Hindalco Industries expects raw material costs to rise by another 5% in the coming quarters as geopolitical tensions continue to tighten supplies and push up fuel prices, managing director Satish Pai said on Monday.
“The two places where our prices have gone up are Furnace Oil and CP Coke (Calcined Petroleum),” Pai said during a post-earnings media call, adding that costs would likely ease only after shipping through the Strait of Hormuz normalises and commodity fuel prices soften.
Pai said the company expects subsidiary Novelis to deliver earnings of around $500 per tonne in fiscal 2027, while expressing confidence that the company would retain key customers including Ford Motor Company.
“For Novelis, the worst is over,” Pai said.
The comments came after Hindalco reported a 51% year-on-year decline in consolidated net profit at Rs 2,597 crore for the fourth quarter of FY26, compared with Rs 5,283 crore a year earlier.
Revenue from operations rose 20% to Rs 78,133 crore during the quarter, while consolidated EBITDA increased 9% year-on-year to a record Rs 11,197 crore.
The company said disruptions caused by a fire at Novelis’ Oswego plant in New York hurt earnings in FY26 and resulted in a one-time charge of Rs 4,171 crore in the fourth quarter.
Novelis, which contributes around 60% of Hindalco’s revenue, reported adjusted EBITDA of $462 per tonne for FY26.
Hindalco said its India business delivered record quarterly revenue, EBITDA and profit after tax during the quarter, supported by firmer metal prices and strong seasonal demand.
The aluminium upstream business reported record quarterly EBITDA of Rs 5,448 crore, up 13% year-on-year, while the copper business posted record quarterly EBITDA of Rs 907 crore, up 48%.
Pai said the company expects high double-digit growth in its domestic aluminium downstream business this fiscal year, driven by ramp-up at its new rolling facility Aditya FRP and expansion into higher-value products such as EV components and construction materials.
The company is also ramping up production of aluminium can sheets.
Hindalco forecast quarterly copper EBITDA in the range of Rs 600 crore to Rs 700 crore, with earnings expected to remain resilient despite weak treatment and refining charges, aided by downstream products and precious metals.
Pai added that India could eliminate its dependence on imported refined copper within two years through capacity additions and recycling, although reliance on imported copper ore is likely to continue.
The company said the Oswego plant is expected to restart in the next few weeks, while the Bay Minette cold mill project remains on track for completion in the second half of calendar year 2026.
For the full FY26, Hindalco reported record consolidated revenue of Rs 2.74 lakh crore, up 15% from the previous year, while annual consolidated EBITDA rose to an all-time high of Rs 38,097 crore.
(With inputs from Reuters)
