India’s non-ferrous metal sector is entering a crucial expansion phase as Hindustan Copper and Hindustan Zinc unveil multi-year growth blueprints that align with the nation’s clean-energy, infrastructure, and EV megatrends, setting the stage for a new industrial metals cycle.
Why Hindustan Copper and Hindustan Zinc Are Poised for Multi-Year Growth?
Hindustan Copper stands as India’s only integrated copper producer — spanning mining to refined output — and controls about 45% of the nation’s copper reserves. This dominant position gives it a strategic advantage amid surging domestic copper demand from renewable power and EV manufacturing sectors.
Big Expansion Plans and Investment Commitments The company’s mining capacity is set to triple from 4 MTPA to 12 MTPA by 2031, supported by a ₹2,000 crore capital investment. This expansion aims to substantially increase refined copper output and improve profitability through economies of scale and operational efficiency.
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The firm’s FY25 performance highlights strong fundamentals with revenue of ₹2,071 crore and profit after tax of ₹469 crore. India’s low copper consumption (0.6 kg per person versus the global average of 3.2 kg) suggests a long runway for growth as EV adoption and renewable projects scale up toward the 500 GW national target by 2032.
Hindustan Zinc, on the other hand, commands global leadership as the world’s largest zinc producer and among the top five in silver output. With a 77% market share in India’s zinc segment, the company continues to build on its scale advantage while diversifying into new revenue verticals.
Its production ramp-up targets 2 MTPA in metals and 750 MT in silver output by FY27. The company enjoys one of the lowest production costs globally at $1,052 per tonne, alongside a robust EBITDA margin of 51%. Over five years, Hindustan Zinc has maintained an exceptional 9% average dividend yield — a testament to its cash flow strength.
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Beyond zinc, Hindustan Zinc is now investing in critical minerals, aiming to commission 30 ktpa alloy capacity and 510 ktpa fertilizer units by FY26. Additionally, it is developing tungsten and potash blocks, positioning itself strategically in India’s mineral diversification plan supporting green energy transition.
Investor Takeaway: Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Hindustan Copper and Hindustan Zinc are both entering a long-term value creation phase. Their expansion programs and strong balance sheets could reward patient investors, provided they maintain staggered entries and monitor commodity volatility closely.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment adviser before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
