Hindalco Industries calculated that the September 16 incident at the Novelis factory in the United States had a negative free cash flow impact of $550–650 million. According to the company, the losses have an impact on adjusted EBITDA of between $100 and $150 million.
Additionally, according to the Aditya Birla Group firm, Novelis would have to pay an extra $21 million in related fees to restart the plant’s operations. This is in addition to having a big effect on earnings. According to Hindalco, the insurance companies would pay between 70 and 80 percent of the damages or losses brought on by the incident at the site in Oswego, New York.
The Novelis facility in Oswego, New York, caught fire earlier this quarter. The accident caused significant production disruption at the factory, particularly in the hot mill area, even though there were no casualties.
Hindalco Industries reported in an exchange filing that Novelis’ Q2 FY26 net sales climbed 10% year over year to $4.7 billion. Additionally, in Q2 FY26, Novelis’ adjusted EBITDA dropped 9% to $422 million.
According to the company, higher aluminum scrap costs and a net negative tariff impact were the main causes of the EBITDA loss in the second quarter, which was somewhat mitigated by increased product prices and cost-cutting measures.
