Hindalco Industries Limited — PPTs, 05-08-2026: Investor Presentation

Novelis Q1 FY27 results show strong performance with **Net Sales up 23% YoY to $5.8 billion** and **Adjusted EBITDA rising 24% to $516 million**. **Net income jumped 71% to $164 million**, or an impressive 128% to $265 million excluding special items. Rolled product shipments dipped 5% to 916 kilotonnes, mainly due to impacts from the Oswego fires.

Growth was driven by favorable market trends for sustainable aluminum and robust execution. Novelis' high-recycled-content model benefited from metal markets. Regional performance was mixed: Europe, Asia, and South America saw shipment and EBITDA growth, while North America's EBITDA was affected by the Oswego fires, despite an insurance benefit.

A major development is the successful restart of the Oswego hot mill in early June, with production ramping up. The Bay Minette plant commissioning is also underway, expecting commercial shipments in Q1 FY28. Novelis' structural cost-efficiency program has achieved over $225 million in savings and targets $350-400 million by FY28.

While free cash flow was an outflow of $1.1 billion this quarter, management anticipates returning to positive free cash flow in Q4 FY27 and starting deleveraging as Bay Minette capital spending normalizes. Current net leverage stands at 4.5x.