Hindalco Ups the Ante: More Metal, Stronger Margins

Inching up Novelis has seen good growth in its Ebitda per tonne over the past decade and plans to improve it further to $600 in the long-run.

- Manvi Agarwal

Hindalco Industries Ltd has made one thing clear—the metals giant is going all in on scale and efficiency. With a $10 billion capex plan split between India and arm Novelis Inc. over FY24-29, Hindalco is working for sustained growth, with a sharp focus on margins and cash flows.

Novelis will chase the long-term $600 per tonne adjusted Ebitda mark versus $406 and $489 in Q3FY25 and Q2FY25, respectively. The road map sees scale benefits from the Bay Minette project, pricing gains from beverage can contracts, a richer product mix leaning on auto sheets, and operational efficiencies.