Synopsis:
Hindalco shares fell 3% after its US subsidiary Novelis reported a second fire at its Oswego plant within two months, raising concerns over operational disruption, and delayed restoration efforts despite no injuries.
This company is a flagship company of the Aditya Birla Group and engaged in the manufacturing of aluminium sheet, extrusion and light gauge products for use in packaging markets is now in the focus after its US unit reported second fire in two months.
With market capitalization of Rs. 1,75,411 cr, the shares of Hindalco Industries Ltd are currently trading at Rs. 781 per share, dropping 3% in today’s market session making a low of Rs. 776.05, from its previous close of Rs. 799.60 per share. The stock has gained 21% over the past year, delivered 18% returns in the last six months, and remained largely flat over the past month.
News
Shares of Hindalco Industries Limited fell nearly 3% on November 21, 2025, after news surfaced of a second fire incident within two months at its US-based subsidiary Novelis’ Oswego plant in New York.
This latest fire occurred in the morning and prompted full evacuation of the plant, with multiple local fire departments responding. The fire was brought under control quickly, and there were no injuries reported. Crews remained on site to ensure the fire was fully extinguished.
The first fire occurred on Oct 10, 2025, at the same facility, damaging the hot mill area. Novelis estimated financial impacts from these incidents of significant magnitude.
Novelis’ recent results, with an estimated free cash flow impact of $550–650 million in the financial year 2026 and an EBITDA loss estimated between $100–150 million. Novelis is actively working on restoration and expects the hot mill to restart by the end of December 2025.
About the company
Hindalco Industries Ltd is one of India’s leading aluminium and copper manufacturers and a flagship company of the Aditya Birla Group. With a strong global presence through its subsidiary Novelis, Hindalco operates across upstream mining, refining, smelting, and downstream rolled products. The company reports a ROCE of 14.8% and an ROE of 14.0%, supported by a healthy debt-to-equity ratio of 0.56
The company posted steady year-on-year growth in Q2 FY26, with sales rising 14% to Rs. 66,058 crore from Rs. 58,203 crore. EBITDA also increased 14%, reaching Rs. 8,966 crore, while net profit grew 21% to Rs. 4,741 crore compared to Rs. 3,909 crore last year. EPS improved 21% YoY, climbing to Rs. 21.10 from Rs. 17.39.
Written by Manideep Appana
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