India had a close brush with vulnerability when China, which dominates global rare earth supplies, moved to restrict exports to the country. That moment underscored just how dependent India is on a handful of sources for these strategic minerals, which are critical for everything from renewable energy and electric vehicles to defence systems.
Recognising this, the government has placed rare earths and critical minerals at the centre of its strategic resource policy. Initiatives such as the essential auction of mineral blocks, policy support, and National Critical Mission plans to build a domestic processing ecosystem are aimed at reducing import reliance and creating home-grown capacity.
For investors, this shift is opening up a new set of opportunities. A handful of listed companies stand to benefit as the government accelerates the exploration, extraction, and processing of these resources.
Gujarat Mineral Development Corporation: India’s mining leader turning to critical minerals
Gujarat Mineral Development Corporation (GMIDC) operates primarily in the mining and power sectors, with a broad strategic vision. This vision is embodied in “Project Shikhar,” which aims to achieve fourfold growth by 2030. In addition, the Government of India has also increased its investment plan for rare earth development at GMDC to ₹50 billion, from 12.5 billion.
GMDC’s Portfolio includes Light Rare Earth Oxides of high purity, such as neodymium and Praseodymium, which are integral to making the strongest magnets. These permanent magnets are critical for motors in EVs and wind turbines.
It is developing one of the world’s largest rare earth deposits at Ambadungar, a village in the Chota Udepur district of Gujarat. In fact, GMDC has “reportedly allocated ₹30–40 billion for critical mineral / rare earth / non-lignite projects recently in July.
Project Shikhar charts GMDC’s next phase of growth.
The company has formulated a significant 5-year strategic investment plan totaling ₹134 billion to unlock emerging frontiers, including new lignite, coal, copper, and rare earth projects. About 46% of this capital expenditure is earmarked for land acquisition, 15% for rehabilitation and restoration efforts, and 30% for plant and machinery.
Its core operations span mining and power generation. GMDC is India’s leading merchant seller and the second-largest producer of lignite. In FY25, lignite production was 8.02 million metric tonnes (MMT). The company is targeting a volume growth of 10% to 15% in its existing lignite business for the current year, driven by its four operational mines.
Additionally, GMDC is operationalizing six new lignite mines across Kutch and South Gujarat, which collectively add about 483 MMT of reserves. These new mines are primarily long gestation projects, with volumes expected to begin contributing from FY27 onwards. With these mines, it plans to produce 15 MMT of lignite by the end of this decade.
Expanding into coal, copper, and rare earth opportunities
It has also expanded into Orissa by acquiring three major coal blocks: Baitarni West, Burapahar, and Kudanali-Lubri. Baitarni is GMDC’s flagship mine, expected to become its largest, with a projected peak annual capacity of 15 MMT. Groundbreaking is anticipated this year (FY26), with revenues and sales potentially starting thereafter.
The company also holds over 2.5 billion tonnes of cement-grade limestone reserves in Kutch. This resource is being commercialized in three phases to establish Kutch as a central hub for cement production. A 40-year supply agreement has been signed with JK Cement under Phase I.
Then, there is a copper project in Ambaji, with identified resources of over 10 MMT of copper, zinc, and lead. It’s advancing with the approval of the mining plan, and revenues are projected to accrue from the end of FY30.
Strong financials, but valuations run ahead of history.
From a financial standpoint, it recorded its second-highest annual revenue and the third-highest profit before tax (PBT) in its history in FY25. Total revenue rose by 17% year-on-year to ₹32 billion in FY25. EBITDA (earnings before interest, tax, depreciation, and amortisation) increased 11% to ₹9.9 billion, with a margin of 31%.
PBT increased by 10% to ₹8.9 billion, while profit after tax (PAT) rose 12% to ₹6.8 billion.
Growth was muted in Q1FY26. Revenue declined 10.4% YoY to ₹7.3 billion, while PAT declined 10.9% to ₹1.6 billion.
From a valuation perspective, GMDC is trading at an EV/EBITDA multiple of 19.6x, which is well above the 10-year median of 6.6x. The current industry mean EV/EBITDA is 10.7x, implying GMDC trades at a premium to its peers.
Hindustan Copper: India’s only integrated copper producer
Hindustan Copper (HCL) is a Central Public Sector Enterprise (CPSE) under the administrative control of the Ministry of Mines, Government of India (GoI). It is designated as a ‘Miniratna’ Category I CPSE.
India’s only fully integrated copper producer
HCL owns all the operating mining leases of copper ore in India and has access to about 45% of India’s copper ore reserves and resources. HCL is the sole vertically integrated producer of refined copper in India. HCL operates several central units across India.
This includes the Malanjkhand Copper Project in Madhya Pradesh, the Khetri Copper Complex in Rajasthan, the Indian Copper Complex in Ghatsila, Jharkhand, the Gujarat Copper Project in Gujarat, and the Taloja Copper Project in Maharashtra.
In addition to copper, the company is leveraging its integrated mining-to-refining model to edge into the critical minerals domain. The company has announced plans to bid for critical mineral and rare earth blocks alongside Indian Oil, GAIL, and RITES. The company has recently signed an MoU with Oil India for exploration in strategic minerals, signaling this shift. This partnership aims to leverage Oil India’s expertise in the exploration and production of critical minerals.
Record financial performance strengthens outlook.
From a financial perspective, the company’s revenue increased 20.6% YoY to ₹20.7 billion, driven by increased production volumes. PAT increased 60% to ₹4.7 billion. Revenue and PAT for FY25 were the highest ever recorded by the company. This momentum continued in Q1 FY26, with revenue growing 4.5% YoY to ₹5.1 billion, and PAT rising 18.6% to ₹1.3 billion.
HCL’s vision is to strive for leadership in the metal mining industry and maximize total shareholder return by sustainably exploring, developing, and mining copper ore and associated geologic minerals. The mission includes achieving rapid expansion of mining capacity through the expansion of existing mines, reopening closed mines, and pursuing Greenfield projects.
Expansion plans to triple mining capacity
The company is planning to expand its mine capacity to 12 MMT, from 3.4 MMT in FY25. For this, HCL plans to invest ₹20 billion over the next five years. The majority of this will be allocated to Malanjkhand (₹9 billion), while Khetri and Jharkhand will get ₹2 billion each for augmentation. It also plans to acquire copper deposits in India and abroad to diversify its revenue mix.
HCL has also signed an agreement with Codelco, the world’s largest copper producer (with 200 MT of ore production), as part of a government-to-government initiative. This partnership focuses on knowledge transfer and learning from global best practices.
Valuation-wide, the company is trading at an EV/EBITDA multiple of 37.8x, which is well above the 10-year median of 24x. The current industry mean EV/EBITDA is 23.2x, implying Hindustan Copper trades at a premium to its peers.
Manganese Ore (MOIL): India’s largest manganese ore producer
MOIL also holds the status of a Miniratna Schedule A Central Public Sector Enterprise (CPSE).
India’s largest manganese ore producer
It is India’s largest producer of manganese ore, which accounted for 91.80% of its revenue in FY25. MOIL operates ten mines, consisting of seven underground and three opencast mines. All of its mines are located in the mineral-rich belt of Central India, within the districts of Balaghat, Bhandara, and Nagpur, primarily within a 250-kilometer radius of Nagpur.
Diversified products with niche positioning in EMD
It produces various grades of manganese ore, including high-grade ores (used for ferro manganese production), medium-grade ore (for silico manganese production), blast furnace grade ore (for hot metal production), and dioxide. The company also manufactures value-added products, which contribute 7.82% of its total turnover.
MOIL is the only company in India that produces Electrolytic Manganese Dioxide (EMD). EMD is used in dry cell batteries, the pharmaceutical industry, and the chemical industry. MOIL fulfills about 46% of India’s total requirement for dioxide ore. Its ferro-manganese plant produces high-carbon ferro-manganese alloy.
High-purity manganese is a key input for next-generation EV batteries, often used alongside rare earth magnets and other critical minerals. Additionally, MOIL is in discussions with multiple international firms to tap into reserves of copper, nickel, and vanadium.
These key minerals are critical for clean energy technologies and battery storage. Moil also signed a non-disclosure agreement (NDA) with Zawar Group in March for projects in Finland, targeting nickel, copper, palladium, platinum, gold, and cobalt.
Financial strength, but near-term softness
Financials are strong, too. Revenue in FY25 increased by 9.3% YoY to ₹15.8 billion, while PAT increased by 30.4% as the margin expanded. The momentum slowed in Q1FY26, with revenue falling 29.4% to ₹3.5 billion, while PAT declined 65.8% to ₹520 million, as the margin declined by 2,000 basis points.
Looking ahead, the company’s goal is to double its manganese ore production to 3.50 million MMT by 2030. This growth requires the mechanization of existing mines, the sinking of new shafts, and the acquisition of new leases. MOIL is actively exploring new geographies and other minerals, provided the propositions are economically viable.
This includes acquiring new mines within and outside the country, as well as pursuing strategic alliances and off-take agreements with overseas producers. Valuation-wise, MOIL is trading at an EV/EBITDA multiple of 12.9x, which is well above the 10-year median of 4.4x. The current industry mean EV/EBITDA is 10.6x, implying MOIL trades at a premium to its peers.
Bottomline
India’s push to become self-dependent in rare earths and critical minerals is gathering pace, with auctions and policy support. To this end, GMDC, Hindustan Copper, and MOIL are positioning themselves as early beneficiaries, using their established mining strengths to diversify into emerging mineral opportunities. But, valuations already trade above historical ranges, and execution timelines remain a risk.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.
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About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
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