Novelis reports strong Q2 FY26 with 27% net income jump

For the three months ended September 30, 2025, Novelis Inc. reported net income attributable to its common shareholder of $163 million, a notable increase of 27% compared to $128 million in the prior year period. Total net sales reached $4.7 bn, up 10% from $4.3 bn in the prior year, primarily driven by a 143% increase in average Local Market Premium (LMP) and a 10% increase in average LME prices, partially offset by $57 million in unfavorable metal price hedging activities. Income before income tax provision also saw a significant rise, increasing by 24% to $224 million from $180 million.

For the six months ended September 30, 2025, net sales totaled $9.5 bn, reflecting a 12% increase from $8.5 bn in the prior year, and net income attributable to common shareholders was $259 million. Adjusted EBITDA for the quarter was $422 million, while for the six-month period, it stood at $838 million. The company's total available liquidity as of September 30, 2025, amounted to $2.9 bn.

Novelis is actively managing its structural costs, recognizing restructuring charges of $28 million for the quarter and $111 million for the six months ended September 30, 2025, as part of its 2025 Efficiency Plan. Capital expenditures for the six months ended September 30, 2025, were $913 million.