Hindalco shares rally 3.5% after Novelis Q4 earnings; Oswego hot mill restart ahead of schedule

Novelis, on Tuesday, reported a consolidated net loss of $84 million for the quarter ended March 31, 2026, due to fire incidents at its plant in Oswego, New York.

The company is a leading sustainable aluminium solutions provider and the world leader in aluminium rolling and recycling.

"Net loss attributable to our common shareholders of $84 million, compared to a net income attributable to our common shareholders of $294 million in the prior year, impacted by Oswego, US, plant fires in September and November," the company said in a statement.

"The decrease was due primarily to $630 million in pre-tax net losses related to the Oswego fires," it added.

However, the consolidated net sales rose to $4,787 million from $4,587 million in the year-ago period.

"Net sales for the fourth quarter of fiscal year 2026 increased 4% versus the prior year period to $4.8 billion, mainly driven by higher average aluminium prices, partially offset by a 12% decrease in total rolled product shipments to 844 kilotonnes," it said.

Lower shipments were driven by production disruptions at Oswego and softness in some speciality markets due to geopolitical conditions, the statement added.

"...We are firmly focused on execution - serving our customers, commissioning our state-of-the-art aluminium plant in Bay Minette and safely restarting Oswego within the next few weeks, well ahead of our previous estimate of end of June," Steve Fisher, president and CEO, Novelis Inc, said.

Q4 FY26 earnings key highlights

• Adjusted EBITDA of $459 million, down 3% YoY;
• Rolled product shipments of 844 kilotonnes, down 12% YoY;
• Adjusted EBITDA per tonne shipped of $544, up 10% YoY; and
• Oswego hot mill expected to restart ahead of expectations.

Update on September and November Fires at Oswego Plant

On September 16, 2025, a fire broke out at the Novelis plant in Oswego, New York.

On November 20, a second significant fire occurred at the Oswego plant in a location where repair work from the September fire was taking place.

Everyone working at the plant was safely evacuated, and there were no injuries to employees, contractors, or first responders during either event.

Both fire events were contained to the hot mill area and did not impact the rest of the plant.

"The Oswego plant has made strong progress in advancing recovery efforts, and commissioning activities are ramping up. We expect the hot mill to be back in service in the next few weeks, positioning us to support pent-up demand and normalize shipments over time," Novelis said in its earnings release.

Dev Ahuja, executive vice president and CFO, Novelis Inc, said, "As anticipated, net leverage is experiencing some temporary pressure driven by the Oswego fires and capital spending at Bay Minette."

"With Oswego restarting, Bay Minette nearing completion, and continued strong business momentum, we believe we have a clear line of sight to returning to positive free cash flow by the end of fiscal 2027, setting a firm path towards deleveraging," the CFO added.

About Novelis Inc

Novelis is a subsidiary of Hindalco Industries Ltd, an industry leader in aluminium and copper, and the metals flagship company of the Aditya Birla Group.