Novelis, the wholly owned subsidiary of Hindalco Industries, reported a mixed performance for the June quarter (Q1 FY27), with higher aluminium prices and operational efficiencies driving strong growth in revenue, profitability and EBITDA despite lower shipments due to disruptions from the Oswego plant fires. While earnings improved sharply, cash flows remained under pressure because of higher working capital requirements and increased capital expenditure on the Bay Minette project. The company also reported progress in restoring operations at the Oswego facility, with the hot mill resuming production in early June.
Q1 FY27 Financial Highlights
Q1 FY27
YoY Change
Net sales
$5.8 billion
▲ 23%
Rolled product shipments
916 kilotonnes
▼ 5%
Net income attributable to shareholders
$164 million
▲ 71%
Adjusted net income (excluding special items)
$265 million
▲ 128%
Adjusted EBITDA
$516 million
▲ 24%
Key Drivers of Performance
Impact
Higher average aluminium prices
Boosted revenue
Lower aluminium scrap prices
Improved margins
Cost efficiencies
Supported EBITDA growth
Higher net tariffs
Partially offset gains
Oswego fire disruption
Reduced shipments by an estimated 33 kilotonnes
Insurance proceeds
More than offset production losses, adding an estimated $18 million to EBITDA