Hindustan Copper delivered exceptional financial results for the June quarter, with revenue surging 81.36% year-on-year to ₹936.50 crore compared to ₹516.4 crore in the same period last year. According to the latest regulatory filing, the company's net profit more than doubled to ₹352.37 crore from ₹134.25 crore in the corresponding quarter of the previous year, representing a 162.5% year-on-year increase. However, on a sequential basis, net profit declined 20.69% from ₹444.27 crore reported in Q4FY26, while revenue also declined 18.99% quarter-on-quarter from ₹1,156.08 crore reported in Q4FY26. The strong performance was driven by robust demand and favorable market conditions.
The company's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) more than doubled to ₹507.5 crore from ₹212.3 crore in the same quarter last year. As reported in the regulatory filing, EBITDA margin expanded significantly to 54% from 41% in the previous year, indicating improved operational efficiency. This margin expansion demonstrates the company's ability to capitalize on higher copper prices and operational improvements. Total expenses stood at ₹481.83 crore in Q1FY27, compared with ₹347.29 crore in the corresponding quarter of the previous financial year. The company noted in its Q1 filing that consolidated results include Chhattisgarh Copper (CCL), in which HCL holds 74%, and Khanij Bidesh India (KABIL), in which HCL holds 30%. Profit before tax more than doubled to ₹471.77 crore in the June quarter from ₹179.36 crore recorded in the same period last year, reflecting a sharper rise in earnings compared with revenue growth.
Earnings per share from continuing operations stood at ₹3.64 in Q1FY27, compared with ₹4.59 in the previous quarter and ₹1.39 in Q1FY26. Both basic and diluted EPS stood at ₹3.64 in Q1FY27. The company's operational efficiency improvements are evident in the significant reduction in total expenses, which declined from ₹596.55 crore in Q3FY26 to ₹481.83 crore in Q1FY27. As per the company's filing, total income similarly rose to ₹953.60 crore from ₹526.65 crore in the year-ago period, demonstrating the company's ability to monetize its operations effectively.
Hindustan Copper has outlined an ambitious expansion strategy with total ore production projected to rise from 4.21 million tonnes per annum (MTPA) in 2025-26 to 12.20 MTPA by 2029-30. The company has planned a capital expenditure of ₹7,188.90 crore over the next five years to expand mining operations. The capex plan includes ₹450.51 crore in the current year, followed by ₹1,421.73 crore in 2027, ₹1,993.70 crore in 2028, ₹2,227.18 crore in 2029, and ₹1,095.48 crore in 2030. As per PTI, the state-owned copper miner is a Mini-Ratna Central Public Sector Enterprise under the mines ministry and is the only company in India which is engaged in copper ore mining and holds all the operating mining leases for copper ore in the country. The company operates copper mines in Malanjkhand in Madhya Pradesh, Khetri in Rajasthan and Ghatsila in Jharkhand, with primary smelter and refinery at Ghatsila and secondary facilities in Jhagadia, Gujarat.
The company's Board of Directors considered and approved the unaudited standalone and consolidated financial results at a meeting held on August 10, with the statutory auditors conducting a limited review of the results. However, the auditors noted significant governance concerns, stating that the company has not had the required independent directors since November 3, 2024, and could not validly constitute its Audit Committee. Consequently, the quarterly financial results were approved directly by the Board. Additionally, the company has not had a woman director since March 22, 2025, as required under the Companies Act, though the auditors did not modify their conclusion on the financial results over these matters. These governance non-compliance issues remain a risk factor for investors despite the strong operational performance.
Shares of Hindustan Copper gained momentum following the results announcement, with shares gaining 1.17% in intraday trading following the earnings release. According to The Economic Times, the stock has gained 4% so far this year, reflecting positive investor sentiment toward the company's strong quarterly performance. The market response indicates investor confidence in the company's ability to maintain its growth trajectory despite the governance concerns highlighted by the auditors. However, the ongoing governance non-compliance issues may continue to impact investor sentiment and regulatory scrutiny.
