Hindalco Industries subsidiary Novelis Inc., a global leader in aluminum rolling and recycling, has released its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company faced challenges due to market headwinds, primarily from higher scrap prices, but maintained strong demand in key sectors. Additionally, Novelis Corporation, an indirect subsidiary of Novelis Inc., has initiated a cash tender offer and plans a new note issuance.

Financial Highlights

• Net income attributable to common shareholder decreased by 36% year-over-year to $96.00 million.
• Net income excluding special items fell 43% to $116.00 million.
• Adjusted EBITDA declined 17% to $416.00 million.
• Net sales increased by 13% to $4.70 billion.
• Rolled product shipments rose 1% to 963 kilotonnes.
• Adjusted EBITDA per tonne shipped decreased 18% to $432.00.

Operational Performance

Novelis reported mixed results across its segments:

The company experienced strong demand for beverage packaging sheet across all regions, which partially offset lower shipments in automotive and specialty products.

Cost Reduction Initiatives

In response to market pressures, Novelis has accelerated its cost reduction program. Steve Fisher, President and CEO of Novelis Inc., stated, "We are making solid progress on our comprehensive cost reduction program, which we expect will lower our cost base and improve our margins." The company now anticipates run-rate cost savings to exceed $100.00 million by the end of fiscal year 2026, surpassing the previous target of $75.00 million.

Strategic Investments

Novelis continues to progress on key strategic projects:

• The greenfield rolling and recycling plant in Bay Minette, Alabama, remains on track, with a total planned capacity of 600 kilotonnes.
• In June 2025, the company issued $400.00 million in tax-exempt bonds to finance a portion of the Bay Minette construction costs.

Market Outlook

Despite challenges, Novelis remains optimistic about long-term growth prospects. The company cites continued strong demand for aluminum beverage packaging and expects the automotive sector to benefit from lightweighting trends in the long run.

Dev Ahuja, Executive Vice President and CFO, commented, "We are finding opportunities to streamline our cost structure in response to the challenging external environment, freeing up resources that can be invested to meet continued growing market demand for low-carbon, more sustainable aluminum products."

Financial Position

As of June 30, 2025, Novelis reported:

• Net leverage ratio of 3.2x
• Total liquidity of $3.00 billion
• Cash and cash equivalents of $1.10 billion

The company expects capital expenditures for fiscal year 2026 to range between $1.90 billion and $2.20 billion, primarily directed towards strategic investments in new rolling and recycling capacity.

Cash Tender Offer and New Note Issuance

Novelis Corporation has commenced a cash tender offer to purchase all outstanding 3.250% Senior Notes due November 2026. The company is offering $997.50 per $1,000 principal amount of notes, plus accrued interest. The tender offer expires August 15, 2025, with settlement expected August 18, 2025.

Simultaneously, Novelis Corporation plans to offer $750 million in new senior unsecured notes due 2033 through a private offering. The proceeds from the new note issuance will be used to purchase the 2026 notes through the tender offer and cover associated fees. Any remaining proceeds may be used to redeem 2026 notes not tendered.

The tender offer is conditional on receiving at least $750 million in gross proceeds from the new note offering. BNP Paribas Securities Corp. serves as dealer manager for the transaction.

Novelis continues to focus on operational efficiency and strategic investments to navigate current market challenges while positioning itself for future growth in sustainable aluminum solutions. The company reported net sales of $17.1 billion in fiscal year 2025.

In a significant move that's set to reward shareholders, 31 companies have announced dividend payments, with Thursday marking the crucial deadline for investors to purchase shares and qualify for these payouts. This wave of dividend declarations includes several major players across various sectors of the Indian economy.

Key Dividend Announcements

• MCX (Multi Commodity Exchange): Set to distribute a dividend of Rs 30.00 per share.
• Indian Oil Corporation: Declared a final dividend of Rs 3.00 per share. This translates to a total payout of Rs 4,236.40 crore, benefiting nearly 32 lakh shareholders. Notably, the government, holding a 51.5% equity stake, is slated to receive Rs 2,181.65 crore from this dividend.
• Hindalco Industries : Announced a final dividend of Rs 5.00 per share.
• Ceat: Offering a dividend of Rs 30.00 per share.

Other prominent companies joining the dividend bandwagon include Mankind Pharma, ABB India, Aurobindo Pharma, Paras Defence and Space Technologies, and Quess Corp.

Implications for Investors

Under India's T+1 settlement cycle, it's crucial for investors to note that shares must be purchased before the record date to be eligible for these dividend payments. This Thursday deadline is particularly important for those looking to capitalize on these dividend opportunities.

Indian Oil's Dividend Impact

Indian Oil's dividend announcement is particularly noteworthy due to its scale and the government's significant stake. The total payout of Rs 4,236.40 crore underscores the company's strong financial position and its commitment to sharing profits with shareholders. The government's substantial share in this payout also highlights the importance of public sector enterprises in contributing to national coffers.

Diverse Sector Representation

The list of dividend-paying companies spans across various sectors, including commodities (MCX), oil and gas (Indian Oil), metals (Hindalco Industries), pharmaceuticals (Mankind Pharma, Aurobindo Pharma), industrial equipment (ABB India), defense (Paras Defence and Space Technologies), and services (Quess Corp). This diverse representation suggests a broad-based positive performance across different segments of the Indian economy.

Conclusion

This wave of dividend announcements comes as welcome news for investors, offering them a chance to benefit from the profits of these companies. It also serves as a testament to the financial health and shareholder-friendly policies of these corporations. As the Thursday deadline approaches, investors are advised to make informed decisions based on their investment strategies and the attractive dividend yields on offer.