Hindalco Industries Limited — PPTs, 04-11-2025: Investor Presentation

Novelis announced its Q2 FY26 results showing a mixed performance. Net Sales rose 10% YoY to $4.7 billion, and net income increased 27% to $163 million, primarily due to metal price lag benefits. However, Adjusted EBITDA declined 9% to $422 million, and net income excluding special items dropped 37% to $113 million, impacted by negative tariffs and higher scrap prices. Rolled product shipments remained flat at 941 kilotonnes, with automotive and aerospace gains offset by declines in beverage packaging and specialties.

Strategically, Novelis is investing $5 billion in its new Bay Minette, Alabama plant, with cold mill commissioning starting Q4 FY26, to meet growing aluminum demand. The company is also aggressively pursuing a cost efficiency program, aiming for over $125 million run-rate savings by FY26 end, targeting $300 million+ by FY28. A significant fire at the Oswego plant in September is expected to be largely covered by insurance, with operations restarting in December. Management remains confident in market fundamentals and ongoing growth in beverage packaging. Capex for FY26 is projected at $1.9-2.2 billion.