Metal stocks are being driven by long-term demand from infrastructure, construction, manufacturing, automobiles, power, and the energy transition. 

However, investors should look beyond revenue growth and focus on expanding margins.

Rising margins indicate better cost efficiency, stronger pricing power, improved product mix or higher capacity utilisation. 

Against this backdrop, here are 3 metal stocks with expanding margins.

#1 Tata Steel 

First on the list is Tata Steel. 

Tata Steel is a major global steel producer with a strong and increasingly important India business. The company is a part of the Tata Group.

Over the last few years, Tata Steel has seen its operating margins move gradually higher from 10.5% in FY24 to 15.4% in FY26.

Financial Highlights – Tata Steel

March 2024March 2025March 2026
Net Sales (m)2,291,7082,185,4252,321,399
Operating Margin10.512.315.4
Operating Profit 241,148268,390357,542
Net Profit -49,09631,738108,858

Source: Equitymaster

On the financial front, consolidated revenues for the first quarter of FY27 stood at about Rs 607.94 bn, and EBITDA was Rs 93.7 bn. 

On per ton basis, 1Q EBITDA improved by about Rs 2,400 per ton YoY and by about Rs 1,490 per ton on QoQ basis and is presently tracking close to about Rs 13,000 per ton consolidated levels, which is effectively a 15% margin. 

ALSO READ

Management says the company witnessed price spikes in energy prices, freight and insurance, natural gas, and logistics costs. With alternative sources and mitigation plans, Tata Steel expects the impact to taper down in the coming quarters. 

The board approved the final investment approval for the 4.8 MTPA expansion in long products capacity covering wire rods and rebars, including solutions beyond that, at the NINL site for an investment of Rs 338.73 bn towards the core project of the steelmaking steel capacity expansion. 

This will take the site to 6.2 MTPA at the end of the first phase of the expansion as part of the overall strategy to build 10 MTPA in that site. Tata Steel is also expanding its iron ore mining capacity in the MKB mines which are part of NINL by 15 million tons per annum of iron ore in phases.

#2 Hindustan Copper 

Next on the list is Hindustan Copper’s stock. 

Hindustan Copper is a Government of India public sector enterprise under the Ministry of Mines. 

It was incorporated on 9 November 1967 and is the country’s only vertically integrated copper producer, carrying out the entire value chain—from copper ore mining and beneficiation to smelting, refining, and the production of refined copper products.

Financial Highlights – Hindustan Copper

March 2024March 2025March 2026
Net Sales (m)17,17020,71030,779
Operating Margin 35.1%39.4%49.9%
Operating Profit 6,0228,15715,345
Net Profit 2,9574,6749,207

Source: Equitymaster

Hindustan Copper has seen its operating margins surging from 35.1% in FY24 to 49.9% in FY26. It reported solid numbers for Q1 FY27. Revenue was up 82% YoY at Rs 9.37 bn. Net profit was Rs 3.53 bn, up 63% YoY. The EBITDA was up 173% at Rs 4.71 bn. 

Hindustan Copper has a strong roadmap for the future. The company is targeting a major expansion in copper mining capacity, from around 4 MTPA currently to 12.2 MTPA by FY31, potentially more than tripling volumes. 

Key projects include expansion at Malanjkhand, development of Khetri in Rajasthan, and expansion of the Ghatsila/Indian Copper Complex in Jharkhand.

ALSO READ

#3 Hindustan Zinc 

Last on the list is Hindustan Zinc.

The company is one of India’s largest producers of zinc, lead and silver, with its major mining and smelting operations concentrated in Rajasthan. It is a subsidiary of Vedanta Limited.

Financial Highlights – Hindustan Zinc 

March 2024March 2025March 2026
Net Sales (m)289,320340,830408,440
Operating Margin 50.953.956.7
Operating Profit 147,300183,710231,540
Net Profit 77,590103,530138,320

Source: Equitymaster

During Q1FY27, Hindustan Zinc reported the highest-ever EBITDA of Rs 80.74 bn, resulting in a record net profit of Rs 54.69 bn, marking a new milestone for the company. 

On growth projects, it’s making progress as planned. For the 250 KTPA integrated zinc smelter at Debari, mine development activities have started to match the mining capacity. 

For the tailings reprocessing plant, construction activities have started, and site mobilisation for the infrastructure development is complete. 

ALSO READ

The other 2 key projects – hot acid leaching plant at Dariba and fertilizer plant at Chanderiya – are on track to be completed by the second quarter of the year. 

The management says they are committed to executing their growth projects with discipline, maintaining industry-leading cost positions, strengthening their resource base, and prudently allocating capital to maximise long-term returns. 

Conclusion

The long-term outlook for metal remains encouraging, supported by India’s infrastructure expansion, electrification, renewable energy, EVs, data centers, and rising power demand.

However, a strong industry outlook does not automatically make every metal stock a good investment. Investors should carefully evaluate each company’s valuation, debt, profitability, cash flows, capacity-expansion plans, execution track record, and return on capital before investing. 

Happy investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…

The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein.  The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors.  Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary