Hindalco Industries said its wholly owned subsidiary Novelis Inc. has provided an update on the twin fire incidents at its Oswego plant in New York that occurred in September and November 2025.
Novelis estimates the total free cash flow impact at $1.3-1.6 billion, which includes repair costs, operational downtime, working capital timing and other related expenses. The company said 70-80% of the free cash flow and adjusted EBITDA impact is expected to be recoverable through insurance, subject to policy terms, conditions and potential coverage disputes. No firm estimate for insurance recovery has been accrued at this stage.
The Oswego hot mill is expected to restart by late Q2 calendar 2026. Novelis said it is working with customers and leveraging its global operations and external suppliers to mitigate the impact during the restoration period.
Meanwhile, Novelis reported its Q3 earnings. The Hindalco subsidiary reported a net loss attributable to common shareholders of $160 million, compared with a net income of $110 million in the prior year, largely due to the fires at its Oswego, US plant in September and November.
Net sales rose 3% YoY to $4.2 billion. Production disruptions at Oswego led to rolled product shipments being about 72 kilotonnes lower than expected, resulting in an estimated pre-tax negative impact of $54 million on adjusted EBITDA and net loss. Overall, net loss was further weighed down by $327 million in pre-tax fire-related losses.
Adjusted EBITDA stood at $348 million, down 5% YoY, impacted by an estimated $54 million hit from the Oswego fires and $34 million from tariffs.
It received a $750 million equity infusion received from the parent company in December 2025 to support operations and recovery efforts.
Novelis said underlying market fundamentals remain positive, with strong growth expected to continue in beverage packaging and favourable trends emerging in the scrap market. The company highlighted that controllable actions are driving improvements in adjusted EBITDA per tonne, supported by a cost-efficiency programme that is delivering positive results and a higher FY26 savings outlook, while its tariff mitigation plan remains on track.
Novelis added that it is deploying full resources towards the recovery of the Oswego facility to minimise customer disruption, while also making significant progress on its ongoing US investment at Bay Minette.
Hindalco Industries is the metals flagship company of the Aditya Birla Group. Hindalco is the worlds largest aluminium company by revenues and the worlds second-largest copper rod manufacturer (outside China). It operates across the value chain, from bauxite mining, alumina refining, coal mining, captive power plants and aluminium smelting to downstream rolling, extrusions, and foils. Along with its subsidiary Novelis, Hindalco is the global leader in flat-rolled products and the worlds largest recycler of aluminium.
HIndalco will announce Q3 results later today, 12 February 2026. The company’s consolidated net profit rose 21.30% to Rs 4,741 crore while revenue from operations grew 13.5% YoY to Rs 66,058 crore in Q2 September 2025.
Shares of Hindalco Industries were down 0.41% at Rs 961.75 on the BSE.
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