Home / Business and Economy / Hindalco Boosts Hedging, Novelis Targets $500/Tonne EBITDA by 2026-27
Hindalco Boosts Hedging, Novelis Targets $500/Tonne EBITDA by 2026-27
10 Nov
Summary
- Hindalco increased hedging to lock in gains amid high LME prices
- Novelis targeting $500/tonne EBITDA in 2026-27 as operations normalize
- Novelis' Oswego mill to restart in December, boosting Q4 results
Hindalco Industries, part of the Aditya Birla Group, is taking steps to capitalize on the current market conditions. The company's Managing Director, Satish Pai, revealed that Hindalco has increased its hedging to 20-25% of its positions, locking in gains at prices of $2,900 per tonne and above.
Looking ahead, Pai expects Hindalco's US subsidiary, Novelis, to have a strong 2026-27 (FY27) with a targeted EBITDA of $500 per tonne as operations normalize after recent disruptions. The Oswego mill, affected by a fire earlier this year, is set to restart in the first week of December, helping Novelis deliver stronger results in the fourth quarter.
Pai also highlighted Novelis' steady underlying business and the key role of the company's Bay Minette project in the US, which will provide 600,000 tonnes of capacity, expandable to 1.2 million tonnes. The project is expected to be highly accretive to Novelis' future growth, particularly in the US market.
Regarding Hindalco's India business, Pai noted that the company's performance remained solid despite the monsoon quarter, which typically increases coal costs. The copper segment is also expected to continue delivering strong EBITDA of over ₹600 crore per quarter, supported by Hindalco's integrated operations.
