Shares of Hindalco Industries Ltd plunged 7% after touching a day’s high of Rs 795 on 6th November, following the release of second-quarter results for FY26 by its subsidiary, Novelis.

Novelis Q2 Results:

Novelis, a subsidiary of Hindalco Industries under the Aditya Birla Group, posted a 27% year-over-year rise in net income to $163 million for the second quarter of FY26. However, adjusted EBITDA declined 9% to $422 million. Additionally, EBITDA per tonne slipped 8% to $448. Rolled product shipments were steady at 941 kilotonnes compared to the same period last year.

Fire Impact at US Plant:

The company also provided an update on the 16th September fire at its Oswego plant in New York. The incident, which caused damage primarily to the hot mill area, did not result in any injuries. Novelis said restoration work is underway, with teams working round the clock to resume operations and minimise customer disruption.

Hindalco noted that 70–80% of the damages are likely to be covered by insurance. The company booked $21 million in related charges during Q2. It expects a free cash flow impact of $550–650 million for FY26. This includes an EBITDA hit of about $100–150 million. The hot mill is expected to restart by the end of December 2025. This will be followed by a 4–6-week ramp-up.

Novelis President and CEO Steve Fisher said the company remains confident in its resilience and recovery. He credited employees, customers, and partners for their swift response and support.

Bay Minette Project Update:

Construction continues at Novelis’ Bay Minette rolling and recycling facility in Alabama. Commissioning is slated for the second half of 2026. The total project cost is now estimated at $5 billion, up from $4.1 billion earlier. Of this amount, $2.2 billion has already been invested to support future expansion.

At 3:30 PM, shares of Hindalco Industries ended 5.39% lower at Rs 786.55 on NSE.

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