India had a close brush with geographical risk when China, which dominates global rare-earth supplies, moved to restrict exports to India. 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 reliance on imports and creating homegrown capacity.
On 26 November, 2025, the government has cleared a ₹72.8 billion scheme to boost rare earth magnet manufacturing. The scheme aims to establish an integrated unit in India that will produce 6,000 metric tons of rare-earth permanent magnets annually, thereby increasing self-reliance.
The government will allocate this capacity to five beneficiaries, each with a capacity of 1,200 MTPA. The scheme will run for 7 years, including a two-year gestation period to establish fully integrated manufacturing facilities and five years of incentives linked to actual sales.
For investors, this shift is opening up new opportunities. A handful of listed companies stand to benefit as the government accelerates the exploration, extraction, and processing of these resources.
#1 GMDC: The Rare Earth Bet with a ₹134 Billion War Chest
Gujarat Mineral Development Corporation (GMDC) 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.
GMDC’s portfolio includes high-purity light rare-earth oxides, such as Neodymium and Praseodymium, which are integral to making the strongest magnets. These permanent magnets are critical for motors in Electric Vehicles and wind turbines.
The company is also 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.
GMDC Leans on Project Shikhar to Drive Its Next Leg of Expansion
The company has formulated a significant 5-year strategic investment plan totalling ₹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 operationalising 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.
Diversifying into Coal, Copper, and Critical Minerals
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 commercialised 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.
A Strong FY25, but a Softer Start to FY26
From a financial standpoint, the company’s performance and growth are uneven. After reporting a strong performance in FY25, financials dipped in the first half of FY26. Revenue declined 30% year-on-year to ₹9.8 billion. Operating profit margins nearly halved to 13%, while profit after tax (PAT) also declined significantly. Reported PAT grew 102% to ₹6.3 billion, boosted by an exceptional gain of ₹4.7 billion in the second quarter of FY26.
#2 Hindustan Copper: The Only Pure Play in India’s Copper Rush
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 operating copper ore mining leases 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, with access to about 45% of India’s Copper Ore reserves and resources.
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, signalling this shift. This partnership aims to leverage Oil India’s expertise in the exploration and production of critical minerals.
HCL’s vision is to strive for leadership in the metal mining industry and maximise total shareholder return by sustainably exploring, developing, and mining copper ore and associated geologic minerals. The mission includes rapidly expanding mining capacity through expanding existing mines, reopening closed mines, and pursuing Greenfield projects.
Expansion Plans to Triple Mining Capacity
The company plans to expand its mine capacity to 12.2 MMT from 3.5 MMT in FY25. For this, HCL plans to invest ₹20 billion over the next 5 years. The majority of this will be allocated to Malanjkhand (₹9 billion), with Khetri and Jharkhand each receiving ₹2 billion. It also plans to acquire copper deposits in India and abroad to diversify its revenue mix.
HCL Expansion Roadmap
HCL has also signed an agreement with Codelco, the world’s largest copper producer (producing 200 MT of ore), as part of a government-to-government initiative. This partnership focuses on knowledge transfer and learning from global best practices.
Record financial performance strengthens outlook
From a financial perspective, in the first half of FY26, the company’s revenue increased 21.9% year-on-year to ₹12.3 billion, driven by increased production volumes. PAT increased 48.8% to ₹3.2 billion, as operating profit margin expanded by more than 10 percentage points.
#3 MOIL: The Manganese Monopoly Powering EV Batteries
MOIL (Manganese Ore India) 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 10 mines, comprising 7 underground and 3 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-kilometre 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 industries, and the chemical industry. MOIL fulfils 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.
The company’s ultimate goal is to double its manganese ore production to 3.50 MMT by 2030. This growth requires the mechanisation 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.
Momentum Cools as H1 FY26 Numbers Weaken
Financials are mixed, with strong performance in FY25 recovering in the first half of FY26. Revenue in H1 FY26 declined 11.3% year-on-year to ₹6.9 billion, while PAT declined further by 39.6% to ₹1.2 billion due to falling margins.
Bottomline
Valuation-wise, Hindustan Copper trades close to the broader industry multiple, sitting slightly above its 10-year median. Its recent performance has held up well, suggesting that consistent execution can support the current premium. GMDC, by contrast, commands a valuation far above both its historical average and the industry range, reflecting the market’s expectations from its expansion into critical minerals. MOIL sits at the other end of the spectrum, valued at a discount to peers, yet trading at more than twice its long-term median.
Valuation Assessment (X)
| Company | EV/EBITDA | 10-Year Median | Industry |
| GMDC | 18.8 | 6.9 | 9.5 |
| Hindustan Copper | 33.2 | 27.4 | 33.2 |
| MOIL | 11.8 | 4.5 | 19.5 |
That said, India’s drive to build self-reliance in rare earths and critical minerals is accelerating, supported by a steady pipeline of auctions and policy emphasis. Against this backdrop, GMDC, Hindustan Copper, and MOIL are positioning themselves as early participants, using their established mining capabilities to expand into newer mineral categories. But valuations already reflect a large part of this optimism, and execution timelines across these projects remain a risk that investors should track closely.
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.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
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.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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 articles’ content and data interpretation 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.
