Hindalco's Oswego mill restart beats schedule as India EBITDA hits record
Management confirmed the US hot mill will restart in weeks, while record India aluminium and copper performance anchored a strong Q4 finish.
— 4 earlier stories on Hindalco Industries Ltd. →What's new
- Oswego hot mill restart is now weeks away, ahead of previous guidance.
- Bay Minette greenfield plant remains on track for H2 2026 commissioning.
- Copper EBITDA reached a record ₹907 crore, aided by sulphuric acid price spikes.
Why this matters
Hindalco is balancing strong current cash flow from its India operations with significant capital deployment in the US. The record margins in copper and aluminium provide a cushion for the upcoming cost headwinds, though the long-term reliance on captive coal remains a multi-year wait.
What we're watching
- Impact of higher furnace oil prices on Q1 aluminium production costs.
- Sustainability of sulphuric acid price tailwinds for the copper division.
- Volume ramp-up from captive coal mines, now targeted for FY28.
The full read
Hindalco closed Q4 with record performance in its India business. Aluminium upstream margins reached $1,756 per ton and EBITDA hit ₹6,610 crore. The copper division also set a record with ₹907 crore in EBITDA, buoyed by the price of sulphuric acid. Margins are strong. Management warned of a 5% rise in Q1 aluminium production costs due to furnace oil prices. Operational progress remains steady, with the Oswego hot mill restart now expected in weeks, ahead of schedule, and the Bay Minette greenfield plant on track for a 2026 launch. Investors should note that captive coal mines, which are a critical component of long-term cost control, will not deliver meaningful volumes until FY28. The company continues to target a $600 per ton EBITDA for its Novelis business, maintaining its long-term guidance despite the immediate cost pressures.
Questions answered
- What is the status of the Oswego hot mill?
- Management expects the mill to restart within weeks, which is ahead of the timeline previously provided to the market.
- How did the India business perform in Q4?
- The India business posted a record quarterly EBITDA of ₹6,610 crore, supported by aluminium upstream margins of $1,756 per ton.
- What drove the record copper performance?
- Copper EBITDA hit a record ₹907 crore, largely due to a surge in sulphuric acid prices linked to the conflict in West Asia.
- When will the Bay Minette plant be operational?
- The greenfield project is on schedule for full commissioning in the second half of calendar 2026.
- What cost pressures does the company expect in Q1?
- Management anticipates a 5% increase in aluminium production costs in Q1, driven by rising furnace oil prices.
Story so far
All notes on HINDALCO →- 26 May 2026 · 12:35 PM IST Hindalco's Oswego mill restart beats schedule as India EBITDA hits record
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