Hindalco Industries , a leading player in the Indian aluminium sector, has unveiled its ambitious plans for significant growth in its aluminium downstream business. The company has set its sights on achieving an impressive Rs 4,000 crore in aluminium downstream Ebitda by the fiscal year 2030, as announced by Managing Director Satish Pai.

Key Highlights

• FY30 Target: Rs 4,000 crore in aluminium downstream Ebitda
• FY26 Milestone: Expected to cross Rs 1,000 crore in aluminium downstream Ebitda
• Q2FY26 Performance: Rs 261 crore Ebitda, representing a 69% year-on-year growth
• Cost-saving Initiatives: Raised target to Rs 125 million annually by FY26
• Long-term Cost Reduction: Committed to a Rs 300 million programme by FY28

Progress on Major Projects

Hindalco's Managing Director, Satish Pai, cited progress in key projects such as Aditya FRP and Silvassa, which are instrumental in driving the company's growth strategy. These projects are expected to play a crucial role in achieving the ambitious Ebitda targets set by the company.

Novelis Subsidiary Update

New York Plant Recovery

Hindalco's subsidiary, Novelis, faced a setback due to a fire at its plant in New York. However, the company has provided an optimistic update on the situation:

• Expected Resumption: Full operations anticipated to resume in December
• Ebitda Impact: Estimated at $100.00-150.00 million across Q3 and Q4
• Insurance Coverage: The majority of the impact is expected to be covered by insurance

Cost Optimization Initiatives

Hindalco has demonstrated a strong commitment to enhancing operational efficiency:

These cost optimization efforts are expected to significantly contribute to the company's profitability and help achieve its ambitious Ebitda targets.

Hindalco Industries' strategic focus on expanding its aluminium downstream business, coupled with its cost optimization initiatives, positions the company for potential strong growth in the coming years. As the company progresses towards its FY30 target, investors and industry observers will be keenly watching its performance and the execution of its growth strategy.

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.