Hindalco Q3 FY26 performance: Profit drops 45% YoY amid Oswego fire; India PAT reaches all-time high

Hindalco Industries Limited, the metals flagship of the Aditya Birla Group, reported its financial results for the third quarter of FY2026, highlighting sustained business momentum driven by a record performance in India. The company reported an all-time high India business profit after tax of INR 35.8 billion, underscoring strong domestic momentum.

At the consolidated level, however, net profit for the quarter ended December 31, 2025 (Q3 FY2026), came in at INR 20.49 billion. This was sharply lower than INR 47.41 billion recorded in Q2 FY2026 - a sequential fall of about 56.8 per cent. If compared again with Q3 FY 2025, the net profit was INR 37.35 billion, down nearly by 45 per cent year-on-year. The decline was primarily attributed to operational disruptions at Oswego following fire incidents.

The Novelis aluminium plant in Oswego, New York, faced two significant fires in the hot mill area on September 16, 2025, and November 21, 2025, which affected capacity during the quarter.

Revenue remained largely steady. Operations generated INR 665.2 billion in Q3 FY2026, slightly higher than INR 660.5 billion in the previous quarter, reflecting a marginal increase of 0.7 per cent. Even so, profitability indicators softened. EBITDA declined nearly 11.8 per cent to INR 85.43 billion from INR 96.84 billion in Q2 2026. Profit after tax mirrored the pressure, dropping about 56.8 per cent sequentially.

Q3 FY 2026 vs Q3 FY 2025

Compared with the same quarter last year, operating performance showed resilience. Consolidated EBITDA rose around 5 per cent to INR 85.43 billion, up from INR 81.08 billion in Q3 FY2025.

Revenue growth was stronger on a yearly basis, climbing roughly 14 per cent from INR 583.9 billion to INR 665.2 billion, indicating improved business traction across segments.

Yet, despite higher revenue and EBITDA, net profit fell nearly 45 per cent from INR 37.35 billion a year earlier to INR 20.49 billion. The Oswego disruption weighed on earnings, though cost-efficiency measures at Novelis and record India business profitability helped limit the impact.

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9M FY2026 vs 9M FY2025

For the first nine months of FY2026, revenue from operations reached INR 1.97 trillion, up about 13.4 per cent from INR 1.74 trillion in the corresponding period of FY2025.

EBITDA increased 6.7 per cent year-on-year to INR 269 billion compared with INR 252 billion a year earlier. Profit after tax, however, edged lower by roughly 4.7 per cent, standing at INR 150.4 billion against INR 157.8 billion in the same nine-month period last fiscal (FY 2025).

Also read: Major win for BHEL as ₹12 billion Hindalco deal energises order book

Upstream and downstream performance

Sequentially, the upstream aluminium segment recorded improvement. Revenue rose 5.4 per cent to INR 106.2 billion from INR 100.7 billion in Q2 FY2026. EBITDA in the segment strengthened 6.8 per cent to INR 48.32 billion, supported by higher volumes and improved realisations.

The downstream business saw lower volumes during the quarter. Sales stood at 108 KT, compared with 113 KT in Q2, reflecting a decline of around 4.4 per cent. Even with softer volumes, revenue moved up slightly by 2.6 per cent to INR 39.09 billion from INR 38.09 billion. Downstream EBITDA moderated to INR 2.33 billion from INR 2.61 billion in the previous quarter, a decrease of approximately 10.7 per cent.

Commenting on the results, Satish Pai, Managing Director, Hindalco Industries, said, "Hindalco sustained its growth momentum amid global volatility, led by all-time high performance by its India business. This strength helped offset the impact of tariffs and the Oswego disruption, supported by disciplined cost management and operational efficiencies across segments.

We made strong progress across our downstream portfolio with the commissioning and ramping up of key projects including Aditya FRP, battery foil, AC fin-coating, and Copper tubes, positioning us well for emerging growth opportunities.”

Also read: Hindalco announces plans for aluminium smelter expansion and downstream push

Growth roadmap

Pai added that Hindalco has entered the next phase of growth with a clear roadmap to expand upstream capacities across alumina, aluminium and copper, with aluminium capacity planned to scale up from 1.3 million tonnes to 1.7 million tonnes and copper smelting capacity from 400 KT to 700 KT.

Despite short-term capacity constraints at Oswego, Novelis delivered a resilient underlying performance, reporting a 6 per cent increase in EBITDA per tonne even as volumes declined due to the disruption, highlighting its focus on cost optimisation and operational efficiency. Also, the 600 KT Bay Minette project, scheduled for commissioning in the second half of FY27, is expected to contribute meaningfully to growth. The India business continued to benefit from favourable macro conditions, resource security initiatives, new product development and operational efficiencies.

Note: As of February 13, 2026, USD 1 is equal to INR 90,58.

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