.9% EBIT 1,902	— —	—
Novelis	119,072 57.3% EBIT 10,344	— —	—
Total	207,854 100%	290,105 100%

Revenue by Segment

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