Hindalco Industries Limited , a leading aluminum and copper manufacturing company, is facing multiple challenges as its subsidiary Novelis reported disappointing results, leading to several broker downgrades. Simultaneously, the company has launched a shareholder-focused initiative to help claim unpaid dividends.

Novelis Results and Impact

Novelis, a subsidiary of Hindalco, reported net sales of $4.7 billion, up 10% year-over-year. However, EBITDA declined to $422 million from $462 million previously. The company faced a $54 million negative impact from Trump administration tariffs, nearly double the previous quarter's $28 million hit.

A fire at Novelis' Oswego plant is expected to impact cash flow by $550-650 million and EBITDA by $100-150 million, though 70-80% may be recoverable through insurance. Net debt reached $5.8 billion, the highest level in 21 quarters.

The Bay Minette project costs have escalated from an initial $2.5 billion to $5 billion due to inflation and execution complexities.

Broker Downgrades

Following these results, multiple brokerages downgraded Hindalco:

• Investec cut it to 'sell' with a ₹693 target
• Axis Capital reduced it to 'reduce' with ₹770 target
• Nuvama downgraded to 'hold' with ₹838 target
• Equirus moved to 'reduce' with ₹790 target

Hindalco shares closed 2% lower at ₹830.85, despite gaining 40% year-to-date.

'100 Days Campaign - Saksham Niveshak' Initiative

In a separate development, Hindalco has announced the launch of a '100 Days Campaign - Saksham Niveshak' initiative aimed at helping shareholders claim their unpaid or unclaimed dividends. The campaign, which runs from July 28 to November 6, 2025, is in response to a request from the Investor Education and Protection Fund Authority (IEPFA) of the Ministry of Corporate Affairs (MCA).

Key Objectives of the Campaign

The primary goals of this campaign are:

1. To create awareness among shareholders about updating their details
2. To facilitate the claiming of unpaid or unclaimed dividends before they are transferred to the Investor Education and Protection Fund (IEPF)

Benefits for Shareholders

Participating in this campaign offers several advantages to Hindalco's shareholders:

• Opportunity to update crucial information such as PAN, nomination details, contact information, bank account details, and specimen signatures
• Ensuring timely receipt of future dividend payments through electronic mode
• Preventing the transfer of unclaimed dividends to the IEPF

How Shareholders Can Participate

Hindalco has outlined specific steps for shareholders to update their information and claim unpaid dividends:

For Physical Shareholders

• Submit Form ISR-1 with self-attested KYC documents
• Provide Form ISR-2 with banker's attestation of signature and original cancelled cheque or self-attested bank statement
• Submit Form SH-13 for adding a nominee or Form ISR-3 to opt out of nomination

For Electronic Shareholders

• Update details with respective Depository Participants (DPs)

Submission Methods

Shareholders can submit their documents through various channels:

• By post to MUFG Intime India Private Limited, the company's Registrar & Transfer Agent
• Via email from registered email IDs with digitally signed documents
• Online through MUFG's portal

Deadline and Support

Hindalco urges shareholders to submit their documents by November 6, 2025. For any assistance regarding the campaign, shareholders can reach out to the company at hilinvestors@adityabirla.com .

This proactive approach by Hindalco not only complies with regulatory requirements but also demonstrates the company's commitment to shareholder welfare. By facilitating the claiming of unpaid dividends, Hindalco is ensuring that shareholders receive their rightful returns and strengthening the trust between the company and its investors.

Hindalco Industries Limited , the parent company of Novelis Inc., is making significant strides in its expansion and recovery efforts while navigating a challenging economic landscape, as revealed in Novelis' Q2 FY26 financial results.

Expansion and Recovery Initiatives

Novelis is heavily investing in its greenfield plant in Bay Minette, Alabama, to expand rolling and recycling capacity. The company expects to begin commissioning its cold mill in Q4 FY26, with full project commissioning slated for the second half of CY 2026. This expansion is part of Novelis' strategy to meet growing demand and strengthen its market position.

In a significant development, Novelis is targeting the restart of its Oswego mill by December 2025, following a fire incident on September 16, 2025. The company is working diligently to minimize customer disruption and estimates a negative free cash flow impact of approximately $550-650 million for FY2026, including an Adjusted EBITDA impact of about $100-150 million.

Financial Performance

For Q2 FY26, Novelis reported:

The company's performance was impacted by a net negative tariff effect and higher aluminum scrap prices, partially offset by higher product pricing and cost efficiency actions.

Strategic Focus

Novelis is implementing structural cost-reduction initiatives, aiming to achieve over $125 million in run-rate savings by the end of FY26. The company continues to target over $300 million in total savings by the end of FY28 through efficiency activities.

Steve Fisher, President and CEO of Novelis Inc., stated, "Demand for infinitely recyclable, lightweight aluminum continues to grow as a fundamental material in modern transportation, building and construction, packaging, and other end markets around the world."

Market Outlook

Despite challenges, Novelis remains optimistic about market fundamentals, particularly in the beverage packaging sector. The company is advancing investments to drive value, achieve sustainability goals, and capture growing demand for sustainable aluminum FRP (Flat Rolled Products).

As Novelis continues to navigate global economic uncertainties, its focus on expansion, cost efficiency, and strategic investments positions the company to capitalize on long-term growth opportunities in the aluminum industry.

About Hindalco Industries Limited

Hindalco Industries Limited, the parent company of Novelis Inc., is a global leader in aluminum and copper manufacturing. As a flagship company of the Aditya Birla Group, Hindalco continues to drive innovation and sustainability in the metals sector.