Investment In and Advances to Non-Consolidated Affiliates and Related Party Transactions

3 Months Ended

Jun. 30, 2026

5. INVESTMENT IN AND ADVANCES TO NON-CONSOLIDATED AFFILIATES AND RELATED PARTY TRANSACTIONS

Included in the accompanying condensed consolidated financial statements are transactions and balances arising from business we conducted with our equity method non-consolidated affiliates.

Alunorf

Alunorf is a joint venture investment between Novelis Deutschland GmbH, a subsidiary of Novelis, and Speira GmbH. Each of the parties to the joint venture holds a 50% interest in the equity, profits and losses, shareholder voting, management control, and rights to use the production capacity of the facility. Alunorf tolls aluminum and charges the respective partner a fee to cover the associated expenses.

UAL

UAL is a joint venture investment between Novelis Korea Ltd., a subsidiary of Novelis, and Kobe. UAL is a thinly capitalized VIE that relies on the regular reimbursement of costs and expenses from Novelis and Kobe. UAL is controlled by an equally represented board of directors in which neither entity has sole decision-making ability regarding production operations or other significant decisions. Furthermore, neither entity has the ability to take the majority share of production or associated costs over the life of the joint venture. Our risk of loss is limited to the carrying value of our investment in and inventory-related receivables from UAL. UAL's creditors do not have recourse to our general credit. Therefore, UAL is accounted for as an equity method investment, and Novelis is not considered the primary beneficiary. UAL currently produces flat-rolled aluminum products exclusively for Novelis and Kobe. As of June 30, 2026, Novelis and Kobe both hold a 50% interest in UAL. We did not make additional contributions to UAL in the three months ended June 30, 2026. During the three months ended June 30, 2025, we made additional contributions to UAL in the amount of $6 million.

AluInfra

AluInfra is a joint venture investment between Novelis Switzerland SA, a subsidiary of Novelis, and Constellium SE. Each of the parties to the joint venture holds a 50% interest in the equity, profits and losses, shareholder voting, management control, and rights to use the facility.

The following table summarizes the results of operations of our equity method non-consolidated affiliates in the aggregate and the nature and amounts of significant transactions we have with our non-consolidated affiliates. The amounts in the table below are disclosed at 100% of the operating results of these affiliates.


	Three Months Ended June 30,
in millions	2026		2025
Net sales	$	600	$	447
Costs and expenses related to net sales	593		445
Income tax (benefit) provision	(1)		1
Net income	$	8	$	1

Purchases of tolling services from Alunorf	$	78	$	79

The following table describes related party balances in the accompanying condensed consolidated balance sheets. We had no other material related party balances with non-consolidated affiliates.


in millions	June 30, 2026		March 31, 2026
Accounts receivable, net — related parties	$	305	$	197
Other long-term assets — related parties	6		6
Accounts payable — related parties	421		334

Return of Capital

We paid a return of capital to our common shareholder in the amount of $35 million during the first quarter of fiscal 2026. We did not pay a return of capital to our common shareholder in the first quarter of fiscal 2027.

Equity Contribution

During fiscal 2026, the Company received $950 million of equity contributions from Hindalco, indirectly through Hindalco's subsidiary, AV Minerals (Netherlands) N.V., pursuant to subscription agreements. These transactions were recorded as additional paid-in capital. See Note 1 – Business and Summary of Significant Accounting Policies for further details.

Brand License Agreement with Aditya Birla Group

On August 4, 2026, the Company's Board of Directors approved the Company entering into an Intellectual Property License Agreement (the "IPL Agreement") with Birla Group Holdings Private Limited, an affiliate of Hindalco. Hindalco is a member of the Aditya Birla Group, a multinational conglomerate headquartered in Mumbai, India. Effective July 1, 2026, the IPL Agreement grants the Company and certain subsidiaries the right to use specified Aditya Birla Group trademarks and related intellectual property in connection with their businesses.

Under the IPL Agreement, the Company is required to pay an annual royalty generally equal to 0.25% of consolidated net revenue, subject to specified minimum and maximum thresholds, including a limitation based on consolidated profit before tax. No royalty is payable for a fiscal year in which consolidated profit before tax is negative. For fiscal 2027, the parties have agreed that the royalty payable under the agreement will not exceed $24 million (INR 2.25 billion). Royalty expense under the agreement will be recognized beginning in the quarter ending September 30, 2026.