Hindalco Sees $650 Million Cash Flow Hit From US Plant Fire
ECONOMY & POLICY

Hindalco Sees $650 Million Cash Flow Hit From US Plant Fire

Hindalco Industries Ltd, part of the Aditya Birla Group, has estimated a negative free cash flow impact of between USD 550 million and USD 650 million following the fire at its Novelis plant in Oswego, New York, on 16 September.

The company stated that the total loss includes an adjusted EBITDA impact of approximately USD 100–150 million. Additionally, Novelis is expected to incur USD 21 million in restoration and related expenses, over and above the revenue loss caused by the production disruption.

According to Hindalco, insurance companies are expected to cover 70–80 per cent of the total losses and damage from the incident.

The fire, which broke out in the hot mill area of the plant, caused significant production downtime, though no casualties were reported. In a statement, Steve Fisher, President and CEO of Novelis Inc, said the company expects to restart the hot mill operations in December 2025, adding, “Despite this unexpected challenge, we remain confident in the strength of our business, the resilience of our team, and our ability to adapt and recover.”

In its exchange filing, Hindalco reported that Novelis’ Q2 FY26 net sales rose 10 per cent year-on-year to USD 4.7 billion, while adjusted EBITDA fell 9 per cent to USD 422 million.

The decline in EBITDA, the company explained, was primarily driven by net negative tariff impacts and higher aluminium scrap prices, which were partially offset by higher product pricing and cost-efficiency measures.

The financial impact of the fire is expected to weigh on Hindalco’s near-term cash flow and profitability, though the company emphasised that insurance recoveries and operational recovery plans are in place to mitigate long-term effects.

Hindalco Industries Ltd, part of the Aditya Birla Group, has estimated a negative free cash flow impact of between USD 550 million and USD 650 million following the fire at its Novelis plant in Oswego, New York, on 16 September. The company stated that the total loss includes an adjusted EBITDA impact of approximately USD 100–150 million. Additionally, Novelis is expected to incur USD 21 million in restoration and related expenses, over and above the revenue loss caused by the production disruption. According to Hindalco, insurance companies are expected to cover 70–80 per cent of the total losses and damage from the incident. The fire, which broke out in the hot mill area of the plant, caused significant production downtime, though no casualties were reported. In a statement, Steve Fisher, President and CEO of Novelis Inc, said the company expects to restart the hot mill operations in December 2025, adding, “Despite this unexpected challenge, we remain confident in the strength of our business, the resilience of our team, and our ability to adapt and recover.” In its exchange filing, Hindalco reported that Novelis’ Q2 FY26 net sales rose 10 per cent year-on-year to USD 4.7 billion, while adjusted EBITDA fell 9 per cent to USD 422 million. The decline in EBITDA, the company explained, was primarily driven by net negative tariff impacts and higher aluminium scrap prices, which were partially offset by higher product pricing and cost-efficiency measures. The financial impact of the fire is expected to weigh on Hindalco’s near-term cash flow and profitability, though the company emphasised that insurance recoveries and operational recovery plans are in place to mitigate long-term effects.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement