SYNOPSIS: A fire at Novelis’ Oswego plant on 16th September 2025, caused localized damage to the hot mill. The incident impacted operations and earnings, though most losses are expected to be insured.
Metal stock falls 7% as it sees up to $650 Mil impact from New York plant fire incident
During Thursday’s trading session, shares of the metals flagship company of the Aditya Birla Group and the world’s second-largest Copper rods manufacturer (outside China) tumbled nearly 7.3 percent on BSE, after the company announced that it sees up to $650 million impact from a fire incident at its New York plant.
At 01:40 p.m., shares of Hindalco Industries Limited were trading in red at Rs. 781.8 on BSE, down by around 6 percent, compared to its previous closing price of Rs. 830.95, with a market cap of Rs. 1.75 lakh crores.
What’s the News:
On 16th September, a fire incident occurred at Novelis’ Oswego plant in New York. No injuries were reported, and the damage was largely confined to the hot mill area. Based on current progress, Novelis expects to restart the hot mill by December 2025.
Following the fire incident at the Novelis Plant in Oswego, New York, the company provided an update regarding the financial and operational impact on 5th November.
It estimates that around 70-80 percent of the loss will be recoverable through insurance in future periods. In Q2 FY26, the company recognized ~$21 million in related charges. For the full year FY26, the incident is expected to result in a negative free cash flow impact of about $550-650 million, with an estimated adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) impact of $100-150 million.
Extensive restoration efforts have been undertaken to restore operations, and the Hot Mill is expected to restart by the end of December 2025, followed by a 4-6 week production ramp-up period to return to normalcy.
Hindalco’s wholly owned subsidiary Novelis is the world’s largest producer of flat-rolled aluminium and aluminium recycler, with a network of advanced facilities across North America, Europe, Asia, and South America, Novelis delivers high-quality products worldwide. It has a diversified portfolio, catering to key sectors like beverage can sheet, automotive, aerospace, and specialties.
Financials & More:
Hindalco Industries reported a marginal growth in its revenue from operations, showing a year-on-year increase of nearly 13 percent from Rs. 57,013 crores in Q1 FY25 to Rs. 64,232 crores in Q1 FY26. Similarly, its net profit increased during the same period from Rs. 3,074 crores to Rs. 4,004 crores, representing a rise of more than 30 percent YoY.
The company will announce its financial results for Q2 FY26 results tomorrow, that is 7th November 2025.
Hindalco Industries Limited is primarily engaged in the business of two main streams of business namely Aluminium and Copper.
In the Aluminium business, the company has presence across the entire value chain starting from mining of bauxite and coal through production of primary Aluminium (Upstream Segment) and value added products (Downstream Segment) like flat rolled product, extrusion and light gauge products for use in various applications like packaging, can, foil, battery enclosures, food and beverage as well as products for use in aerospace, automotive, electronic, EV, transportation, building and construction and other industrial products.
In the Copper business, Hindalco has one of the largest single location Copper smelting facility in India. The company produces copper cathode, copper rods and precious metals. It is also expanding its business horizon in Internally Grooved Copper Tube and Copper Scrap Recycling.
Written by Shivani Singh
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