Hindustan Copper shares jump 18% in 5 sessions; why is the stock rallying at lightning speed?

Data show that the shares of the government-owned copper producer have rallied 18% over the past five sessions (as of the afternoon session on Tuesday), 20% in a month, and 34.50% over the past six months.

In its corporate presentation shared with the stock exchanges on Monday, September 15, Hindustan Copper said there is a significant growth potential for copper consumption.

It said copper demand in the electrical segment is growing due to demand in the infrastructure sector. This is the result of affordable housing schemes, rural electrification, renewable energy, electric vehicles, more urbanisation, etc. It added that government initiatives will further increase growth of the copper-consuming industries.

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About Hindustan Copper

Hindustan Copper is a ‘Miniratna’ Category 1 CPSE, set up in 1967 with 100% Government of India (GoI) ownership. The present GoI shareholding is 66.14%. It is the sole vertically integrated producer of refined copper in India, having facilities for mining, ore beneficiation, smelting, refining and extruding copper rods.

Hindustan Copper owns all the operating mining leases of copper ore in India. It has access to about 45% of India’s copper ore reserves and resources.

The company said that India has 0.2% of the world's copper reserves.

Rajasthan leads with 52.25% of India's copper ore, followed by Madhya Pradesh (23.28%) and Jharkhand (15.14%).

HCL has 160.48 million tonnes of copper ore reserves with an average grade of 1.32%.

Plans ahead

• HCL has planned a capital expenditure of nearly ₹2,000 crore in the next five-six years;

• The company notes that the increased budget for exploration led to 123 million tonnes of additional copper ore reserves and resources in the last two years and will continue to add;

• One of the strategies of the company is acquiring new promising copper deposits in India and abroad by taking part in upcoming mineral auctions.

• It also plans collaboration with M/s CODELCO, Chile, for capacity building and knowledge sharing in the field of mining, beneficiation and exploration; and

• MoU with Indian PSUs to expand mining portfolio. i.e., RITES, IOCL, Coal India Limited and GAIL.

Copper Mining Policy Reforms

Recently, a report said India should urgently go for policy reforms for attracting investment in exploration and mining of copper to ensure a favourable return on investment, as the nation is heavily dependent on imports of the metal.

Copper lies at the heart of the energy transition as a critical component for transforming the country's economy, from the power grid and electric vehicles (EVs) to construction and advanced manufacturing.

"Given the rising copper demand across the world and India's growing copper needs, India must explore and extract more copper, as large resources and reserves lie unexplored and hence not mined.

Policy reforms are urgently needed to attract investment in exploration and mining activities to ensure a favourable return on investment," said a PTI report that quoted the Centre for Social and Economic Progress (CSEP).

The sole domestic copper miner, Hindustan Copper, faces operational inefficiencies, leading to stagnant ore and concentrate production, the report said.

Hindustan Copper Q1 FY26 Results

State-owned Hindustan Copper posted an over 18% rise in consolidated net profit to ₹134.28 crore in the June quarter (Q1 FY26) of FY26, supported by higher revenues.

The company had logged a net profit of ₹113.40 crore in the April-June period of the preceding 2024-25 financial year.

According to an exchange filing, Hindustan Copper's total income rose to ₹526.65 crore in the first quarter against ₹500.44 crore logged in the same period a year ago.

Its expenses were at ₹347.29 crore as against ₹346.32 crore seen in Q1 of FY25.

The consolidated financial results for the quarter ended June 2025 include earnings of subsidiary company Chhattisgarh Copper Limited (CCL) and joint venture company Khanij Bidesh India Limited (KABIL).

Hindustan Copper, under the Ministry of Mines, holds all the operating mining leases for copper ore in the country.