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Hindalco Industries said its US-based subsidiary Novelis Inc posted a 13% year-on-year rise in net sales to $4.7 billion for the first quarter of fiscal 2026, boosted by higher average aluminium prices and a 1% increase in total rolled product shipments to 963 kilotonnes. Growth in beverage packaging volumes was partly offset by weaker automotive and specialty shipments.

Net income attributable to the common shareholder dropped 36% to $96 million, hurt by restructuring charges and lower operating performance, partially cushioned by favourable metal price lag. On an adjusted basis, net income slid 43% to $116 million, while adjusted EBITDA fell 17% to $416 million. The decline was driven by higher aluminium scrap costs, an unfavourable product mix and net negative tariff impacts, though higher pricing, lower SG&A costs and currency gains provided some relief. Adjusted EBITDA per tonne was down 18% to $432.

Operating cash flow jumped 42% to $105 million, aided by lower working capital requirements.

In June 2025, Novelis raised $400 million via tax-exempt bonds to partly fund its Bay Minette plant construction, with maturities stretching to 2055. The company also launched a cash tender offer to repurchase its outstanding 3.250% senior notes due November 2026 and plans to privately issue $750 million in senior unsecured notes due 2033.

Novelis is the world's largest aluminium recycler.

Following the announcement, shares of Hindalco Industries were down 0.48% at Rs 668.60 on the BSE.

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