Hindalco Q3 Results: Profit Falls 45% to ₹2,049 Crore on Oswego Hit

Introduction: A Tale of Two Performances

Hindalco Industries, an Aditya Birla Group company, reported a 45% year-on-year decline in its consolidated net profit for the third quarter of fiscal year 2026. The profit after tax (PAT) stood at ₹2,049 crore, down from ₹3,735 crore in the same period last year. This significant drop was primarily driven by a substantial one-time exceptional loss related to operational disruptions at its U.S. subsidiary, Novelis. However, the headline numbers mask a story of resilience, as the company's India business delivered a record-breaking performance, cushioning the overall financial impact and showcasing underlying operational strength.

The Oswego Plant Disruption

The primary cause for the steep decline in profitability was an exceptional expense of ₹2,610 crore. This charge is directly linked to two fire incidents at the Oswego plant in New York, operated by Hindalco's wholly-owned subsidiary, Novelis Inc. The incidents, which occurred in September and November 2025, severely impacted the hot mill operations, leading to production losses, significant repair costs, and inventory write-downs. Novelis, a key supplier of rolled aluminium to beverage can and automotive manufacturers, faced considerable constraints due to the disruption. The company has indicated that the hot mill is expected to restart operations in the first quarter of FY27.

Consolidated Financial Performance

Despite the challenges at Novelis, Hindalco's consolidated revenue from operations grew by a healthy 14% to ₹66,521 crore in Q3 FY26, up from ₹58,390 crore a year earlier. This growth was supported by higher metal prices and robust sales from its India operations. Consolidated Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) also saw a 5% increase, reaching ₹8,543 crore. To understand the core operational health, it is crucial to look at the profit before the one-time charge. Excluding the exceptional item, Hindalco's consolidated PAT actually rose by 8% year-on-year to ₹4,051 crore, indicating that the fundamental business remains strong.

India Business Delivers Record Results

The standout performer for the quarter was Hindalco's domestic business, which achieved an all-time high PAT of ₹3,581 crore, marking a 24% increase year-on-year. This robust performance provided a crucial buffer against the international setbacks. The revenue from the India business climbed 23% to ₹29,264 crore, driven by strong volumes and favourable realisations across its segments.

Segment-Wise Breakdown of India Operations

• Aluminium Upstream: This segment reported a 14% YoY increase in EBITDA to ₹4,832 crore, with revenue rising 6% to ₹10,620 crore, benefiting from higher volumes.
• Aluminium Downstream: The downstream business showed remarkable growth, with EBITDA surging 55% to ₹233 crore. Revenue for this segment increased by 22% to ₹3,909 crore, attributed to a better product mix and higher shipments.
• Copper Business: The copper segment's revenue jumped 33% to ₹18,233 crore, fueled by higher copper prices and strong demand during the quarter.

Novelis Performance Under Pressure

The Oswego disruption significantly impacted Novelis's financial metrics. The subsidiary's revenue for the quarter was $1.2 billion, up 3% due to higher metal prices. However, adjusted EBITDA fell by 5% to $148 million. This figure includes an estimated negative impact of $14 million from the fires and an additional $14 million from tariffs. Total shipment volumes declined by 11% to 809 kilotonnes, with the fires accounting for a loss of 72 kilotonnes. The company has flagged a gross cash flow impact of $1.3 billion to $1.6 billion from the incident, though it expects 70-80% to be covered by insurance over time.

Key Financial Metrics Summary

Management Commentary and Future Outlook

Hindalco's Managing Director, Satish Pai, stated that the company sustained its growth momentum amid global volatility. He emphasized that the record performance of the India business helped offset the impact of the Oswego disruption and international tariffs. Looking ahead, Pai outlined the company's next phase of growth, which includes expanding aluminium capacity from 1.3 million tonnes to 1.7 million tonnes and copper smelting capacity from 400 kilotonnes to 700 kilotonnes. Furthermore, Novelis's 600 kilotonne Bay Minette project in the U.S. remains on track for commissioning in the second half of FY27, which is expected to be a key future growth driver.

Market Reaction

The company announced its results post-market hours on February 12, 2026. On that day, the shares of Hindalco Industries closed flat, ending 0.067% lower at ₹965.30 apiece on the National Stock Exchange. The stock has been a strong performer over the past year, delivering returns of over 61%.

Conclusion

Hindalco's third-quarter results present a dual narrative. While the consolidated profit was severely dented by a one-off event at its U.S. subsidiary, the company's core operations, particularly in India, demonstrated remarkable strength and resilience. The record-breaking performance of the domestic business underscores its solid foundation. With clear expansion plans and the expected recovery at the Oswego plant, Hindalco appears focused on navigating short-term challenges while positioning itself for long-term growth.