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    Home»Precious Metal»Hindustan Copper reaffirms FY26 volume growth guidance, plans higher ore output
    Precious Metal

    Hindustan Copper reaffirms FY26 volume growth guidance, plans higher ore output

    August 17, 20252 Mins Read


    Hindustan Copper (HCL) is maintaining its 15% volume growth for this financial year ending March 2026, supported by operational efficiencies and cost control.

    Chairman and Managing Director Sanjiv Kumar Singh said the aim is to produce about 4 million tonnes of copper ore in FY26, with nearly 31,000 tonnes of metal in concentrate (MIC), compared to 24,000 tonnes achieved last year, indicating strong growth.

    In the April–June 2025 quarter (Q1FY26), the state-run miner reported revenue of ₹516 crore, an operating margin of 41%, and a net profit of ₹134 crore.

    According to Singh, HCL has also set a capital expenditure target of ₹350 crore for FY25–26 and is on track to meet it, with efforts to sustain healthy EBITDA margins.

    On pricing trends, Singh noted that copper rates have been broadly stable despite some short-term volatility. He pointed out that long-term fundamentals remain strong, driven by the global transition to renewable energy and electric vehicles.

    He also highlighted that artificial intelligence has emerged as a major demand driver, with new data centres consuming large amounts of copper.

    In January 2025, Hindustan Copper Ltd (HCL) signed a 20-year mine developer and operator (MDO) agreement with the JSW Group, which also includes an extension clause. Singh explained that the mine is close to starting operations. The company has already secured environmental clearance from the Government of India, and the lease deed with the state government is expected to be signed soon.

    Pre-mining activities are underway, and operations are likely to begin within the next few months, starting with dewatering of the mine.

    Singh highlighted that the arrangement with JSW Group is structured on a revenue-sharing basis. Hindustan Copper’s share in the MDO is 12.5%.

    Singh further clarified that Hindustan Copper has not received any critical mineral block so far.

    Hindustan Copper’s current market capitalisation is ₹23,314 crore. The stock is currently trading at ₹241 as of 9:34 am on the NSE and has declined 25% over the last year.

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