Hindalco shares surge nearly 7% on shutdown of aluminium smelter in Qatar

Shares of Hindalco Industries, the Aditya Birla Group copper and aluminium producer, climbed as much as 6.69% to hit an intraday high of ₹983.50 on the National Stock Exchange (NSE). On the BSE, Hindalco stock rose as much as 6.7% to an intraday high of ₹984.

Hindalco shares surged after a smelter shutdown in Qatar triggered buying interest in aluminium producers. Likewise, NALCO stock also came under buying interest and rose as much as 8.25% to ₹404.30.

Reports suggest that owing to ongoing war in the Middle East, Qatalum, a major aluminium smelter jointly owned by Hydro and Qatar Aluminium Manufacturing Co., has started a controlled shutdown of its aluminium production after its gas supplier signalled a forthcoming halt in gas supply.

Analysts say that controlled shutdown of the smelter at Qatalum could be positive for Indian aluminium producers as buyers would look for alternative options to source aluminium.

The price of aluminium in international markets surged to fresh 52-week high in the London Metal Exchange on Wednesday. Aluminium futures on LME surged as much as 2.55% to hit 52-week high of $3,418.50.

On the MCX, aluminium futures for delivery on March 31 climbed as much as 1.82% to ₹336.25 per kilogram.

A full restart could take 6–12 months or more, and the company has issued a force majeure notice to customers. This development has direct implications for global supply levels.

Qatalum is a 50/50 joint venture owned by Hydro and Qatar Aluminium Manufacturing Company Q.P.S.C. (QAMCO). The plant has a nameplate capacity of primary aluminium of 636,000 metric tonnes and a casthouse capacity of 664,000 metric tonnes. Qatalum is fully integrated with a smelter, casthouse, carbon plant, and dedicated gas-fired power plant.

Hindalco Q3 earnings

The Aditya Birla Group company last month reported a consolidated net profit of ₹2,049 crore for the quarter ended December 31, 2025 (Q3 FY26), down 45% YoY from the ₹3,735 crore profit logged in the year-ago period.

The company attributed the drop in profit to Oswego disruption due to fires.

The Novelis aluminium plant in Oswego, New York, experienced two significant fires in the hot mill area on September 16, 2025, and November 21, 2025.

Novelis Inc. is headquartered in Atlanta, Georgia, USA. It is a wholly owned subsidiary of Hindalco Industries.

On February 11, Novelis shared an update on the fire incidents.

Novelis estimates that 70%-80% of free cash flow and adjusted EBITDA impact is recoverable through insurance. The company estimates a total free cash flow impact of between $1.3 and $1.6 billion.

As of 12:26 pm, Hindalco shares traded 4.97% higher at ₹968. The stock was top gainer in the NIFTY50 index, outperforming the benchmark which was up 0.6%.