Hindalco Industries Ltd

Target overview

• New entity: UHG Holdings IFSC Private Limited, incorporated Aug 20, 2026 at GIFT City, Gujarat.
• Promoter group Hindalco, UltraTech, and Grasim subscribe; UHG becomes Hindalco-related party.
• IFSC-regulated vehicle to own, operate aircraft, ships, and transport assets.
• Turnover not applicable; newly incorporated with no prior turnover.

Transaction details

• Total consideration Rs 1,000,000 for equity shares issued.
• Form of consideration: cash paid by promoter subscribers.
• Shareholding allocated: Hindalco 50%, UltraTech 41%, Grasim 9%.

Regulatory & timeline

• Regulatory approvals: IFSCA approval required.
• Indicative completion timeline: not disclosed.

Target background

• Incorporation date and location: Aug 20, 2026; GIFT City, Gujarat, India.
• Objects: to purchase/lease/charter/own/operate aircraft, ships, and other transport modes.
• Background: entity to strengthen Hindalco's business network; associate of Hindalco.
• Turnover history: not applicable; last three-year turnover not disclosed.

Financial Performance

• Consolidated EBITDA rose 58% YoY to INR 13,481 crores.
• Consolidated PAT rose 75% YoY to INR 7,013 crores.
• India Upstream EBITDA rose 73% YoY to INR 8,606 crores; PAT 5,301 crores, up 86%.
• Novelis Adjusted EBITDA at $516 million; Oswego fire net impact $18 million; insurance proceeds $47 million.
• Consolidated net debt-to-EBITDA at 1.95x; target around 2x.

Operating Update & Segment Trends

• India upstream aluminum shipments up 3% YoY; revenues up 44% YoY.
• India upstream EBITDA 7,390 crores; margin 55%.
• Copper shipments 105 Kt; CCR 96 Kt; quarterly copper EBITDA INR 918 crores.
• Novelis shipments 916 KT; YoY down 5%; EBITDA $516m; $563/ton.

Market Environment & Risk Factors

• Oswego restart in June; ramping to normal; headwinds recovery expected into next fiscal.
• Tariffs: $70 million related to tariff impacts; not excluded from EBITDA on Novelis call.
• MJP premium elevated due to Middle East supply disruptions; expected to ease as imports reconfigure.

Balance Sheet & Cash Flow

• Oswego insurance recoveries expected; cumulative cash impact is about $600 million net.
• NK: Net debt/EBITDA targeted around 2x; Novelis leverage expected to improve from current levels.

Projects & Capex

• Aditya Alumina refinery: Phase 1 180 pots by Dec 2027; Phase 2 by Dec 2028.
• Captive coal mines: Chakla 1.0 MT; Bandha 0.5 MT; Meenakshi development underway.
• Bay Minette greenfield 600 KT on track for completion this year.
• Renewables: add 414 MW; total 884 MW by FY27; 125 MW RE RTC capacity.

Outlook & Guidance

• Global macro: RBI expects FY27 GDP growth at 6.7%; inflation around 5%.
• Novelis long-term EBITDA per ton guidance unchanged at $600.
• 3-year cost-reduction target for Novelis: $350–$400 million; run-rate savings $225 million.
• Downstream EBITDA target for FY30: fourfold increase; ongoing integration with copper.

Meeting Details

• Date and time: August 17, 2026, 9:00 a.m.–4:50 p.m.
• Conference: Motilal Oswal 22nd Annual Global Investor Conference.
• Type: One-on-one and group meeting.
• Location: Mumbai.

Participants

• Company representatives will participate; specific roles not disclosed.

Purpose

• Intimation of Hindalco's participation in the investor conference.

Additional Notes

• Schedule may change due to organizer/Company exigencies.
• Q1 FY27 and Investor Day 2025 presentations to be shared before investors and on Hindalco website.

Acquisition update

• Target: AluChem Companies, Inc.; no business details disclosed.
• Acquirer: Aditya Holdings LLC, a wholly owned subsidiary of Hindalco Industries Limited.
• Related party transaction; promoter Hindalco through Aditya Holdings LLC.
• Regulatory approvals: CFIUS review required; timelines tolled by US government shutdown.
• CFIUS timeline: final clearance anticipated by September 2, 2026.
• No completion date stated; updates to be provided.
• Consideration: not disclosed.
• Acquisition scope: AluChem acquisition by Aditya Holdings LLC.
• Target background: not disclosed.
• Target country: not disclosed.

Kuppam unit capacity expansion

• Existing capacity up to 20 KTPA; current utilization 80-85%.
• Proposed capacity addition up to 10 KTPA (total 30 KTPA).
• Timeline to complete: FY2029.
• Investment required: ₹768 crore, excluding IDC of ₹40 crore.
• Financing: internal accrual and debt.
• Rationale: growth and expansion.

Financials

• Consolidated revenue ₹84,825 crore, +32% YoY.
• Consolidated EBITDA ₹14,989 crore, +73% YoY.
• PAT ₹7,013 crore, +75% YoY.
• Net debt to EBITDA 1.95x at 30-Jun-2026.
• Novelis Adjusted EBITDA ₹4,875 crore, +37%.
• Aluminium Upstream EBITDA ₹7,390 crore, +81%.
• Copper EBITDA ₹918 crore, +36%.
• Record quarterly EBITDA across all segments.

Operational Highlights

• Novelis Oswego hot mill restarted; ramping up.
• Bay Minette commissioning underway; shipments expected in Q1 FY28.
• Aditya FRP, battery foil, battery enclosure, and Inner Grooved Tube progressing.
• Aluminium Upstream Phase 2 on track to begin metal production in FY28.
• Copper Tubes and Inner Grooved Tubes fully operational; scaling up.
• Copper e-waste recycling project to commission in FY27.

Strategic & Cost Management

• Run-rate cost savings over $225 million in Q1 FY27; target $350–$400 million by FY28 exit.
• Long-term EBITDA guidance intact at $600+ per tonne.
• 600 Kt Bay Minette commissioning underway; shipments expected FY28.

Sustainability & Governance

• 65 MW renewable energy project operational at Aditya Aluminium.
• Total waste utilization 80% in Q1 FY27.
• Water recycling improved to 29% across operations.
• Cumulative plantation ~6.34 million trees; biodiversity initiatives at Aditya Aluminium Biodiversity Park.
• Dalla Stone Quarry backfilling initiative; India’s first.
• S&P Global CSA: World's Most Sustainable Aluminium Company for sixth consecutive year.

Debt & Liquidity

• Gross debt ₹103,515 crore; net debt ₹77,495 crore as of 30-Jun-2026.
• TTM Adjusted EBITDA ₹39,824 crore.
• Treasury balance ₹26,020 crore.
• Net debt to EBITDA 1.95x.

Financial results

• Unaudited standalone and consolidated results for the quarter ended June 30, 2026 approved.
• Limited Review Reports attached.

Financing and borrowings

• June 16, 2026: ABL Revolver amended to US$3.0 billion; US$8 million fees to be amortized.
• Uncommitted MUFG revolving facility up to US$500 million; margin 1.15%.
• July 23, 2026: Term loan facility US$500 million; matures 2028; SOFR + 1.00% (1.25%).

Regulatory/Legal updates

• Exceptional expense Rs 2,299 crore for Oswego fire.
• Insurance recoveries Rs 447 crore recognized under Other Income.
• Special Court discharged Hindalco and accused from CBI proceedings (May 30, 2026).

Governance

• Trading window closed for 48 hours from the announcement.