Hindalco Industries Limited , the Aditya Birla Group's metals flagship, has announced robust financial results for the second quarter of fiscal year 2026, demonstrating resilience in the face of global market volatility.

Financial Highlights

Hindalco's consolidated performance for Q2 FY26 showcases significant year-over-year growth:

Segment Performance

Novelis

Novelis, Hindalco's global subsidiary, reported flat shipments compared to the prior year quarter. Despite headwinds, Novelis achieved:

• Revenue of $4.70 billion, up 10% year-over-year
• Adjusted EBITDA of $422.00 million, down 9% due to tariff impacts
• Adjusted EBITDA per ton of $448.00, with a 3% increase to $506.00 per ton excluding net tariff impact

Aluminium (India)

The Aluminium business in India delivered outstanding results:

• Upstream EBITDA reached ₹4,524.00 crore, up 22% year-over-year
• Industry-leading EBITDA margin of 45%
• Downstream segment achieved record EBITDA of ₹261.00 crore, a 69% increase

Copper

The Copper business remained resilient:

• EBITDA of ₹634.00 crore, in line with guidance
• Performance maintained despite lower TC/RCs, offset by higher realization from Sulphuric Acid

Strategic Developments

1. Novelis announced cost reduction initiatives targeting over $125.00 million in run-rate savings by FY26 and $300.00 million by FY28.
2. The Oswego plant's hot mill is expected to restart in December 2025, ahead of previous guidance.
3. Hindalco announced the second phase expansion of Aditya Aluminium, adding 193 KT capacity with a project cost of ₹10,225.00 crore.

Management Commentary

Satish Pai, Managing Director of Hindalco Industries, stated, "Hindalco continued its growth momentum amid global volatility, delivering strong performance in both volumes and profitability. This performance was driven by robust contribution from India business, disciplined cost management and operational efficiencies across segments."

He added, "Our integrated business model, prudent capital allocation and focus on cost optimization, continues to enable us to deliver sustained, resilient growth across market cycles."

Sustainability Focus

Hindalco remains committed to its sustainability agenda, focusing on climate action, circularity through waste recycling, water stewardship, and biodiversity protection.

Outlook

While the company faces challenges such as global market volatility and tariff impacts, Hindalco's strong performance across segments and strategic initiatives position it well for continued growth. The focus on cost optimization, operational efficiencies, and sustainability efforts are expected to support the company's resilience in the face of market fluctuations.

Investors and stakeholders can look forward to the potential benefits from Novelis' cost reduction initiatives and the expansion of Aditya Aluminium in the coming years, which may further strengthen Hindalco's market position and financial performance.

Hindalco Industries Limited , the Aditya Birla Group's metals flagship, has announced robust financial results for the second quarter, demonstrating resilience amid global market volatility. The company has also revealed plans for a significant expansion at its Aditya Aluminium unit in Odisha, while reporting an increase in debt levels.

Key Financial Highlights

• Consolidated revenue increased by 13% year-over-year to ₹66,058.00 crore
• Consolidated EBITDA rose 6% to ₹9,684.00 crore
• Profit After Tax (PAT) grew 21% to ₹4,741.00 crore
• Aluminium Upstream business EBITDA surged 22% to ₹4,524.00 crore
• Aluminium Downstream achieved record EBITDA of ₹261.00 crore, up 69%

Segment Performance

Aluminium Upstream

The Aluminium Upstream segment continued its strong performance with an EBITDA of ₹4,524.00 crore, representing a 22% increase year-over-year. The segment maintained industry-best EBITDA margins at 45%, showcasing operational efficiency and cost management.

Aluminium Downstream

The Downstream segment reported an all-time high EBITDA of ₹261.00 crore, marking a significant 69% growth compared to the same quarter last year. This performance was supported by record volumes and an improved product mix.

Copper

Despite headwinds in the global market, the Copper business remained resilient. The segment reported an EBITDA of ₹634.00 crore, aligning with the company's guidance despite lower TC/RCs (Treatment and Refining Charges).

Novelis

Novelis, Hindalco's wholly-owned subsidiary, reported flat shipments compared to the prior year quarter. The segment's Adjusted EBITDA stood at $422.00 million, down 9% year-over-year, primarily due to the impact of tariffs.

Strategic Developments

1. Novelis plans to restart the hot mill operations at its Oswego plant by December 2025.

2. The company aims to implement cost reduction initiatives targeting over $125.00 million in run-rate savings and $300.00 million by specific future dates.

3. Hindalco announced the second phase of Aditya Aluminium expansion, adding 193 KT capacity with a project cost of ₹10,225.00 crore.

4. The company plans to expand capacity at its Aditya Aluminium unit in Odisha. The current capacity stands at 370KT and is fully utilized. Hindalco proposes to increase capacity by 193KT, requiring an investment of ₹10,225 crore.

Debt Levels

Hindalco's consolidated gross debt increased to ₹726.70 billion as of September 30, compared to ₹591.21 billion in the previous year, representing a substantial year-over-year rise. The company's consolidated net debt also grew to ₹414.15 billion from ₹360.33 billion during the same period.

Management Commentary

Satish Pai, Managing Director of Hindalco Industries, stated, "Hindalco continued its growth momentum amid global volatility, delivering strong performance in both volumes and profitability. This performance was driven by robust contribution from India business, disciplined cost management and operational efficiencies across segments."

He further added, "Our integrated business model, prudent capital allocation and focus on cost optimization, continues to enable us to deliver sustained, resilient growth across market cycles."

Sustainability Focus

The company reaffirmed its commitment to sustainability, emphasizing climate action, circularity through waste recycling, water stewardship, and biodiversity protection.

Conclusion

Hindalco's Q2 results demonstrate the company's ability to navigate challenging global market conditions while maintaining strong financial performance. The growth in key segments, coupled with strategic initiatives, expansion plans, and a focus on sustainability, positions Hindalco well for continued success in the metals industry. However, the increase in debt levels highlights the need for careful financial management as the company pursues its growth strategies.