Hindalco Share Price in Focus as Novelis Q1 Profit Falls 36%

Market Performance

Hindalco share price will remain in focus on Tuesday, August 12, after its U.S. subsidiary Novelis released its Q1 FY26 results. The earnings reveal a notable decline in profitability despite an increase in sales.

Main News

Novelis reported a net income of $96 million, marking a 36% year-on-year drop for the quarter ended June 30, 2025.

Key financial highlights include:

• Net income (excluding special items): $116 million, down 43% YoY
• Adjusted EBITDA: $416 million, down 17% YoY
• Adjusted EBITDA per tonne: $432, down 18% YoY

The company’s performance was affected by U.S. aluminium tariffs, which had a net negative impact of $28 million on adjusted EBITDA during the quarter.

Company Details

For the first quarter, net sales rose 13% to $4.7 billion, supported by:

• Stronger average aluminium prices
• A 1% rise in total rolled product shipments to 963 kilotonnes

Despite tariff-related challenges, Novelis is moving forward with its Alabama greenfield rolling and recycling plant project, which will have a 600kt capacity once completed.

The company has set its FY26 capital expenditure target between $1.9 billion and $2.2 billion.

CFO Dev Ahuja stated that Novelis is focusing on cost streamlining to navigate the challenging market environment.

Summary

The decline in Novelis’ Q1 profit has drawn investor attention to the Hindalco share price.

While sales improved due to higher aluminium prices, profitability was weighed down by tariffs and an unfavourable product mix.

The company is taking strategic steps, including tariff mitigation measures and major capacity expansion, to strengthen long-term growth prospects.