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Hindalco Q3 Profit Plunges 45% Amid Novelis Plant Disruptions

Hindalco Industries reported a 45% year-on-year decline in its consolidated net profit for the December quarter, falling to Rs 2,049 crore. The sharp drop was primarily attributed to disruptions from fire incidents at its US-based subsidiary Novelis's Oswego aluminium plant. Despite the profit decline, the company's revenue from operations grew by 14% to Rs 66,521 crore during the quarter. Managing Director Satish Pai noted the strong performance of the India business helped offset the impact of global challenges.

Key Points: Hindalco Q3 Profit Falls 45% to Rs 2,049 Crore

  • 45% YoY profit drop to Rs 2,049 cr
  • Revenue up 14% YoY to Rs 66,521 cr
  • Exceptional item of Rs 2,610 cr impacted profit
  • Disruptions from US plant fires a key factor
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Hindalco Q3 profit falls 45 pc to Rs 2,049 crore

Hindalco's Q3 net profit fell 45% YoY to Rs 2,049 crore, impacted by fire incidents at its Novelis plant in the US, despite revenue growth.

"The company managed to sustain growth momentum despite global volatility. - Satish Pai"

Mumbai, Feb 12

Hindalco Industries, the flagship metals company of the Aditya Birla Group, on Thursday reported a 45 per cent fall in its consolidated net profit for the December quarter.

The company's net profit declined to Rs 2,049 crore in the December quarter, compared with Rs 3,735 crore in the same period last financial year (Q3 FY25), according to its stock exchange filing.

On a sequential basis, profit after tax fell even more sharply by 57 per cent from Rs 4,741 crore reported in the September quarter (Q2 FY26).

Despite the drop in profit, Hindalco's revenue from operations increased 14 per cent year-on-year to Rs 66,521 crore during the quarter, up from Rs 58,390 crore a year ago.

Compared to the previous quarter, revenue rose marginally by 0.7 per cent from Rs 66,058 crore.

Hindalco said the decline in profit was mainly due to disruptions at the Oswego aluminium plant of its subsidiary Novelis in the United States.

The plant in Oswego, New York, faced two major fire incidents in the hot mill area, one on September 16, 2025, and another on November 21, 2025.

Novelis Inc., which is headquartered in Atlanta, Georgia, is a wholly owned subsidiary of Hindalco. The company shared an update on these fire incidents on February 11.

Before accounting for exceptional items, Hindalco's consolidated profit after tax stood at Rs 4,051 crore, showing an 8 per cent increase year-on-year.

However, the company reported an exceptional item of Rs 2,610 crore, which significantly impacted the reported profit.

Basic earnings per share also fell sharply, declining 45 per cent year-on-year to Rs 9.23 from Rs 16.82 in the corresponding quarter of the previous financial year.

Commenting on the performance, Satish Pai, Managing Director of Hindalco Industries, said the company managed to sustain growth momentum despite global volatility.

He highlighted that the strong performance of the India business, which delivered an all-time high, helped offset the impact of global tariffs and the disruption at Oswego.

He added that disciplined cost management and operational efficiencies across segments supported the company during the quarter.

- IANS

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Reader Comments

S
Shreya B
It's impressive that revenue actually grew by 14% YoY despite such a big hit. Shows the underlying business is strong. The exceptional item of ₹2,610 crore is huge! Once that's behind them, profits should bounce back. Fingers crossed for Q4.
A
Aman W
Two major fires in the US plant? That's serious. Raises questions about safety protocols at Novelis. As a long-term investor, I expect more transparency on what's being done to prevent such incidents. The India operations saving the day is a proud moment though. 🇮🇳
P
Priyanka N
The headline number is scary, but look at the profit before exceptional items - it increased by 8%. This seems like a one-off bad quarter due to unforeseen events. If the India business is at an all-time high, the future still looks good. Holding my shares.
D
David E
Reading this from a global investor's perspective. The sequential fall of 57% from Q2 is more alarming than the yearly comparison. It shows the disruption was severe. Hope the update on Feb 11 provides a clear path to normalcy. Cost management will be key now.
K
Karthik V
Satish Pai sounds confident. Global volatility and tariffs are real challenges for metal companies. The fact that they managed growth in revenue is commendable. Sometimes, these one-time hits happen. The focus should be on the operational performance, which seems steady.

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