Hindustan Copper Q3 Profit Soars 149% to Rs 156 Crore

Introduction

Hindustan Copper Limited (HCL), a central public sector undertaking, announced remarkable financial results for the third quarter of the fiscal year 2025-26. The company reported a consolidated net profit of Rs 156.23 crore, marking a significant year-on-year increase of nearly 149%. This robust performance was primarily driven by a substantial rise in revenue, reflecting strong operational efficiency and favorable market conditions. Alongside the strong earnings report, the company's board has also approved an interim dividend for its shareholders.

Stellar Quarterly Performance

For the quarter ending December 31, 2025, Hindustan Copper's revenue from operations surged by 109.7% to Rs 687.34 crore, compared to Rs 327.77 crore in the same period of the previous fiscal year. This top-line growth translated directly into enhanced profitability. The Profit After Tax (PAT) jumped 148.5% to Rs 156.23 crore from Rs 62.87 crore in Q3 FY25. The company's Profit Before Tax (PBT) for the quarter stood at Rs 212.52 crore, a 151.7% increase from the Rs 84.43 crore recorded in the corresponding quarter of the previous year. The growth came despite a 101.1% rise in total operating expenses, which amounted to Rs 442.82 crore.

Sequential and Nine-Month Analysis

While the year-on-year figures were impressive, the company saw a sequential moderation in performance. The Q3 PAT was down 16% from the Rs 186 crore reported in the second quarter of FY26. This was accompanied by a 4% sequential decline in revenue from Rs 718 crore in Q2 FY26. For the nine-month period ending December 31, 2025, the company's performance remained strong. The cumulative PAT for the nine months grew by 71% to Rs 477 crore, up from Rs 278 crore in the same period last year. Revenue from operations for the nine-month period increased by 43% year-on-year, reaching Rs 1,922 crore.

Dividend for Shareholders

In a positive development for investors, the Board of Directors of Hindustan Copper has approved an interim dividend of Re 1 per equity share for the financial year 2025-26. The face value of each share is Rs 5. The company has set Friday, February 13, 2026, as the record date to determine the eligibility of shareholders for this dividend. The dividend payment will be made electronically on or before Friday, March 6, 2026.

Market Drivers and Operational Context

The strong financial results are supported by a growing demand for copper, which is a critical component in sectors such as renewable energy, data centres, and electrical wiring. With India currently importing approximately 90% of its copper requirements, there is a significant opportunity for domestic producers like Hindustan Copper. The company's management has stated its ambition to increase copper production threefold to 12 million tonnes per annum by reopening closed mines and enhancing operational capacities to meet this rising demand.

Governance and Operational Red Flags

Despite the strong financial performance, the company faces significant governance and operational challenges. A major concern highlighted is the non-compliance with the Companies Act, 2013, due to the absence of Independent Directors since November 3, 2024, and a Woman Director since June 22, 2025. This has prevented the company from holding a valid Audit Committee meeting. Additionally, there are pending issues such as the execution of a lease deed for land at its Gujarat Copper Project and the evaluation of the financial impact of newly notified Labour Codes, for which no provisions have been made in the current financial statements. These issues pose potential risks and require close monitoring.

Stock Market Reaction

The announcement of the results, which came towards the end of the trading session, saw a volatile reaction in the company's stock price. After hitting a day's low of Rs 577.60, the shares recovered. On the BSE, the scrip declined 3.52% to trade at Rs 585.95. On the NSE, the shares ended the session 0.27% lower at Rs 612 apiece, showing some recovery from deeper intraday losses.

Conclusion

Hindustan Copper has delivered a powerful performance in the third quarter, with substantial growth in both revenue and profitability, rewarding shareholders with an interim dividend. The results are backed by strong industry demand and favorable market dynamics. However, investors should remain cautious of the significant governance and compliance issues that the company needs to address. The swift resolution of these concerns will be crucial for maintaining investor confidence and ensuring sustainable long-term growth.