Hindalco delays two key projects as Novelis margins soften

Hindalco finished Q4 with consolidated EBITDA of ₹10,812 crore, an 11% increase driven by record-high copper performance. Yet, the earnings call shifted focus to project delays and margin pressure. Management confirmed the Oswego hot mill restart is now slated for late Q1 FY27, missing previous targets by six months. Simultaneously, the Chakla coal mine box cut has been pushed to mid-2026. Novelis, a vital profit driver, saw its adjusted EBITDA per ton slip 4% to $543, hampered by fire-related costs and lingering tariff headwinds. While management reaffirmed a long-term goal of $600 per ton, that target relies on a $350-400 million cost-reduction plan stretching toward FY28. With Q1 FY27 aluminum costs expected to rise by 5%, Hindalco faces a tricky balancing act between securing its long-term structure and managing short-term operational slips. The next quarter will test whether these project timelines hold.