Hindalco Q3 results: Net profit falls 45% to Rs 2,049 crore on one-time cost, revenue up 14%

Hindalco Q3 results: Net profit falls 45% to Rs 2,049 crore on one-time cost, revenue up 14%

• Hindalco's Q3 profit dropped 45% to Rs 2,049 crore due to higher costs and US issues.
• Consolidated revenue rose 14% to Rs 66,521 crore in Q3FY26
• India business posted record profits, offsetting Novelis' Oswego disruption

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Hindalco Industries posted a 45% fall in its third-quarter profit on February 12 despite firmer aluminium and copper prices, as higher costs and disruptions at its US unit Novelis weighed on its performance. The Aditya Birla Group-owned metals producer reported a consolidated net profit of Rs 2,049 crore for the three months ended December 31, compared with Rs 3,735 crore a year earlier.

The decline was largely due to Rs 2,610 crore of exceptional expenses tied to a plant disruption in Oswego, New York.

Its US-based subsidiary Novelis, which supplies rolled aluminium to beverage can makers and automakers, was impacted by a fire at its New York plant last year.

The results come a day after Hindalco said the fire at Novelis would hit its 2026 cash flow by $1.3 billion to $1.6 billion, with the company targeting a restart towards the end of the second quarter.

Hindalco's consolidated revenue from operations rose 14% to Rs 66,521 crore in Q3FY26 from Rs 58,390 crore in Q3FY25, supported by a strong performance in the India business, higher copper sales and growth in value-added aluminium products.

Satish Pai, Managing Director, Hindalco Industries, said: "Hindalco sustained its growth momentum amid global volatility, led by all-time high performance by its India business. This strength helped offset the impact of tariffs and the Oswego disruption, supported by disciplined cost management and operational efficiencies across segments.

"We made strong progress across our downstream portfolio with the commissioning and ramping up of key projects including Aditya FRP, battery foil, AC fin-coating, and Copper tubes, positioning us well for emerging growth opportunities. We have entered the next phase of growth with a clear roadmap to expand upstream capacities across alumina, aluminium and copper with aluminium capacity planned to scale up from 1.3 million tonnes to 1.7 million tonnes, and copper smelting capacity from 400 KT to 700 KT. Novelis’ underlying performance remains strong despite short-term capacity constraints from the Oswego disruption. The 600 KT Bay Minette project, on track for commissioning in the second half of FY27, will be a key growth driver."

Consolidated EBITDA for the third quarter stood at Rs 8,543 crore, up 5% from the same quarter last year, and PAT before exceptional Items increased to Rs 4,051 crore, up 8% over the prior year quarter.

"Reported net profit was Rs 2,049 crore, down from Rs 3,735 crore in the same quarter last year impacted by the Oswego disruption, partly offset by cost efficiency benefits at Novelis, and record profits by the India business. India business continued to outperform on the back of favourable macros coupled with the Company’s focus on resource security, value enhancement through new product development, and operational efficiencies. Novelis registered an improvement of 6% in EBITDA per tonne despite lower volumes due to the Oswego disruption, reflecting its focus on cost-optimisation and operational excellence," said Hindalco in a stock exchange filing.

On February 12, Hindalco's shares closed flat at Rs 965.3 apiece. The results were announced post-market hours.

India business

Hindalco's India business revenue rose 23 per cent to Rs 29,264 crore, powered by strong aluminium upstream and downstream performance. In Q3, upstream revenue rose 6 per cent at Rs 10,620  crore, while EBITDA surged 14 per cent to Rs 4,832 crore,  driven by higher volumes and realisations.

Its downstream revenue too increased 22 per cent at Rs 3,909 crore in the quarter, with EBITDA up 55% on account of higher shipments and favourable product mix, the company said in a press release.

Copper business revenue was at Rs 18,233 crore, up 33%, due to higher copper prices in the December quarter.

Novelis 

The company's quarterly  revenue at $4.2 billion, up 3%, driven by higher metal price. It reported a 5 per cent decrease in adjusted EBITDA at $348 million,   reflecting an estimated net negative impact of $54 million from the Oswego fires and $34 million from tariffs. Shipment volumes fell 11% to 809 kilotonnes, including a 72 kilotonnes impact from the fires.

The company flagged a gross cash flow impact of $1.3 billion to $1.6 billion from the Oswego fire, with 70% to 80% expected to be covered by insurance, translating to an estimated $900 million to $1.3 billion insurance recovery over time. This includes approximately $150 million to $200 million in adjusted EBITDA impact, assuming shipment losses of around 150–200 kilotonnes.

Novelis management told analysts on February 11 that  it is navigating production disruption following two significant fire incidents at its Oswego plant in New York, one in September and another in November.

Below EBITDA, the company recorded $327 million in fire-related losses, including repairs and cleanup costs, idled fixed costs and excess costs incurred to fulfill customer contracts.

Excluding the impact of the fires and tariffs, adjusted EBITDA per tonne would have been $495, underscoring what management described as the resilience of its core business.