The surge in non-ferrous metals like copper has got investors’ attention on a global basis – LME prices of copper are currently at a record $ 12,902 levels per tonne as against $ 10,600 per tonne levels at the end of calendar year 2025.
Demand for copper has been driven by a shift towards clean energy technology, digital infrastructure, electric mobility, AI data centres and advanced manufacturing sectors, amongst other industries.
For Indian investors keen to leverage the above surge, there are very few investment opportunities within the country. One of the pure-play companies focussed on copper mining and producing related copper products is the government-controlled Kolkata-based Hindustan Copper Ltd (HINDUSTAN COPPER).
The Supply Gap: Why India Imports 98% of its Copper Needs
India has very limited copper ore reserves contributing about 0.2% of world copper reserves. Mine production in the country is only 0.12% of the world’s production, whereas refined copper production is about 2% of world’s production.
Hence the country is heavily dependent on imported copper.
Hindustan Copper holds around two-fifth of the copper ore reserves and resources in India with an average grade of 0.95%.
The Kolkata-based PSU, as on 1 April 2024, had reserves (proved & probable) of about 2.12 million tonnes in terms of copper metal, and total reserves of 7.18 million tonnes in terms of copper metal, according to its annual report of FY25.
The PSU has also highlighted that it is the only vertically integrated copper producer in the country, which produces refined copper from its own mined ore.
Its rivals in the private sector like Hindalco and Vedanta have set up port-based smelting and refining plants in Gujarat and Tamil Nadu, respectively. The large private players in the copper sector typically process imported copper concentrate to produce cathodes, rods, and other products.
Investors on Dalal Street
The Hindustan Copper stock was broadly flat at Rs 559 on Friday, and it has corrected from its 52-week high of Rs 759.2 that was reached on 29 January, 2026.
For a perspective on the PSU stock’s rise, it was at Rs 183.9 on 7 April, 2025.
Other leading non-ferrous player, Hindalco had gained 0.5% to Rs 959.6 in late Friday trading, and not too far from its 52-week high of Rs 1,029.6 that was reached on 29 January, 2026.
Production and sales trends at Hindustan Copper
| FY24 | FY25 | |
| Ore (lakh tonne) | 37.8 | 34.74 |
| Metal in concentrate (tonnes) | 27,404 | 25,241 |
| CC Wire Rod – tolling production (tonnes) | 27,833 | 15,218 |
| Sales – metal in concentrate (tonnes) | 25,630 | 24,457 |
The company has highlighted a fall in production of metal in concentrate (MIC) in FY25 on account of suspension of production at Kolihan mine of the KCC unit, owing to major breakdown in its winding system during the year.
Lower production in FY25 resulted in a drop in sales of metal in concentrate (in tonnes) during FY25. However, a surge in copper prices resulted in the PSU’s consolidated revenue from operations rising 20.6% y-o-y to Rs 2,071 crore during FY25, and its net profit rose 58.3% to Rs 467.4 crore during this period.
Q3FY26 – surge in copper prices drives profits
Copper prices averaged $ 9,180 per tonne in the December 2025 quarter, a rise of nearly 12.4% y-o-y. The Kolkata-based PSU has not provided details of its production and sales volume in the third quarter of FY26.
Its consolidated revenue from operations jumped 110% y-o-y to Rs 687.3 crore in the December 2025 quarter while net profit jumped 151.6% y-o-y to Rs 156.3 crore.
Expansion plans of Hindustan Copper
To leverage the buoyant demand from user industries like clean energy technology and AI data centres, Hindustan Copper is implementing mine expansion plans.
The PSU is increasing its mining capacity at end of FY25 of around 4 million tons per annum to 12 million tons per annum by 2030-31 through expansion of existing mines, re-opening of closed mines and opening of new mines.
Valuations – is it still worth investing?
| Consolidated P/E | Price-to-book value (times) | |
| Hindustan Copper | 81.9 | 18.1 times |
| Hindalco | 12.5 | 1.6 times |
Hindustan Copper trades at a staggering consolidated P/E of 81.9, while Hindalco trades at 12.5 times.
On the valuation matrix, price-to-book value, Hindustan Copper trades at 18.1 times, according to Screener.in. Over the past 10 years, Hindustan Copper has traded on this valuation matrix between 1.2 times and 19.4 times.
Hindalco trades on the above valuation matrix at nearly 1.6 times. Over the past 10 years, Hindalco has traded on the above valuation matrix at between 0.3 times and 2 times.
Investors on Dalal Street
Metal prices including non-ferrous metal like copper tend to be very volatile and it can be very difficult to predict the future direction of their prices.
Hindustan Copper is trading close to the top-end of its valuations based on price-to-book value. What happens from here on could largely depend on the direction of copper prices. Meanwhile, to see how the stock price of the copper companies moves, perhaps add them to your watchlist.
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
The writer and his family have no shareholding in any of the stocks mentioned in the article.
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