Hindalco Share Price Surges 4% Following Novelis' Q4 Earnings Release

Hindalco Industries Shares Jump 4% on Novelis Quarterly Results

Shares of Hindalco Industries climbed 4% to hit an intraday high of ₹1,089.60 on the BSE on Wednesday, May 20, after its US subsidiary Novelis reported its quarterly results and provided an update on operations at its fire-hit Oswego facility in New York.

Novelis reported a net loss of $84 million for the fourth quarter, compared with a net profit of $294 million in the corresponding period last year, as fire incidents at its Oswego plant continued to impact operations and cash flows. The company said the decline was primarily due to pre-tax losses of $630 million linked to the September and November fire incidents at the facility. Despite the losses, quarterly net sales increased 4% year-on-year to $4.8 billion, driven mainly by higher aluminium prices.

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Novelis also announced that it plans to restart the hot mill at the Oswego facility earlier than initially anticipated. At the same time, the company said it now expects a bigger impact on cash flows from the fires, while also projecting stronger medium-term savings from its ongoing cost-reduction initiatives. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 3% year-on-year to $459 million.

Novelis is a subsidiary of Hindalco Industries, an industry leader in aluminium and copper, and the metals flagship company of the Aditya Birla Group. Despite the near-term impact from the Oswego fire incidents, Novelis management remained optimistic about demand trends and the company's long-term growth outlook. The company said it remains focused on capturing rising demand for sustainable aluminium products while continuing work on operational recovery and expansion projects.

Hindalco Industries said in an exchange filing dated May 13 that it will announce its Q4 and FY26 financial results on Friday, May 22, followed by a conference call with investors. Ahead of the results, Kotak Institutional Equities projected Hindalco's India EBITDA (standalone plus Utkal) at ₹55.4 billion, up 3.6% YoY and 7.3% QoQ.

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Brokerages, however, continued to remain constructive on Hindalco following the latest update from Novelis. Citi maintained a Neutral rating on Hindalco with a target price of ₹1,000, while HSBC retained its Buy rating on Hindalco with a target price of ₹1,310.