Hindalco Industries’ subsidiary Novelis announced it expects capital expenditure for FY27 to remain between $2.1 billion and $2.4 billion, as per an exchange filing.
The planned spending includes nearly $350 million towards maintenance capital expenditure. The company is continuing investments in its aluminium rolling and recycling plant at Bay Minette in Alabama.
Novelis said the Bay Minette project is estimated to cost around $5 billion in total. By the end of FY26, the company had spent nearly $3.2 billion on the facility.
The cold mill at the site entered commissioning in March, while full commissioning of the plant is expected in the second half of calendar year 2026.
The company’s FY26 performance was affected by 2 fire incidents at its Oswego plant in New York during September and November 2025.
Novelis said the disruptions lowered rolled product shipments by an estimated 145 kilotonnes during the year.
Adjusted EBITDA for FY26 declined 9% year-on-year to $1.64 billion, while net income attributable to shareholders dropped to $15 million from $683 million in FY25.
The company also recorded around $925 million in pre-tax losses linked to the Oswego fires, after insurance recoveries.
Novelis reported FY26 net sales of $18.4 billion, up 7% from the previous year, supported by higher aluminium prices.
Rolled product shipments, however, fell 5% year-on-year to 3,557 kilotonnes. Beverage packaging remained the largest segment, accounting for 62% of shipments, followed by automotive at 18%.
Total capital expenditure during FY26 rose 39% year-on-year to $2.3 billion. Adjusted free cash outflow widened to $2.37 billion from $737 million in the previous year, mainly due to project spending and operational disruptions during the year.
The company said liquidity stood at $2.8 billion as of March 31, 2026, including cash and available committed credit facilities. Net leverage ratio increased to 4.1 times at the end of FY26.
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As of May 20, 2026, 2:15 pm, Hindalco Industries share price was trading at ₹1,080.60, up 3.08% from the previous closing price.
Novelis expects capital expenditure to stay elevated in FY27 while commissioning activities continue at Bay Minette. FY26 earnings and shipments were impacted by fire-related disruptions at Oswego.
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Published on: May 20, 2026, 2:24 PM IST
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