Hindalco Industries is charting a resilient path forward for fiscal year 2027, driven by a projected recovery in its U.S. unit, Novelis, and robust domestic demand for aluminum and copper. Managing Director Satish Pai confirmed that “the worst is over” for Novelis, which is targeting earnings of approximately $500 per tonne in FY27. This follows a challenging FY26, where fire-related disruptions at its Oswego plant in New York triggered a one-time fourth-quarter charge of ₹4,171 crore ($437.59 million), limiting adjusted EBITDA to $462 per tonne. Despite these setbacks, customer retention, including major automakers like Ford, remains secure.
Back home, Hindalco is capitalizing on firmer metal prices and strong seasonal demand. The company expects high double-digit growth in its domestic aluminum downstream business, accelerated by the ramp-up of its new Aditya FRP rolling facility and expansion into high-value sectors like electric vehicles and construction. In the copper segment, Hindalco forecasts a resilient quarterly EBITDA between ₹600 crore and ₹700 crore, buoyed by downstream products and precious metals. Pai also noted that capacity additions and recycling could eliminate India’s reliance on imported refined copper within two years, though dependence on imported copper ore will persist.
However, geopolitical headwinds remain a challenge. Ongoing conflicts in West Asia have tightened supply chains and inflated input costs, particularly for furnace oil and calcined petroleum coke. Pai warned that raw material costs are expected to rise by another 5 percent in the coming quarters, noting that relief hinges on the reopening of the Strait of Hormuz to stabilize commodity fuel prices. Despite these macroeconomic pressures, Hindalco’s strategic domestic expansions position it strongly for the upcoming fiscal year.
