3 Stocks to Watch as Cabinet Pushes Critical Mineral Extraction

The Union Cabinet approved a Rs 15 bn incentive scheme under the National Critical Mineral Mission to promote recycling of critical minerals such as lithium, cobalt, copper, nickel, and rare earth elements.

This 6-year scheme (FY26 to FY31) aims to develop at least 270 kilo tonnes of annual recycling capacity, resulting in around 40 kilo tonnes of annual critical mineral production.

Here are 3 stocks to watch as cabinet pushes mining of critical minerals.

#1 GMDC

First on our list is Gujarat Mineral Development Corporation (GMDC).

The company has laid a clear vision to develop an end-to-end rare earth elements (REE) value chain from mining, processing, separation, and end-product manufacturing. The company is establishing one of the world's top rare earths processing hubs in India.

The hub will bring together the entire rare earth elements value chain and enable players to engage in downstream activities across industries such as metals and alloys, NdFeB, magnets, electric motors, glass, and optical glass manufacturing in India.

The company is developing one of the world's largest, rare earth deposits in Gujarat. It consists of an open pit mine, processing plants, tailings storage facility, water supply, bulk power supply, mine infrastructure, workshops, offices, modern residential facilities with a best-in-class living ecosystem.

GMDC Financial Snapshot (FY23-25)

	FY 23	FY 24	FY 25
Net Sales (Rs m)	34,979	24,629	28,508
Sales Growth %	28	-29.6	15.8
Net Profit (Rs m)	12,044	5,974	6,858
ROCE %	28.5	13.1	13.7

Data Source: Equitymaster

On the financial front, the company reported revenues of Rs 7,326 m for Q1 FY26, against Rs 8,181 m YoY. Net profits were Rs 1,639 m, a drop from Rs 1,841 m in Q1 FY25.

GMDC's future plans are centered around significant expansion and diversification, driven by high investments in rare earth elements and coal mining.

To know more check the GMDC fact sheet and latest quarterly results.

#2 NALCO

Second on our list is National Aluminium Company (NALCO).

The company is entering into critical mineral extraction. NALCO, known for aluminium production, is diversifying into critical minerals through both domestic exploration and overseas ventures.

It part of a joint venture called Khanij Bidesh India Ltd (KABIL), which has acquired five lithium mines in Argentina and is conducting detailed exploration to assess commercial viability.

NALCO is also exploring the possibilities of investing in lithium refining operations in Australia and is looking at acquiring exploration rights for critical mineral blocks in India when auctions occur.

Additionally, Nalco is working on extracting gallium, another critical mineral, with plans for commercial production within two years.

These initiatives are part of Nalco's strategy to support India's push for strategic mineral security and to diversify its business beyond aluminium.

NALCO Financial Snapshot (FY23-25)

	FY 23	FY 24	FY 25
Net Sales (Rs m)	142,569	131,492	167,876
Sales Growth %	0.3	-7.8	27.7
Net Profit (Rs m)	14,347	19,885	53,247
ROCE %	14.2	19	39.9

Data Source: Equitymaster

On the financial front, the company reported revenues of Rs 38,069 m in Q1 FY26, against Rs 28,561 m in the corresponding period last year. The net profits jumped to Rs 10,639 m in Q1 FY26, from Rs 6,012 m YoY.

To know more check the NALCO fact sheet and latest quarterly results.

#3 Vedanta

Next on our list is Vedanta Ltd.

Vedanta is a major Indian multinational natural resources and diversified conglomerate. It operates primarily in mining, oil and gas, metals, and power sectors.

The company's portfolio includes production of zinc, lead, silver, aluminium, iron ore, steel, copper, nickel, and has significant oil and gas operations through its Cairn Oil & Gas division.

Vedanta is also building its critical minerals footprint, exploring copper, nickel, cobalt, chromium, vanadium, tungsten, and Platinum Grade Elements (PGEs) in Maharashtra, Rajasthan, Bihar, Arunachal Pradesh, Karnataka, and Chhattisgarh.

It secured 4 mineral blocks in the fourth round of India's critical mineral auctions, including vanadium and graphite in Arunachal Pradesh and cobalt, manganese, and iron (poly-metallic) in Karnataka.

Its subsidiary Hindustan Zinc won tungsten blocks in Andhra Pradesh and Tamil Nadu.

Vedanta Financial Snapshot (FY23-25)

	FY 23	FY 24	FY 25
Net Sales (Rs m)	1,473,080	1,437,270	1,529,680
Sales Growth %	11	-2.4	6.4
Net Profit (Rs m)	145,060	75,390	205,350
ROCE %	32	36.8	39.3

Data Source: Equitymaster

On the financial front, the company reported revenues of Rs 378,240 m for Q1 FY26, against Rs 357,640 in the corresponding period last year. The profit after tax dropped to Rs 44,570 m in FY26, against Rs 50,950 m in Q1 FY25.

Moving forward, the company is looking at a major demerger process to split its diversified conglomerate into five independent, sector-focused companies.

The demerger has faced some regulatory hurdles but has largely progressed toward completion, with extensions given for final approvals from the National Company Law Tribunal (NCLT).

Conclusion

The Indian government's focus on critical minerals is a top-tier national priority, driven by the country's ambitious goals for clean energy transition, economic growth, and national security. The central piece of this strategy is the National Critical Mineral Mission (NCMM).

By taking a holistic and coordinated approach, the Indian government is aiming to build a resilient and self-reliant ecosystem for critical minerals, which will be fundamental to its economic progress and strategic autonomy in the coming decades.

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.

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