Novelis Q2 FY27 Net Income Rises 29% to $210 Million on Strong Demand
Novelis reported Q2 FY27 net income of $210 million, up 29% YoY. Adjusted EBITDA increased 20% to $508 million, and net sales rose 25% to $5.9 billion. Shipments were down 2% to 919 kilotonnes. The company received $219 million in insurance recoveries related to the 2025 Oswego fires. Bay Minette plant produced its first coil.
The results are for Novelis, a wholly owned subsidiary of Hindalco, and they reflect substantial financial growth and operational progress, which directly impacts Hindalco's overall financial health and market perception.
The company reported a significant year-over-year increase in net income and adjusted EBITDA, alongside revenue growth, indicating strong financial performance. Positive developments like the Bay Minette plant's first coil production and insurance recoveries also contribute to a positive sentiment.
Novelis Inc., a wholly owned subsidiary of Hindalco Industries Limited, reported its financial results for the second quarter of fiscal year 2027. The company announced a net income attributable to its common shareholder of $210 million, a 29% increase year-over-year. Adjusted EBITDA also saw a significant rise of 20% to $508 million. Net sales grew by 25% to $5.9 billion, primarily driven by higher average aluminum prices, although rolled product shipments decreased by 2% to 919 kilotonnes.
The company highlighted strong quarterly performance, attributing it to disciplined execution, resilient demand, and favorable market conditions. The Bay Minette cold mill produced its first coil in September, moving closer to commercial production. Novelis reported cumulative insurance recoveries of $519 million through the end of Q2 related to the 2025 Oswego fires, with $219 million received in Q2 FY27.
For the first six months of fiscal year 2027, net cash used in operating activities was an outflow of $418 million, compared to a net cash inflow of $411 million in the prior year period, largely due to unfavorable changes in working capital and impacts from the 2025 Oswego fires. Adjusted free cash flow was an outflow of $1.8 billion for the first six months of the current fiscal year, compared to $499 million in the prior year period. The company expects to return to a free cash flow positive position by the end of FY27 and anticipates net leverage reduction to begin in Q4 FY27.
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