Consolidated Financial Performance (Q4 FY26 vs. YoY)
Business Segment EBITDA: Stood at INR 10,812 crores, up 11% year-on-year.
Reported Profit After Tax (PAT): Was INR 2,597 crores, down 51% year-on-year. This decline was primarily due to exceptional items.
Adjusted PAT (Excluding Exceptional Items): Was INR 5,796 crores, up 10% year-on-year. The major exceptional item was a loss related to the fire at the Novelis Oswego plant.
Annual Cash Flow: The businesses generated healthy cash flows of INR 21,858 crores in FY26, representing an 11% year-on-year growth.
Capital Expenditure: Capex for FY26 was INR 31,619 crores, up 47% year-on-year, focused on capacity expansion.
Net Debt-to-EBITDA: The consolidated ratio remained strong at 1.83x as of March 31, 2026. Management expects peak net debt to be between INR 80,000 crores and INR 90,000 crores over the next 2 years and is committed to maintaining net leverage around 2x.
India Business Performance (Q4 FY26 vs. YoY)
Business Segment EBITDA: For the India business was INR 6,610 crores, up 17% year-on-year.
Profit After Tax (PAT): For the India business was INR 3,549 crores, up 11% year-on-year.
India Aluminum Upstream
Shipments: Were up 2% year-on-year.
Revenue: Was up 11% year-on-year.
EBITDA: Stood at INR 5,448 crores, up 13% year-on-year.
EBITDA per ton: Was $1,756.
EBITDA Margin: Was 48%, stated to be among the best in the global industry.
Hedges for FY27: 29% of aluminum sales are hedged at $3,013 per ton, and 14% of currency exposure is hedged at INR 90.13 per $1.
Cost Outlook: Management anticipates a 5% cost inflation in Q1 FY27 over Q4 FY26, driven primarily by higher furnace oil prices.
India Aluminum Downstream
Shipments: Were 124 KT, up 18% year-on-year.
EBITDA: Was INR 255 crores, up 16% year-on-year.
EBITDA per ton: Was $226, driven by higher volumes and product premiumization.
India Copper Business
Total Metal Shipments: Were 128 KT, down 5% year-on-year.
CCR Volumes: Were 91 KT, up 11% year-on-year, indicating market recovery.
EBITDA: Reached a record INR 907 crores, up 48% year-on-year. This was attributed to better realizations from by-products (notably high sulfuric acid prices) and operational efficiencies.
TC/RCs: The spot market is at record lows (negative $0.21 to $0.25 per pound). Over 85% of FY27 volumes are contracted at benchmark rates, expected to be near zero or slightly negative.
Novelis Performance (Q4 FY26 vs. YoY)
Shipments: Were 917 KT (after adjusting for a 73 KT impact from the Oswego fire), reflecting a 4% year-on-year decline from 957 KT.
Adjusted EBITDA: Was $498 million.
Adjusted EBITDA per ton: Was $543, down 5% year-on-year. This figure excludes a $53 million impact from the Oswego fire and a $27 million impact from tariffs, partially offset by a $41 million positive impact from Sierre flood insurance recoveries.
Cost Savings: The company achieved a $200 million exit run rate for cost savings in FY26, exceeding its initial target. The 3-year goal is to permanently reduce the cost structure by $350-$400 million by FY28 exit.
Oswego Fire: The hot mill is on track to restart within the next few weeks. The outage is viewed as a timing issue, with current year headwinds expected to substantially recover in FY27.
Long-Term Guidance: The $600 per ton EBITDA target remains intact.
Project Updates and Strategic Initiatives
Novelis
Bay Minette Project: The 600 KT greenfield rolling and recycling facility is scheduled for completion in FY27. Commissioning of the cold mill has begun, with the hot mill commissioning to start next month. Full commercial coil sales are expected to begin in FY28, with an 18-24 month ramp-up period to reach full capacity. The project's EBITDA per ton is expected to be north of $1,000. Start-up costs during ramp-up are estimated to be in the range of $100-$150 million annually and will be classified below EBITDA.
Tariff Mitigation: Strategies are in place to mitigate the impact of tariffs, including sourcing more domestic cold mill capacity in the US.
Scrap Sourcing: Initiatives are underway to diversify scrap sources, including extracting scrap from landfills and creating a supply chain for end-of-life automotive scrap.
India Business - Expansions
Upstream Aluminum: All key expansion projects, including the Aditya Alumina Refinery and new smelters, are on track. The plan to double upstream capacities is advancing.
Captive Coal Mines: Progress is being made on mines to reduce costs.
Chakla: Received Stage 1 forest clearance; box cut expected in the next 2 months, with first coal anticipated in Q4 FY27.
Meenakshi: Currently under Stage 1 approval; expected to have a fast ramp-up with meaningful volumes in FY29.
Bandha: Completed its box cut in Q4 FY26; first coal expected in FY28 (ramp-up may be slower due to a high strip ratio).
Downstream Aluminum: Strong momentum in scaling up operations.
Aditya FRP Plant: Ramping up well.
Battery Enclosure Facility: Operating at full ramp-up and optimal levels.
Aditya Battery Foil Unit: Commissioned in Q4 FY26.
Taloja AC Fin Facility: Commissioning has begun, with customer qualifications underway.
Copper Business: Several projects are progressing.
Copper Smelter Expansion: In planning stages (3-year timeline).
E-Waste Recycling (Pakhajan): 50 KT plant scheduled to commission in August 2026.
Inner Grooved Tubes Project: 35 KT project is in trial runs and undergoing customer qualification.
Battery Grade Copper Foil: Expected in FY28.
ESG, Safety, and Operational Highlights
ESG Recognition: Hindalco was featured in the S&P Global Yearbook 2026, ranking in the top 1% in ESG scores within the aluminum industry.
Safety: Lost Time Injury Frequency Rate (LTIFR) for the year stood at 0.23, showing significant improvement. However, 3 fatalities were reported at Indian operations.
Waste Management: 88% of total waste generated was recycled or reused. Specific achievements include 131% recycling of bauxite residue, 106% recycling of ash, and 126% recycling of copper slag.
Water Efficiency: Specific water consumption in both aluminum and copper businesses has declined steadily.
Biodiversity: 1.3 lakh mangrove saplings were planted near Dahej, and total plantations reached 8.7 lakhs across sites.
Renewable Energy: Capacity stands at 470 MW. An additional 53 MW is expected in the coming quarter, and 30 MW of storage-based power is scheduled for deployment, taking the total to 523 MW by end of Q1 FY27.
Decarbonization: Aluminum-specific GHG footprint was 19.2 tons of CO2 per ton of aluminum produced, the lowest level achieved, reflecting a structural downward trend.
Economic and Industry Outlook (Management Commentary)
Global Economy: IMF forecasts global growth at 3.1% for 2026, lower than earlier expectations due to geopolitical conflict in West Asia. Global inflation is expected to rise to 4.4%.
Indian Economy: FY26 growth is estimated at 7.6%, with Q4 at 7.3%. RBI expects GDP growth of 6.9% for FY27, with inflation projected to more than double to 4.6%.
Aluminum Market: The market deficit for calendar year 2026 is expected to be 1.5 million tons (up from 0.3 million tons), driven by supply disruptions from the West Asia conflict. This is expected to support prices and drive inventory drawdowns.
Copper Market: The global concentrate market remains unprecedentedly tight in 2026 due to a structural mismatch between smelting capacity and mine supply, keeping TCRCs at record lows.
Indian Aluminum Demand: Estimated around 1.6 million tons in Q4 FY26, reflecting ~9% YoY growth, driven by automotive, electrical, and packaging sectors.
Indian Copper Demand: Including domestic supply, scrap, and imports, demand grew 10% YoY to 402 KT in Q4 FY26, driven by infrastructure investment and electrical applications.
Q&A Session Key Takeaways
Hedges: FY27 hedges are 29% for aluminum at $3,013/ton and 14% for currency at INR 90.13/$1. These are separate hedges for commodity and currency.
Coal Mines: Meaningful coal production from captive mines is expected to start in FY28.
Sulfuric Acid Prices: The surge benefited copper EBITDA in Q4 and is expected to continue in Q1 FY27. Prices are high due to the West Asia conflict and China restricting exports.
FY27 Capex Guidance: India capex is expected to be ~INR 12,000 crores. Novelis capex is expected to be $2.3-$2.4 billion (largely for Bay Minette). Consolidated capex is expected to be lower in subsequent years as Bay Minette is completed.
Net Debt Breakdown: India gross debt is INR 12,200 crores with cash of INR 18,000 crores (net cash: -INR 6,000 crores). Novelis gross debt is INR 75,000 crores with cash of INR 11,000 crores (net debt: INR 63,000 crores).
Aluminum Premiums: Midwest premiums are high (~$380) due to US tariffs. The delta between domestic and export realizations has narrowed.
Copper EBITDA Outlook: While Q1 FY27 is expected to be strong, management maintains a conservative longer-term guidance of INR 600-700 crores per quarter.
