Hindalco Record Earnings Highlight Indian Aluminium Strength Despite Novelis Drag

Hindalco

Hindalco record earnings in the 2026 financial year show the strength of India’s aluminium market, even as problems at Novelis weighed on net profit. The Indian aluminium producer posted record revenue and Ebitda for both the full year and final quarter.

Hindalco record earnings were driven mainly by domestic aluminium operations. Full-year Ebitda rose by 7.3% to just over 380bn rupees, while revenue increased by 15% to Rs2.8 trillion.

Hindalco record earnings also extended into the fourth quarter. Ebitda reached Rs112bn in January-March, up 9% from a year earlier, while revenue rose by 20% to Rs781.3bn.

The result shows that Hindalco’s core Indian aluminium business remains resilient. However, the group’s profit performance was held back by the outage at Novelis’ Oswego hot-rolling mill in the US.

Domestic Aluminium Businesses Drive Record Performance

Hindalco’s upstream aluminium business delivered record earnings during the year. Full-year Ebitda rose by 16% to Rs188.8bn, while fourth-quarter Ebitda increased by 13% to Rs54.5bn.

This performance reflects strong operating leverage across Hindalco’s integrated aluminium chain. Upstream aluminium remains highly sensitive to metal prices, energy costs, alumina integration and domestic demand.

The downstream aluminium business also reached a record level. Full-year Ebitda rose by 55% to Rs9.8bn, while fourth-quarter Ebitda increased by 16% to Rs2.6bn.

That growth is strategically important. Downstream aluminium gives Hindalco higher-value exposure to rolled, extruded and fabricated products used in packaging, transport, construction, electrical and industrial markets.

India’s aluminium demand remains structurally supported by infrastructure growth, electrification, packaging consumption, renewable energy and manufacturing expansion. Hindalco’s record results show how domestic demand can offset weaker or more disrupted international operations.

Novelis Outage and Weak Copper TCs Weigh on Profit

Hindalco’s full-year net profit fell by 16.3% to Rs133.9bn. Fourth-quarter net profit dropped by nearly 51% to Rs26bn.

The main pressure came from the stoppage of Novelis’ Oswego hot-rolling mill in September. The outage disrupted US aluminium sheet supply and reduced Hindalco’s consolidated profitability.

Novelis has started commissioning the Oswego hot mill after major repairs. Coils are expected to come off the mill within the next few weeks, which should support a recovery in shipments and earnings.

The Oswego restart matters because Novelis is a major supplier of flat-rolled aluminium products to automotive, beverage can and industrial markets. A smoother ramp-up would reduce pressure on Hindalco’s global aluminium platform.

Hindalco’s copper business showed a mixed picture. The division posted record quarterly Ebitda of Rs9.1bn in the final quarter, but full-year Ebitda fell by 26.6% to Rs28.09bn.

The full-year decline reflected lower sales and weaker treatment and refining charges. This mirrors the wider copper market, where tight concentrate supply has reduced smelter economics even as copper demand remains strategically strong.

Hindalco therefore enters the new financial year with a strong domestic aluminium base, improving downstream earnings and a potential Novelis recovery. But copper smelting margins and the pace of Oswego’s restart will remain important earnings variables.

The Metalnomist Commentary

Hindalco’s results show that India’s aluminium demand is strong enough to deliver record operating earnings, even when global assets face disruption. The key upside now depends on Novelis’ Oswego restart and whether Hindalco can keep expanding higher-margin downstream aluminium while copper TC pressure continues.