Thank you very much. We will now begin the question-and-answer session. First question is from the line of Sumangal Nevatia from Kotak Securities. Please go ahead.

Yes. Thank you for the opportunity. And congratulations on another consistent strong performance. First question, sir, is on coal. If you could share what was the coal mix? How do we see the coal cost changing in the coming quarter? And then if you could just update us with respect to our two captive coal mines’ timelines?

The coal cost Q2 to Q3 was flattish, linkage coal e-auction is around 50%, so more or less the same mix as Q2. We have adequate coal stocks and probably quarter four coal will also be more or less similar, maybe little bit lower than Q3. So that's on the coal cost. And if I look at the mines now, Chakla box cut still we should be doing this calendar year sometimes in Q3 to Q4. So Chakla is on track. Meenakshi, we have just got allocated, so now we have to start the environmental clearance, forest clearance, so it will be about two years. But this mine is significantly crucial to Hindalco's long term coal pricing and security.

Okay. So sir, Meenakshi would be more of FY ‘28 volume?

Yes.

Okay. Understood. Sir, the second question is on the CAPEX. So we are looking to spend almost Rs. 40,000-odd crores in India, can we give some more detailed at this stage in terms of what capacities are we looking at in upstream, downstream? How do we phase out these CAPEX? And what would be the capital intensity of these smelters?

Yes. So the two projects that have already got EC and broken ground are the Aditya alumina refinery for 850 Kt in Odisha and the 50 Kt copper recycling plant in Gujarat. So the refinery is about Rs. 7,500 crores to Rs. 8,000 crores, the copper recycling plant is about Rs. 2,700 crores. So these have broken ground and FY ’26-’27 you will see most of this CAPEX coming in. The two projects where we have now filed for environmental clearance is 180 Kt aluminum smelter expansion in Aditya, and the 300 Kt copper smelter expansion in Dahej. So these are the two projects. So what will happen is FY '26-'27-‘28 is where all these CAPEXs will play out. FY ‘26 CAPEX should be around Rs. 8,000 crores, FY ’27 it will go higher, ‘27-’28 will probably be at the peak.

Okay. And sir, these volumes at least from the smelter would come in FY ‘29, right?

Yes.

Okay. So apart from then the refinery, on the aluminum side, we are not expecting any major change in the volume, earnings are largely going to be a factor of commodity prices, right, and a little bit of downstream better volumes.

Yes. So downstream is, Sumangal, quite significan t because we were running at 400 Kt, so with Silvassa and the Aditya we will get to 600 Kt by sort of June of next year, calendar year ‘25. So this is going to be also fairly significant. The copper inner grooved tube 25 Kt comes in. So there small, small, quite a lot of downstream coming in across aluminum and copper, which should add. But yes, upstream volumes will remain flat till the smelter expansion comes in.

Got it. Alright, thank you so mu ch sir. I have more questions, I will join back the queue. Thank you and all the best.

Thank you.

Next question is from Tarang Agarwal from Oldbridge. Please go ahead.

Hi. Good evening, sir. A couple of questions. The first one, sir, once Meenakshi kicks in, I mean, you get great raw material security, but how does it make the cost structure more efficient? I mean, what are the cost savings that you are expecting to do? A broad cut would be helpful. The second is on TC/RC, TC/RC is from 20.4 cents per poun d to I think 5.6 cents per pound, and there are various aspects to this business, right, downstr eam percentage, silver, gold, sulfuric acid and TC/RC. So how should we really capture this reduction in TC/RC for your copper business going forward? I mean, would that Rs. 2,500 crores number that you are operating at, on an annualized basis, would that be maintained? Or you see a downside to it? Just wanted to get a sense of how should we look at it.

So let me just take the second part first. So TC/RCs are going down, and as you said, we have a varied chain. So our guidance would be that we expect next year the quarterly copper EBITDA to be around Rs. 600 crores , so that's how we would model it. I know this year it has been much higher than Rs. 600 crores, running consistently Rs. 700 crores, Rs. 800 crores, but next year with our modeling, we would be around Rs. 600 crores of quarter. That's the guidance we can give. You have to remember that our copper tubes, copper rods, all these three premiums are fairly high and the demand is high. And sulfuric acid, like in Q3 our copper results were quite buoyed by sulfuric acid prices. So, we are confident that we will be able to maintain that around Rs. 600 crores of quarter. The first part of the question was on, I forgot.

Sir, Meenakshi.

Yes, Meenakshi. So if you take coal prices to be at today's level, and remember that these coal prices on the auction can go up and down. Meenakshi coming in would reduce those coal prices from current levels by up to 30%.

Did you say 30% from the current levels?

Yes.

Okay. Got it. And sir, last on the copper piece. So, if TC/RC were to be 5.6 cents per pound for this quarter, how would the EBITDA have moved from Rs. 775 crores that has been reported for this quarter?

I have not calculated that, but I can only tell you that in Q4 you will still not see the full impact of that five, because we will be operating with the concentrate that's already in inventory. So, this impact of this 5 cents per pound you will see from the first quarter of FY ‘26.

Okay. Thank you, sir.

Thank you.

Thank you. The next question is from Ashish Jain from Macquarie, India. Please go ahead.

Hi, sir. Good evening. My first question is actually on Novelis. On the Novelis call, Dev and Steve had referred to their confidence that they will be getting exemption on the import duties in the US. So I actually missed that call, is it possible to kind of elaborate a bit more on that? And how come we are so confident about getting an exemption, what’s the rationale behind that?

Yes. So first of all, it’s very early stage as it re lates to where these tariffs will ultimately settle out, both what the US has done to-date and what other countries might do. But the historical precedence that we have seen of getting exemptions as we have imported to support our project abatement has been positive. We think we are doing exactly what the US government wants in domesticating supply chain and in building the downstream facility in the US with employment to supply the beverage packaging and automotive markets. As it relates to primary aluminum, which primarily comes in from Canada into the US, the US is short of aluminum. And it would take years and years and a lot of investment to bring that supply into the US. And if you go back and look at what happened back in 2018 , I think rationally you understand that the flow of metal from Canada to the US is something that ultimately is needed. And we think longer term, we will see a relief associated with that. We cannot predict in the short term when that relief will occur, but we do believe that on a medium to longer term basis we will see relief associated with the import on primary as well.

Got it, Steve. Thanks. But fair to say that there is a chance that this time it is different given clearly the approach seems to be more aggressive, given the levies on pretty much any import in to US and all, is that the way to think? Or we are actually very confident about an exemption? I know it's a very tough question to answer as nobody knows the right answer to it.

Yes, nobody knows the right answer, but I think we have to take a view. And I think as we think of a rational view, our view is that the prevailing requirements of primary aluminum coming in from Canada to the US and what we are doing at Bay Minette are the right longer term solutions for the market but anything could happen, but that's our view.

Got it. Sir, coming to India, just on the alumi num and copper project, the upstream projects, where are we in terms of hitting the ground on those?

So, I just described that, so the alumina refinery and the copper recycling ground broken construction started. The aluminum smelter expansion and the copper smelter, we are in the process, we have filed for environmental clearance.

Okay, okay. Got it. Thank you so much, sir. And best of luck.

Thank you.

Thank you. Next question is from Indrajit Agarwal from CLSA. Please go ahead.

Hi. Thank you for the opportunity. I again have a question on Novelis. Fundamentally, what happens to scrap prices in case of tariff? And in turn, what happens to scrap spread as a result? I mean, we understand this time it could be different, but how does that flow through?

Steve?

So, again, early on. But as we understand today, scrap would not be subject to the tariffs coming into the US under section 232. So therefore, the short scrap position in the US would be filled from other markets because it will become very attractive with higher overall local premiums rising, the Midwest premium. But then the other international markets will also come under pressure, whether it be Europe, Asia or South America that we do business in. Again, a complicated question, but the nearer term would be that there would be a flow of scrap into the US to fill the short position in the US, and with the capable pricing that would be there.

And the pricing of scrap, is it generally as a percentage of LME or percentage of LME plus Midwest premium, how does the pricing generally work?

Yes, in the US, it trades as a percentage of LME and Midwest premium, so a combination.

Sure. Thank you. That's all from me.

Yep.

Thank you. The next question is from Amit Dixit from ICICI Securities. Please go ahead.

Yes. Hi. Good evening, everyone. And thanks for the opportunity, sir. And congratulations for a great set of numbers. A couple of questions from me. One is that how did the aluminum cost of production move in this quarter? And if you could highlight the prospective sense also that how it is likely to move in Q4? That is the first question.

Okay. The Q3 to Q2 was flattish. I think Q3 to Q4 will be similar. I mean, there are some upward pressures coming in caustic, furnace oil, CP coke, but we think balancing around, coal prices, we may see a little bit of softening. So we think Q4 will be more or less flattish, would not be more than 1% or 2% off from where we are.

And in terms of coal sourcing, sir, when both Meenakshi and Chakla come on-stream, and assuming we are able to extract the full EC limit, so whether you will need linkage and e-auction coal then due to technical or logistical reasons? Or we will meet our entire requirement through captive, provided coal prices remain where they are?

So we will still need to get coal for Dahej, which is in Gujarat. That's about it. Otherwise we should be self-sufficient.

Okay. And 30% you said is including Meenakshi and Chakla, just to be clear?

Yes.

Okay. Great sir. That's it from my side. Thank you and all the best.

Yes. Thank you.

Hi, thank you. Just both questions on CAPEX. Firstly probably on US Novelis, your offline CAPEX in India for the next two years. We already have guidance for this year. If you can maybe talk about how much CAPEX could be there annually for ’26-’27 in Novelis? And one of the peers, obviously, the other peer is putting up capacity dur ing this call, say, they are putting up EAF in steel and aluminum rolling. But they said aluminum rolling, everything is known, there is Chinese suppliers, so there is hardly any room for surpri ses, generally in EAF where they thought there were surprises. But to me it seems to indicate that that is fairly homogeneous supply chain and all. So what has led to the supply for Novelis on that capital cost and delays which the other player is saying it's very relatively easy equipment supply chain and all? So this two-part on overall CAPEX guidance at least for next two years

Yes, you are talking about the Ba y Minette Novelis CAPEX, I will let Steve answer. Just to let you know, the other person is new entrant to the aluminum industry, so quite impressed with their confidence of the aluminum supply chain. But Steve, go ahead.

I can take the CAPEX question.

Yes, go ahead, Dev. I did not catch the full question either. Please go ahead.

Yes. So to your point about how much CAPEX to expect in ‘26 and ‘27. So the way to think about it is that over three years, FY ’25, ’26, ’27, the average CAPEX is $2 billion a year and this year will be more around $1.8 billion, next year will be a little over $2 billion. So you should think about a cumulative CAPEX altogether, including Bay Minette, of about $6 billion over three years. So that's the answer to your specific CAPEX question. Can you just repeat exactly what was the second part of the question, so between Steve and I, we just want to be clear on that.

Sir, the other player, the new entrant into the industry, it's putting up two, there are two CAPEX items, one is the aluminum rolling mill, and the other one is a different kind of EAF where they use different sorting stack but the delay has actually been then there on certain, not on the aluminum. So when asked, they said the equipment supply chain comes from China, it is really standardized, so there is less room for surprise. Actually on the EAF where they are saying more surprise, because it's a kind of an proven technolo gy. So, that seems to indicate that the room for supplies on aluminum CAPEX is worse in that supply chain. So just wanted to understand what has Novelis experienced from what they are saying?

Steve, you want to take that?

So I guess, even I was trying to understand. So wh en we went from our original guidance of 2.7, 2.8 to 4.1, we had explained that because we had moved sites and our civil costs had gone up substantially compared to what we had estimated in the budget. So that was I think about one year ago, and we are now at the 4.1 and we are committed to do this project at the time and at the budget that we had put in. I think commenting on what the other person is saying and the supply chain from China and all, I am not sure that we have much more to say on that.

Okay. Second question would be on the India CAPEX. On the alumina one also, I think initially from what we understood was this is going to be a 2 million tons refinery and the CAPEX for 2 million tons was going to be about $1 billion was our understanding, because there's already infrastructure, the land is right next to Utkal, there is already surplus land which has been acquired over time. So now it's $1 billion for 850 Kt, is that understanding correct? And was it earlier misunderstanding on our side of estimating $1 billion for 2 million tons refinery in two different stages?

We never said $1 billion for 2 million tons, becaus e it's me who is making the comments. So I think what, let me tell you, it's about Rs. 7,000-odd crores, I rounded it off to $1 billion. But what we set in place is like Utkal, this will be built for a 3 million tons refinery. So a large part of the infrastructure, the conveyance systems, the residue handling areas, everything we will build for a 3 million tons refinery. But we put the first line in place, so that's why it 's around Rs. 7,000 odd crores.

Okay. So when you look at three different projects, I think lastly just on execution, it's a very broad plate with three different large projects in India, and obviously Bay Minette is ongoing. How do you try to derisk execution? I mean, I am just going back in history when there were multiple projects that risk of execution. So now you ar e in a phase where you have multiple projects simultaneously, how do you try to derisk on that front?

No, that's a very fair question. And I think, if anything, I wanted to tell you that in many ways at Hindalco, we are going to cut out all the other distraction. We are not going to look at any other new opportunities. So the whole management team is focused on these four projects. We have set up a project monitoring team, a project execution team, we have taken external help of some consulting agencies to do that. So, we are very focused that these projects we are going to bring in on time and on budget. And I think that we will be able to do it because we are extremely focused on it now. There is no other thing in the business we will be looking at besides these projects.

Okay. Thank you and wish you all the best.

Thank you. Next question is from Pathanjali Srinivasan from Sundaram Mutual fund. Please go ahead.

Sir, thank you for the opportunity. I just wanted to get a few things clarified. So you mentioned that the total CAPEX would be $6 billion, so could you give me this breakdown, what are the assets that we are talking about for the $6 billion?

Yes, yes.

Dev?

Yes. So, no, that's not so complicated. So basically if you consider that we have as on date spent about $1.3 billion when it comes to the Bay Minette CAPEX, we still have around $2.8 billion to go. And that is going to happen a little bit in the fourth quarter, but most of it will come in the next two years. So, let's say, it's somewhere in the ra nge of about $1.4 billion is that itself, maybe a little less because this quarter we will spend some more. And then $300 million to $350 million is maintenance CAPEX. And then there are other ongoing improvement projects, the debottlenecking projects which are in the pipeline for which cash still has to go out. I mean, there is Logan debottlenecking, there is Oswego for which some cash has to go up. And also, some cash has to go out for some of the recycling projects like the Ulsan project which we have just commissioned, but cash kind of trails a little behind. So there are other improvement projects, debottlenecking projects, ongoing projects which is forming the rest. So that's really how the math works.

I think you have covered all this in our presentation, it adds up to $4.5 billion, so I am not able to get the math on the remaining $1. 5 billion that is being spent. And also when you say $6 billion, is it accumulative of the current year spending? Are you saying next two years and the current year together is $6 billion, or is it for ‘26, ‘27and ‘28?

No, what I am saying is that ‘25, ‘26, ‘27, you can take it as cumulative of $6 billion.

Okay. And the difference between $6 billion and $4 .5 billion, can you tell me where the split is going?

Yes. So once again, so we are talking about three years’ CAPEX of $6 billion, so let me try again. This is ‘25, ‘26, ‘27. We had spent only about $700 million at the end of last year. So again, I am starting from fiscal year ‘25, right? So that really means that we have to spend $3.4 billion out of the total $6 billion CAPEX in three years, right? So, that is really a big part of it, $3.4 billion. And the rest, about $2.6 billion is basically things like maintenance CAPEX, which you can take it about $1 billion, right. And the rest is other ongoing projects, which is debottlenecking expansions, which I already listed earlier. So that's how it all adds up.

Sir, I think the $4.5 billion you are confusing with just the strategic CAPEX. What Dev is telling you is that the strategic CAPEX plus maintena nce CAPEX plus others is roughly $6 billion, including the current year we are on and FY ‘26 and ‘27.

Got it, sir. Thank you.

Thank you. Next question is from Raashi Chopra from Citigroup. Please go ahead.

Thank you. Could you please repeat the hedge bit again, I missed that earlier on the call.

So the hedge bit, this current Q4 FY ’25, we have 35% of the commodity hedged at $2,600 per ton. And we had ongoing 15% zero collar with the bottom at $2,262 and a ceiling at $2,558. The currency for the quarter is 16% hedged at Rs. 88. And just to round it off, for next year we have 12% of the commodity hedge that $2,700 per ton and 13% of the currency at Rs. 87.33 per dollar.

Thank you. Then what was the alumina volume that was sold during this quarter?

Sorry?

Alumina volume, alumina sales.

Oh, the alumina sales. Alumina sales was 165 Kt in Q3, will be about 180 Kt to 190 Kt in Q4.

On the coal you said that when both Chakla and Meenakshi start then the call cost should go down by about 30%, is that correct?

From today's level, because it's always important where the baseline you are considering, yes.

And both should start like in about two years from now, like proper coal mining?

No, no, Chakla box cut is this year. Meenakshi we just got, so it take us two more years to get all the clearances and start.

When you say this here you mean calendar ‘25 or like now?

Calendar year ‘25, FY ‘26. So, we should be, say, in October, November we are planning for the opening of mine. So coal will start from, let's say, February, March of calendar year ‘26.

Once both these mines are ramped up fully then you are pretty self sufficient, right, I mean, theoretically?

That's the plan.

Okay. And just last thing on the CAPEX, Indi a CAPEX you mentioned would be Rs. 8,000 crores for next year. This year what would be the number and what have you done in nine months for India?

It's about Rs. 6,000 crores. I think in nine months we have spent Rs. 4,400 crores.

Sorry?

Net cash.

Yes, net cash, yes, because we have about Rs. 14,000 crores in treasury and Rs. 12,000 crores gross debt.

Okay. Thank you.

Thank you.

Thank you. Next question is from Parthiv Jhonsa from Anand Rathi. Please go ahead.

Thank you, sir, for the opportunity. Sir, my fi rst question pertains to the downstream aluminum business, it has been quite a flattish Q-on-Q. By when do you expect this number to start giving over $200 or $210 kind of dollar EBITDA number, any words on that, sir?

Yes, I think in Q4 we should be getting close to that number. And next year I am really bullish on the whole thing because the FRP 2A project will also commission, Silvassa will be ramping up quite well. So the $200 number we should be getting close to it in Q4, and next year we should be well into those numbers.

Okay. So my your second question pertains to alumina, it has come off quite a bit from the recent highs. Just wanted to understand your take on it, how do you expect it to go going forward?

Yes, I mean, the $700 was due to sort of a post majeure type of situation that happened with the Guinea bauxite. I think currently the indexes are around $500. So, I don't know, it's going to be in that. $400 Kt to $500 range. You have to remember the sort of more traditional pricing is more like between $350 and $400. So we will have to see the tightness still remains, but currently it's at around $500.

Alright, thank you. Thank you so much.

Yes. Thank you.

Thank you. Next question is from Prateek Singh from DAM Capital. Please go ahead.

Hi, thanks. So Mr. Pai, just a question on alumina itself, did we see a flat kind of a price in this quarter on a Q-on-Q basis for sales, because the EBITDA improvement that we are seeing adjusted for the provision of Rs. 97 crores coming in business? Kind of feel like-to-like movement of the change in selling price of aluminum like $200, would have expected that because we are selling alumina and alumina prices were significantly higher in this quarter, the impact of it would have come a bit more. So, for us the transfer pricing or sales pricing for alumina was flat on Q-on-Q basis?

No, I think the transfer prices in Q3 were higher on a transfer pricing basis. The consolidated or the integrated cost internally we take out any advantage of the thing, but the transfer pricing will follow the market pricing. I think the other one point that has not come up, but I think it was there in our disclosures, and I just want to highlight that for the aluminum upstream business we took Rs. 197 crores of provision related to electricity duty in Mahan on the auxiliary. So this was something that came towards this quarter and we had to take a provision. So the Rs. 197 crores is sitting in the aluminum upstream EBITDA line which you will have to take into account. Then it gives you probably a better picture. The other second thing is the RPO obligations have also gone up. So in Hindalco we take a full provision for the RPO every quarter on the metal prices. So these are the two things that are there in the aluminum upstream EBITDA.

Understood. And the second question is lastly on Novelis. So hypothetically, my understanding is that, even if the assumptions are not there, the tariffs are largely neutral for us, right, because the Midwest premium would remain high in that case. Is that the right understanding that even if there are lower tariffs are neutral for us, apart from near term disruptions or noise around it?

Steve?

Yes. So when you say that even if the exemptions are not there, there will be some compensation from the higher Midwest. Yes, we would like to believe that. With the higher Midwest, it does help us widen the spread. So that is directionally the right thinking. We simply do not see a scenario where either between the countries; Canada, US, Mexico, Korea, we simply do not see a scenario that there will not be a settlement soon around reciprocal tariffs, because if you are following what's the latest discussion that is happening, it is about reciprocal tariffs. So, the door has been opened wide open between the countries to discuss reciprocity. And we feel like this is a signal that there will be a solution in the coming weeks. So, we do not see a scenario where this is not going to get resolved through some discussions and negotiations. But if you still want to believe that there will be no exemptions, we do see that the higher premiums will basically help to offset a very large part of the damage from not getting any refunds.

Thanks, Dev. Just a follow-up on this. So if you can just remind me what happened last time, so were Novelis and few other players were specifical ly exempted or it was a part of the entire injunction for Canada which happened later that Canada entirely was exempt, so everybody benefited and not just us? So is it like this time we are we are applying for the exemption so specifically it would be us, or it would be countrywide like thing for Canada, then we also will be benefited?

Well, so between the US and Canada there was a settlement and duties were kind of exempted for movement of products between Canada and the US entirely, as part of the broader MCA settlement. And when it comes to imports from some of our inter-regional sites like Korea, it goes through an exemption process. Whether everybody be nefited from that is difficult for me to say. But basically between US and Canada, it was a broad exemption. And when it comes to countries like Korea, it was basically a specific exemption, continues to be a specific exemption on application. So that's the way it moves.

Understood. Thanks a lot for this.

You are welcome.

Thank you. Next question is from Amit Murarka from Axis Capital. Please go ahead.

Yes. Hi, good evening. Just I wanted to check what is the hedging gain in nine months of FY ‘25 for you and was there some hedging booked in Q3 as well?

Q3 was sort of I think was a wash, it was about Rs. 26 crores negative.

Okay. And also, the alumina external sales volume, so you have 1 million ton of excess is what I understand, maybe more than that actually. So, why is that the run rate is still 150 Kt to 200 Kt quarterly?

We do not have 1 million excess, we have about 700 Kt excess that we sell.

You would have what 3.73 million, 3.8 million tons of alumina capacity, right?

We do have annual maintenance shutdowns in all these refineries as well. The total amount we can produce and what we sell, roughly, it's around 700 Kt.

Sure. So this is the optimal run rate what you are at then?

Yes. I think that we are putting in a boiler in Utkal. So when that comes in, then we will get more closer to the 850 Kt that we will be able to sell.

And 1 million ton alumina project will commission by when?

Sorry?

The first leg of the alumina expansion, that should get commissioned by when?

It is somewhere in December of ‘27. So, on the hedging I have just been corrected. The Rs. 700 crores gain was last year, this year in the first nine months the gain has been Rs. 90 crores. So really because of the high aluminum prices, I think, we are more or less running at a wash right now.

Thank you. Next question is from Somaiah from Avendus Spark. Please go ahead.

Thanks for the opportunity, sir. I have a few questions on Novelis. So first one in terms of Novelis margins, we had alluded three reas ons which will help us to kind of revert back to somewhere close to Q2 levels. So one was on contract pricing, the other one was on higher recycling and then operating leverage. If you can give a broad sense of which of these is the largest in terms of drivers which would help us take back?

I missed some words, but were you asking about the Q3 versus Q4, was that your question?

No, no. He was asking that between scrap, operational efficiencies, the margins are down, which is the biggest impact. I think it's scrap, right, Dev?

Scrap, yes. I mean, it is really scrap which is the most leading cause. We can attribute it entirely to scrap.

Sorry sir, my question was on our expectations for Q4 where we expect margins to kind of revise, for which we are alluded three reasons. One is the contract pricing, you also mentioned about higher recycling and then you had said about operating leverage, because we were around close to 400 and then 475, 480 Q2 levels. So just trying to understand which would help us larger in terms of quantum in getting back there.

Yes. So clearly we get a big boost from operating leverage because the volume for Q4 are going to be meaningfully higher. As we keep saying that you can expect Q4 volumes to be more around the lines of Q2, we had 904 Kt in Q3, that will be one. Second, after that pricing is going to provide us a meaningful upside, and the rest will come from, let's say, more scrap consumption and other factors. So that is really how I would say it. So I would say that volume, operating leverage therefore, and pricing are the two big factors in Q4 versus Q3.

Got it. So this is because we are able to pass on some higher cost, because earlier we used to have this cost indexation and here we were able to pass it on. Is it cost-led take back from customers, or is it the market environment allows us to take a higher pricing at this point in time?

We have new contracts, higher priced contracts which are taking effect from January 1, and that is what is helping us. So, I am not talking about the inflation indexation here, I am talking about the repriced contracts in particular.

No, these are the contracts that we have entered into. We have been saying that beverage contracts will continue to give us a higher pricing. So these are contracts which have become effective. And these are long-term contracts on higher pricing. So you can call it contracts which are renewed, but at a meaningfully higher price.

Understood. The reason why I am asking this that the contracts are typically three to five years, which means maybe 20%, 30% of the contracts come up for renewal in a year. Which means a similar exercise something that's possible next year when we again come for a renewal, that's the reason I want to understand this.

Yes. So, again, what we have been saying is that the contracts that we have entered into now are much longer tenure contracts generally. So yes, I mean, generally I can only say the same thing that our contracts are now coming at higher prices in beverage packaging. And some contracts will come every year for renewal, but a big bulk of the contracts have really been renewed at higher pricing right until the end of the decade. So overall, the key message here is that, can has been repriced, will continue to get repriced. And that benefit will be seen. Has been seen, but will be seen starting again from Q4 as new contracts come in.

Understood, sir. Sir, also on the scrap outlook, so just keeping the tariff aside, so in general you see now two, three months of this change in regulation in terms of imports for China. So, how are we feeling next six months or one year? Have we seen the max impact of scrap prices going up? Or the demand for scrap will only continue to go up and the prices will only continue to go higher? I am keeping the tariff aside. So in general, I mean, is oversupply in to the market going to be more secondary than primary, and then it’s going to certainly keep the market higher? Just your thoughts on that.

Dev, you want to take that?

Yes, sure. So, I mean, in the short and medium term, it is hard to predict. As we said on our call earlier in the week, we do think that the overall scrap pricing in the market is starting to peak out. Now, how much it moderates back in the short term, medium term is hard for us to predict. We do think that we will be at new levels, higher levels of scrap pricing on a longer term basis. What will moderate that back down is, new technology, effi ciency in collection of scrap until your scrap's being used in processes, higher recycling rates and so forth, that will take time to ultimately see the overall impact into the marketplace. What we at Novelis are doing to protect our margins is to address this headwind that we see is more structural through looking at cost efficiencies, operating efficiencies, portfolio optimization, procurement savings. And we have a number of initiatives that we have launched and are in process. We are not in a place to talk specifically about the total impact of all those projects and the timing, but in the early April time frame we will be able to la y out in a bit more detail what some of those are, so that you can better understand how we progress back towards our longer term EBITDA per ton of $600 per ton over the next several years.

Thank you. Next question is from Ashish Kejriwal from Nuvama Institutional Equities. Please go ahead.

Yes. Hi. Good evening, everyone. So is it possible to share the revenue aluminum which we have sold?.

Sorry?

Is it possible to share the revenue of alumina which sold? We have given the volume, but we haven't shared the revenue, is it possible to share that?

No, we do not give out that, we can only give you the volume, sorry.

Okay. So to put it differently, is it possible to share how much alumina price changes for you in this quarter versus last quarter? I do not want the absolute number, but even if the change if you can give, because we sell on spot as well as on contract basis. So I was just wondering what kind of change we have seen in alumina prices for 3rd Quarter versus this quarter.

You are talking about Q2 to Q3 what was the alumina price movement, is it?

Yes, yes, for us.

Q2 to Q3, I think it followed the index. I think the index was around $375 in Q2 and the index has been around $700 in Q3. So that broadly should tell you the pricing. And as I was saying, currently in January, February it's running at $500.

Understood. But do you think that we sell everythi ng on spot basis or there's a contract basis also?

No, no. Quite a lot of it is on a contract basis, and some parts of it have even got linkage to LME. So you are absolutely right, unlike NALCO or something, we do not have the full advantage of the index.

So that's what sir I was asking , is it possible to share the delt a which we have witnessed in our average alumina price.

No, we do not share it. We would rather not give that.

We have signed for 3 million tons of bauxite, that is enough for 1 million tons of alumina.

Okay. And any pricing also we ha ve signed, or this will be decided on something different basis?

So there is a formula for the pricing. I will get Subir maybe offline to explain that to you.

Sure, sure. And thirdly, in te rms of Novelis when Dev and Steve was talking about scrap prices. Is it fair to assume that the high scrap prices ha ve already hit or will hit in our P&L in fourth quarter? And thereafter, maybe, assuming that further scrap prices do not move, that will not change on an increasing trend from first quarter onwards?

I think that is what Steve just answered in the previous question. I mean, it's difficult to say, but he thinks it has peaked, the scrap prices.

So, sir, pricing is different, sourcing is also gett ing difficult, or we are able to source it at a higher price also?

Steve, you want to take that?

Yes. So we are not worried about sourcing, from a volume standpoint we are getting what we need in the marketplace, it is just more about the pricing itself. As Dev said, one of the drivers in the fourth quarter is our ability to process more scrap metal through the system in our fourth quarter, which still even at the pricing that we see today is an advantage from an overall operating cost efficiency standpoint.

Understood. And sir, lastly on this only, when we are saying that normally we are recycling 61% of the volume, and we have commissioned few recycling plants also. So any guidance which we can give for FY ‘26 that how much we will produce it through the recycling rate?

Yes. So as you know we are commissioning our auto recycling facility at Guthrie, Kentucky, that's underway and progressing. So that will increase the overall volumes throughout 2026 as we get to full capacity of 240 Kt. And then the other one that we are commissioning is our 100% owned UAL recycling facility that started in the month of January, and again will progress over the following several quarters. So there is a good momentum in both operating efficiency at our current facilities and new capacity coming online to absorb more scrap volume.

Thank you very much. Due to paucity of time, we will have to take that as the last question. Participants may connect with the Investor Relations team for further questions. I would now like to hand the conference back to Mr. Satish Pai for closing comments.

Yes. Thank you, everyone, for your attention. I guess this quarter sort of shows the benefit of our integrated business model between upstream and downstream, because as you see the downstream has a little bit of headwind, the upstream has tailwinds. So the consolidated results come out quite well. So, with that, I thank you for your attention.

Thank you very much. On behalf of Hindalco Industries Limited, that concludes the conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.