The Novelis Oswego plant is now expected to restart only after late Q2CY26, following recent disruptions. The delay is likely to impact cash flows worth around Rs 14,400 crore ($1.3–$1.6 billion), although about 70–80% of the losses are expected to be recoverable through insurance, it said in a regulatory filing.
“The estimated timeline to restart the Oswego hot mill is late Q2 calendar 2026. Novelis is working in tight cooperation with customers and leveraging its global presence and external suppliers to mitigate customer impact,” it added.
The company also reported its Q3 earnings. The Hindalco subsidiary reported a net loss attributable to common shareholders of $160 million, compared with a net income of $110 million in the prior year, largely due to the fires at its Oswego, US plant in September and November.
Production disruptions at Oswego led to rolled product shipments being about 72 kilotonnes lower than expected, resulting in an estimated pre-tax negative impact of $54 million on Adjusted EBITDA and net loss. Overall, net loss was further weighed down by $327 million in pre-tax fire-related losses.
Also read: Risk-on trade back? Smallcap stocks rally up to 28% in 2026, but market breadth stays weak
Adjusted EBITDA stood at $348 million, down 5% YoY, impacted by an estimated $54 million hit from the Oswego fires and $34 million from tariffs. Rolled product shipments declined 11% YoY to 809 kilotonnes, although Adjusted EBITDA per tonne shipped rose 6% YoY to $430. The company is currently recovering from the production disruption and expects to restart the hot mill at Oswego in late Q2 calendar year 2026. It also received a $750 million equity contribution from its common shareholder in December to support operations and recovery efforts.Novelis said underlying market fundamentals remain positive, with strong growth expected to continue in beverage packaging and favourable trends emerging in the scrap market. The company highlighted that controllable actions are driving improvements in Adjusted EBITDA per tonne, supported by a cost-efficiency programme that is delivering positive results and a higher FY26 savings outlook, while its tariff mitigation plan remains on track.
Novelis added that it is deploying full resources towards the recovery of the Oswego facility to minimise customer disruption, while also making significant progress on its ongoing US investment at Bay Minette.
Sensex, Nifty today: Catch all the LIVE stock market action here
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)