Hindustan Copper Q3 Profit Soars 148% to ₹156 Crore

Introduction

Hindustan Copper Limited (HCL), India's only vertically integrated copper producer, announced remarkable financial results for the third quarter ending December 2025. The state-owned company reported a 148.5% year-on-year surge in its standalone net profit, which stood at ₹156.31 crore. This significant growth was primarily fueled by a rally in global copper prices and robust domestic demand, reinforcing the company's strong market position.

Stellar Financial Performance in Q3

The company's performance during the quarter was strong across all key metrics. Revenue from operations more than doubled, climbing 109.7% to ₹687.34 crore compared to ₹327.8 crore in the same period last year. This substantial increase in topline translated directly into improved profitability. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by over 100% to ₹244.4 crore from ₹108 crore in the year-ago quarter. Furthermore, the company successfully expanded its operating margins to 35.6%, an increase of 270 basis points from 32.9% last year, showcasing enhanced operational efficiency.

Drivers Behind the Growth

The primary catalyst for Hindustan Copper's impressive quarterly performance was the significant uptick in global copper prices. Favorable international market dynamics allowed the company to realize better prices for its products. This was complemented by strong and sustained domestic demand for copper, which is a critical component in sectors like power, construction, and telecommunications. The company's ability to maintain efficient operations and keep finance costs under control, at just ₹2.03 crore for the quarter, also played a crucial role in bolstering its bottom line.

Operational Highlights and Dividend Announcement

In a move to reward its shareholders, the Board of Directors approved an interim dividend of ₹1 per equity share, which represents 20% of the face value of ₹5. The record date for this dividend has been set for February 13, 2026. On the operational front, the company's expenses included ₹191.79 crore towards employee benefits. This figure includes a one-time provision of ₹95.75 crore for a new Post-Retirement Medical Scheme (PRMS), reflecting the company's commitment to employee welfare.

Strategic Expansion and Future Outlook

Hindustan Copper is focused on long-term growth and has laid out ambitious expansion plans. The company intends to increase its mining capacity more than threefold, from the current level of around 4 million tonnes (MT) to over 12 MT. This expansion will be supported by a capital expenditure of approximately ₹2,000 crore over the next five to six years. The management has provided positive guidance for the fiscal year 2026, expecting volume growth of about 20% and aiming for margins to remain above 40%. These plans are set to solidify HCL's leadership in the domestic market.

Key Corporate Developments

Recent corporate developments have further strengthened the company's prospects. HCL was recently declared the preferred bidder for the Baghwari–Khirkhori copper block in Madhya Pradesh, securing a valuable asset for future production. Additionally, the company announced the commencement of operations at its Kendadih Copper Mine in Jharkhand, which will contribute to its production volumes. These strategic moves are aligned with the government's focus on mineral security and domestic manufacturing.

Market Reaction and Stock Performance

The company's strong financial results and positive outlook have been well-received by the market. The stock has delivered substantial returns to investors, rising by 150% over the last 12 months. Much of this gain has been concentrated in the months of December and January. Following the results announcement, the share price has been fluctuating, trading around ₹609.8, as investors digest the strong performance and evaluate the company's future growth trajectory.

Conclusion

Hindustan Copper's third-quarter results highlight a period of exceptional growth, driven by favorable market conditions and solid operational execution. The significant increase in profit and revenue, coupled with strategic expansion plans and a commitment to shareholder returns through dividends, positions the company for sustained growth. As it moves forward with its capacity expansion and leverages strong domestic demand, HCL is well-placed to play a pivotal role in India's industrial and infrastructure growth story.