The aim of the article is to examine the workability of sintered powder material of aluminum alloy (Alumix 321) through severe plastic deformations under the conditions of the equal channel angular rolling (ECAR) process. Accordingly, the stress–strain analysis of the ECAR was carried out through a computer simulation using the finite element method (FEM) by Deform 3D software. Additionally, the formability of the ALUMIX 321 was investigated using the diametrical compression (DC) test, which was measured and analyzed by digital image correlation and finite element simulation. The relationship between failure mode and stress state in the ECAR process and the DC test was quantified using stress triaxiality and Lode angle parameter. It is concluded that the sintered powder material during the ECAR processing failure by a shearing fracture because in the fracture location the stress conditions were close to the pure shear (η and θ¯ ≈ 0). Moreover, the DC test revealed the potential role as the method of calibration of the fracture locus for stress conditions between the pure shear and the axial symmetry compression.