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Hindalco Q3 Profit Falls 45% After Rs 2,610 Crore Charge Linked to Novelis Oswego Fires

Brokers cast the disruption as temporary, pointing to resilient India operations.

Overview

  • Consolidated PAT came in at Rs 2,049 crore for Q3 FY26 versus Rs 3,735 crore a year earlier, down 57% sequentially from Rs 4,741 crore.
  • The exceptional item of Rs 2,610 crore stems from repair and restoration tied to two hot‑mill fires at NovelisOswego, New York plant on September 16 and November 21.
  • Excluding the charge, pre‑exceptional PAT rose 8% year on year to Rs 4,051 crore as revenue increased 14% to Rs 66,521 crore.
  • Hindalco shares fell about 6% on February 13 trading after the results, with investor focus on the Oswego impact and segment trends.
  • JM Financial and Motilal Oswal reiterated Buy calls with targets near Rs 1,120, while Axis Securities and Nuvama kept Hold, flagging higher consolidated net debt near Rs 59,500 crore and an estimated $150–200 million EBITDA hit from Oswego before insurance.