In a regulatory filing, Novelis stated that it expects free cash flow for the ongoing financial year (FY26) to be negatively impacted by $550–650 million. The fire, which broke out at its Oswego plant in New York on September 16, 2025, has disrupted operations and also led to an estimated $100–150 million hit to adjusted EBITDA (earnings before interest, tax, depreciation and amortisation).
The company noted that restoration work is currently underway and that the Hot Mill is expected to restart by the end of December 2025, followed by a 4–6 week production ramp-up. The delay in the resumption of operations is seen weighing on both earnings and cash flows in the near term.
Novelis, the world’s largest producer of flat-rolled aluminium products and a key supplier to the automotive and beverage can industries, is wholly owned by Hindalco Industries, the metals flagship of the Aditya Birla Group. The parent company had earlier confirmed the incident, stating that it was investigating the cause of the fire and evaluating its operational impact.
Hindalco also assured investors that the plant is covered under insurance for property damage and business interruption losses, though payouts are subject to deductibles and policy limits.
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