Hindalco Industries Q4: What Affected Its 50% Net Profit Decline Despite 20% Revenue Growth?

Synopsis: Hindalco Industries reported strong operational growth led by India businesses, but profit declined sharply due to overseas disruption, while expansion projects and EV-focused investments continued gaining momentum.  

The shares of this large cap company majorly engaged in the business of production of Aluminium and Copper which includes aluminium sheet, extrusion and light gauge products for use in packaging markets like beverage, food and many more  were in focus after the company reported Q4 FY26 results. 

With the market capitalization of Rs. 2,46,566 Crores, the shares of Hindalco Industries Ltd were trading at around Rs. 1097 per share which is around 2 percent discount from its 52 week high of Rs. 1115 per share and is trading at a P/E of 14.1 whereas industry P/E stands at 18.6 

Q4 FY26 Results: 

Year on Year analysis: Revenue from operations has increased from Rs.  64,890 Crores to Rs. 78,133 Crores, up 20  percent. Operating profit has increased from Rs. 8836 Crores to Rs. 10,014 Crores, up 13.3 percent and net profit has decreased from Rs. 5284 Crores to Rs. 2597 Crores, down 51 percent. 

Quarter on Quarter analysis: Revenue from operations has increased from Rs. 66,521 Croes to Rs. 78133 Crores, up 17 percent. Operating profit has increased from Rs. 7911 Crores to Rs. 10,014 Crores, up 26.5 percent and net profit has increased from Rs. 2049 Crores to Rs. 2597 Crores, up  26.7 percent 

Fire-Related Disruption and Exceptional Losses Impact Profitability 

The sharp decline in Hindalco Industries’s reported profit during Q4 FY26 was mainly due to the fire-related disruption at Novelis’ Oswego plant in the US, which impacted production volumes and overall profitability. Because of this disruption, consolidated PAT dropped 51 percent  to Rs. 2,597 crore from Rs. 5,284 crore in the year-ago quarter, despite strong operational growth across India businesses. 

The company also reported lower profit after accounting for exceptional items linked to the incident, as profit before tax fell to Rs. 3,451 crore from Rs. 6,550 crore last year. However, Hindalco stated that core profitability remained healthy, with PAT before exceptional items still rising 10 percent  to Rs. 5,796 crore, supported by record performance in aluminium and copper operations.

India business delivers record earnings

Hindalco’s India business remained the biggest growth driver during the quarter. Aluminium upstream revenue increased 11 percent  to Rs. 11,418 crore, while EBITDA rose 13 percent  to a record Rs. 5,448 crore with EBITDA margins remaining strong at 48 percent . EBITDA per tonne also touched a record $1,756.

The downstream aluminium business continued scaling up, with revenue rising 35 percent  to Rs. 4,867 crore and sales volumes increasing 18 percent  to 124 KT. EBITDA from the segment rose 16 percent  to an all-time high of Rs. 255 crore despite ongoing ramp-up costs at the Aditya flat rolled products facility.

Copper operations also delivered a strong performance. Revenue jumped 52 percent  to Rs. 22,156 crore, while EBITDA surged 48 percent  to a record Rs. 907 crore despite lower TC/RCs. Continuous Cast Rod sales increased 11 percent  to 91 KT, supported by better operational performance and stronger sulphuric acid realisations. 

Novelis faces disruption but recovery plans continue

Novelis reported revenue of $4.8 billion in Q4 FY26, up 4 percent , but adjusted EBITDA declined 3 percent  to $459 million because of lower shipment volumes and the Oswego disruption. Shipments fell to 844 KT from 957 KT last year. However, EBITDA per tonne improved 10 percent  to $544 due to cost optimisation measures and softer scrap prices.

The company expects the Oswego hot mill to restart within weeks. Meanwhile, commissioning work at the Bay Minette greenfield project has progressed, with the cold mill already commissioned in March 2026 and the hot mill expected in the second half of 2026. 

Expansion projects and EV business gain momentum

Hindalco continued expanding its value-added and EV-focused businesses during the quarter. The battery foil plant at Aditya has started supplies to global cell manufacturers, while the Chakan battery enclosure plant and Aditya flat rolled products facility are scaling up operations.

The company also announced plans to accelerate expansion projects after delivering over 32 percent  EBITDA CAGR in the India business over the last five years. Hindalco is doubling capacities in its copper business and expanding operations at Aditya Aluminium to support future growth.

Additionally, the copper recycling project is nearing commissioning and is expected to begin operations in H1 FY27, while the Inner Grooved Tubes plant is progressing toward full capacity utilisation.

Sustainability and resource security remain focus areas

Hindalco ranked among the top 1 percent  of global aluminium companies in the S&P Global Sustainability Yearbook 2026 for the sixth consecutive year, achieving 100 percentile scores across multiple ESG parameters.

On the resource side, Chakla coal mines received Forest Clearance-I approval, while the Bandha coal mine completed its first box cut during Q4 FY26. These developments are expected to strengthen raw material security and support long-term cost efficiencies.

Conclusion

Hindalco Industries delivered a strong operational performance in FY26 with record revenue and EBITDA driven by robust growth across its India aluminium and copper businesses. However, the fire-related disruption at Novelis’ Oswego plant significantly impacted reported profitability, leading to a sharp decline in net profit despite healthy core earnings growth.

The company continues to strengthen its long-term growth outlook through aggressive expansion in aluminium, copper, recycling and EV-linked businesses such as battery foil and battery enclosures. With the Oswego restart expected soon, Bay Minette progressing steadily, and multiple downstream projects scaling up, Hindalco remains focused on improving profitability, expanding value-added operations and strengthening its global metals position.

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