Hindalco Targets Aluminium Downstream Ebitda Of Rs 4,000 Crore By FY30
Hindalco has largely found ways to mitigate the impact of US tariffs, according to Satish Pai, MD, Hindalco Industries.
Hindalco Industries Ltd. is targeting an aluminium downstream Ebitda of Rs 4,000 crore by FY30, according to Managing Director (MD) Satish Pai.
“Many of our large projects, like Aditya FRP (flat-rolled products), Silvassa, are ramping up. I think we are well on our way to reach that Rs 4,000 crore target by FY30,” he said during a conversation with NDTV Profit on Monday.
In FY26, Ebitda from aluminium downstream will cross Rs 1,000 crore.
“This year has seen a very good trend. We are now Rs 261 crore (in Q2FY26), 69% up year-on-year (YoY). This year, we'll be comfortably crossing a Rs 1,000 crore.”
The company’s aluminium downstream operations span manufacturing of value-added goods like flat-rolled products, extrusions and foil and packaging materials for various industries.
Addressing a question on the impact of US tariffs, he said the company’s subsidiary, Novelis, had faced the brunt.
“If I look at the overall macroeconomic tariff environment, it has impacted Novelis negatively. This quarter's tariff impact is about $53 million (Rs 470 crore). Otherwise, Novelis actually had a very strong Q2. And if it was not for the tariff impact, they would have been at $476 million (about Rs 4,222 crore) of Ebitda and $505 (about Rs 44,794) per tonne of Ebitda,” Pai said.
However, Pai is confident of being able to mitigate the impact of the tariffs in H2FY26.
“We have largely found ways to mitigate the tariffs because they were due to metal coming from Canada to the US. We have said that in the second half of this year, we will mitigate the tariff impact of $60 million (about Rs 532 crore) that we see every quarter,” the top executive said.
The metals flagship of the Aditya Birla Group has raised its cost-saving target to an annual run rate of $125 million (about Rs 1,109 crore) by the end of FY26, up from an earlier $75 million (about Rs 665 crore).
Pai described these measures as "completely sustainable", rooted in structural changes like workforce optimisation and operational tweaks.
Hindalco Industries is committed to a $300 million (about 2,661 crore) cost-reduction programme by FY28, which would directly boost the bottom line.
“The $300-million target by FY28 is what you should see as a sustainable cost reduction that can go and hit our bottom line.”
He confirmed that operations at the company's fire-affected Novelis plant in New York are expected to return to "full action" in December, with repairs progressing "a bit ahead of schedule."
“We have publicly announced about $100 to $150 million EBITDA impact. That will be across Q3 and Q4. All of this is covered by insurance. And we have said that 70% to 80% of all the losses will be recovered from insurance,” he said.
