Hindalco Share Price Falls 6% After Novelis Warns of $650 Million Cash Flow Hit

Hindalco Industries share price (NSE: HINDALCO) fell nearly 6% to ₹778.10 on Thursday, November 6, amid profit booking and concerns over the financial impact from a fire at its subsidiary Novelis’ New York recycling plant. Despite the drop, Hindalco stock has still gained 34% in 2025, outperforming the Sensex’s 6.5% rise this year. The stock had recently hit a record high of ₹863.80 on October 30.

Novelis Fire to Impact Cash Flow

Novelis, Hindalco’s US-based aluminium subsidiary, said its free cash flow will be negatively impacted by $550–650 million in FY26 due to the September fire at its Oswego plant. The company also expects a $100–150 million hit to adjusted EBITDA. The Hot Mill is expected to restart by the end of December 2025, followed by a 4–6 week ramp-up period.

Novelis Q2FY26 Earnings Results

For Q2FY26, Novelis’ net sales rose 10% YoY to $4.7 billion, supported by higher aluminium prices. Adjusted EBITDA stood at $422 million, with EBITDA per tonne at $448, down 8% YoY. The decline was due to higher aluminium scrap costs and tariff impacts, partially offset by improved pricing. Net income rose 27% YoY to $163 million due to better metal price trends and lower one-off expenses.

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Conclusion

Hindalco’s near-term performance may face pressure due to Novelis’ operational challenges and higher capex costs. However, its diversified business model and leadership in aluminium production continue to support its long-term growth outlook.

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