Hindalco Shares Plunge 7% as Novelis Plant Fire Triggers $650Mn Cash Flow Hit

dustries Ltd shares tumbled over 7% in morning trade on November 6, hitting ₹772.30 by 11:04 am, after its wholly-owned subsidiary Novelis disclosed a major financial impact from a September fire at its Oswego, New York plant. Novelis reported a 27% YoY jump in Q2 FY26 net income to $163 million, but adjusted EBITDA fell 9% to $422 million and EBITDA per tonne dropped 8% to $448. Shipments remained flat at 941 kilotonnes. The fire, which broke out on September 16 and damaged the hot mill, will now cost the company dearly. Novelis estimates a $550–650 million negative free cash flow impact for FY26, including $100–150 million in lost EBITDA. It has already booked $21 million in Q2 charges, with 70–80% expected to be covered by insurance. The hot mill is slated to restart by end-December 2025, followed by a 4–6 week ramp-up. Teams have worked round-the-clock to restore operations and minimize customer disruption using alternative resources. Novelis President and CEO Steve Fisher said, “We are grateful for the swift response of our teams and the collaboration of customers and suppliers. Despite this challenge, we remain confident in our business resilience and ability to recover.” The disclosure spooked investors, wiping out early gains and sending Hindalco shares sharply lower as concerns mount over delayed capex and cash-flow pressure.