4 Mining Stocks to Watch Amid the Commodities Rally

Commodities are witnessing a strong upswing, building on the momentum seen in precious metals such as gold and silver in 2025, as tight supply conditions and robust demand trigger price rallies.

India's aluminium futures on MCX surged to a record territory above Rs 320/kg in early January 2026, mirroring a sharp upswing on the London Metal Exchange (LME), where prices broke US$ 3,000/ton for the first time since 2022 amid tightening global supply.

Then there is copper that continues to trade near record highs, intensifying cost pressures across consumer-facing industries.

This rally in base metals follows last year's sharp surge in gold and silver prices, signalling a broader shift in investor interest towards commodities.

Falling interest rates, a weaker US dollar, and improving expectations around China's economic recovery have further supported the trend, alongside sustained spending on artificial intelligence and energy transition projects.

Beyond base metals, other key commodities such as coal and steel are also in focus, supported by steady domestic demand, infrastructure-led spending, and energy security considerations.

With commodities in a clear uptrend, top mining stocks have moved into the spotlight.

Here are mining stocks to watch amid this backdrop.

#1 Hindustan Copper

First on the list is Hindustan Copper.

Hindustan Copper Limited (HCL) is a Schedule 'A' Mini-Ratna, Category-I Central Public Sector Enterprise under the administrative control of the Ministry of Mines. Incorporated in 1967, it's India's only copper ore miner and holds all the operating mining leases for copper ore in the country.

HCL's core operations span exploration, mining and beneficiation of copper ore, leading to the production and sale of copper concentrate. The company operates copper mines at Malanjkhand in Madhya Pradesh, Khetri in Rajasthan and Ghatsila in Jharkhand.

It also has a primary smelter and refinery at Ghatsila, a secondary smelter and refining facility at Jhagadia in Gujarat, and a continuous cast copper wire rod plant at Taloja in Maharashtra.

Operations at the Jhagadia and Ghatsila smelting/refining facilities have been suspended since 2019 due to business considerations. The operations at the Taloja plant are currently limited to third-party tolling activities.

The company controls nearly two-fifths of India's copper ore reserves and resources, with an average ore grade of around 0.95%. It's also the only vertically integrated copper producer in the country, manufacturing refined copper entirely from its own mined ore.

In a strategic move, HCL signed a landmark Memorandum of Understanding with CODELCO, Chile's state-owned copper mining company, in April 2025. The agreement aims to facilitate the exchange of technical expertise and strengthen capabilities in mineral exploration and processing.

On the financial front, over the past five years the company's revenue has seen a growth of 20%, meanwhile, net profit grew from Rs 1,104 m in FY20 to Rs 4,674 m in FY25.

The company's five-year average ROE and ROCE stand at 14.9% and 17.8%.

Hindustan Copper's Financial Snapshot

Source: Equitymaster

Going forward, HCL is implementing an ambitious mine expansion program to scale up capacity from around 4 million tonnes per annum at present to 12 million tonnes per annum by 2030-31.

This will be achieved through the expansion of existing mines, reopening of closed mines and development of new mining projects.

For more details, see the HINDUSTAN COPPER company fact sheet and quarterly results.

#2 Hindustan Zinc

Next on the list is Hindustan Zinc.

Hindustan Zinc is a leader in the critical minerals and energy transition space, backed by scale, cost leadership, strong market share, and a solid financial foundation.

The company is the world's largest integrated zinc producer and ranks among the top five silver producers globally, making it India's only listed integrated precious metals company.

It operates some of the world's largest and lowest-cost zinc mining assets, including the Rampura Agucha mine, the largest underground zinc mining operation globally.

Hindustan Zinc also features among the lowest-cost zinc producers worldwide, with its mines placed in the first decile of the global zinc cost curve.

In India, the company is the largest and only integrated producer of zinc, lead, and silver, and the country's sole primary zinc alloy producer. Its Sindesar Khurd mine ranks among the top five silver-producing mines globally.

In FY25, Hindustan Zinc delivered a record performance, surpassing 13.1 million tonnes of metal reserves, net of 1.2 million tonnes of production, a three-fold increase compared to FY20.

The company also has the second-largest zinc reserves and resources base globally, with reserves of around 453.2 million tonnes and an estimated mine life of over 25 years.

Operational efficiency and financial strength remain key pillars, with the company commanding around 77% market share in India's primary zinc market and maintaining a consistent EBITDA margin of about 50%.

On the financial front, over the past five years the company's revenue has seen a growth of 12.9%, meanwhile, net profit grew at a CAGR of 8.8%.

The company's five-year average ROE and ROCE stand at 52.6% and 62.3%.

Hindustan Zinc's Financial Snapshot

Source: Equitymaster

Backed by an investment of Rs 120 bn, the company aims to nearly double its metal production capacity to 2 million tonnes per annum by 2030, strengthening its position as a low-cost, long-life producer in the global zinc market.

For more details, see the HINDUSTAN ZINC company fact sheet and quarterly results.

#3 Coal India

Next on the list is Coal India.

Coal India Limited (CIL) is a state-owned coal mining major that was incorporated in November 1975.

From a modest production of 79 million tonnes in its year of inception, CIL has grown to become the world's largest coal producer.

The company's mining operations are spread across eight Indian states, where it manages 85 mining areas and operates a total of 310 working mines.

Across eight Indian states, CIL operates in 85 mining areas, managing a total of 310 working mines, consisting of 129 underground, 168 opencast, and 13 mixed mines and also manages other establishments like workshops, hospitals, and so on.

Coal India operates Asia's largest opencast coal mine at Gevra under its subsidiary SECL and plays a critical role in supporting the "Make in India" initiative by ensuring energy security and enabling globally competitive industrial growth.

In FY25, Coal India contributed around 74% of India's total coal production, underlining its dominant position in the domestic coal mining sector and its strategic importance to the country's power and industrial ecosystem.

On the financial front, over the past five years the company's revenue has seen a growth of 9.4%, meanwhile, net profit grew at a CAGR of 16.2%.

The company's five-year average ROE and ROCE stand at 41.6% and 53.7%.

Coal India's Financial Snapshot

Source: Equitymaster

Going forward, Coal India plans to expand renewable energy deployment beyond 3 GW to accelerate the net-zero roadmap.

For more details, see the COAL INDIA company fact sheet and quarterly results.

#4 NMDC

Next on the list is NMDC.

NMDC Limited, India's largest producer of iron ore, is a Navratna Public Sector Enterprise under the Ministry of Steel, Government of India.

With over six decades of experience, it specialises in mechanised, cost-efficient, and sustainable mining, serving markets both within India and internationally.

NMDC has a geographically diversified mining presence across India. Its core iron ore operations are concentrated in Chhattisgarh and Karnataka, where it operates some of the country's most advanced mining complexes, including Bailadila, Bacheli, and Donimalai.

Beyond iron ore, the company operates a mechanised diamond mine at Panna in Madhya Pradesh and has expanded its footprint through coal mining joint ventures and mineral development projects in Jharkhand.

The company is also present in Telangana through its sponge iron unit at Paloncha and in Jammu & Kashmir via JKMDCL.

On the financial front, over the past five years the company's revenue has seen a growth of 15.4%, meanwhile, net profit grew at a CAGR of 12.7%.

The company's five-year average ROE and ROCE stand at 28.3% and 39.7%.

NMDC's Financial Snapshot

Source: Equitymaster

Going forward, the company plans to expand its mining and mineral processing operations to cater to rising demand from both domestic and international markets.

It aims to scale up production capacity to 100 million tonnes per annum by 2030 through a combination of process improvements and capacity expansion initiatives.

For more details, see the NMDC company fact sheet and quarterly results.

Conclusion

A rising commodity cycle can create favourable conditions for mining stocks, as higher prices typically translate into stronger revenues, improved margins, and healthier cash flows for producers.

Companies with large reserves, low production costs and long mine lives are well positioned due to price strength, especially in commodities such as metals, coal and minerals that are critical to infrastructure, energy transition, and industrial growth.

That said, mining stocks are cyclical in nature and are sensitive to global growth trends, policy changes, and commodity price volatility. They are best approached with selectivity and a medium-to-long-term perspective rather than a short-term price point of view.

For investors, exposure to fundamentally strong mining companies can make sense as part of a diversified portfolio during a commodity upcycle.

Avoiding over-concentration is the key to managing risk in these stocks.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

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