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Hindalco Share Price: Shares of Hindalco Industries Limited plunged over 6 per cent on Thursday's trading session after its US subsidiary, Novelis Inc, said it estimates a negative free cash flow impact of approximately $550-650 million for the current financial year (FY2026) from a fire incident at the Oswego Plant in New York.

As of 2 pm, the Hindalco stock was trading at Rs 782.80, down by 5.79 per cent from the previous close. The stock has risen 32.32 per cent on a year-to-date basis (YTD).

The company recognised $21 million in charges related to damage caused by the fire incident at the Oswego plant. The actual loss incurred will be partially offset by insurance, with an estimated 70 to 80 per cent expected to be recoverable in future periods.

The company also said in its exchange filing that the events will have a negative free cash flow impact of approximately $550–650 million for FY2026, including an adjusted EBITDA impact of around $100–150 million.

"In Q2FY26, recognised $21 million in related charges. Estimate FY2026 negative free cash flow impact ~$550-650 million, including Adjusted EBITDA impact of ~$100-150 million," the exchange filing read.

According to the company, extensive restoration efforts are underway to resume normal operations, with the Hot Mill expected to restart by the end of December 2025, followed by a 4 to 6 week production ramp-up period, aimed at stabilising production levels and mitigating the financial impact of the calamity.

JP Morgan has downgraded its rating to 'neutral' from overweight with a target price of Rs 810.

Jefferies has maintained a 'hold' rating on the Hindalco stock with a target price of Rs 735.

Novelis Q2 result highlights

On November 4, Novelis, the metal flagship company of Aditya Birla Group's Hindalco Industries, reported 27 per cent YoY growth in net income.

However, it had an adjusted EBITDA decline of 9 per cent YoY to $422 million while adjusted EBITDA per tonne shipped fell by 8 per cent YoY to $448. The company stated that it has rolled product shipments of 941 kilotonnes, which is similar to the previous year's period.

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