8 Metal and Mining Stocks That Mirae Asset Sharekhan Is Bullish On Amid Robust Demand

Synopsis: India’s metals and mining sector showed improving business conditions during the quarter, supported by stronger demand, better pricing and policy support, creating a positive base for growth and earnings recovery ahead. 

India’s metals and mining sector is entering FY27 with improving fundamentals after a strong recovery in Q4FY26. Domestic steel prices have rebounded nearly 30 percent  from December 2025 lows, while India’s steel consumption grew 8 percent  YoY to 164 million tonnes and crude steel production rose 10.7 percent  YoY to 168.4 million tonnes in FY26. 

The sector is also witnessing sustained investments, with listed companies spending around Rs. 10.5 trillion in capex during FY26, up 15 percent  YoY. Supported by infrastructure-led demand, a 12 percent  safeguard duty on steel imports, rising non-ferrous metal prices and favourable government policies, the industry is expected to see a broad-based earnings recovery in FY27 despite some pressure from higher raw material costs.

Strong Quarter Backed by Demand Recovery

The sector delivered a healthy Q4FY26 performance as domestic demand remained strong and pricing improved across key metal categories. Steel prices recovered nearly 30 percent  from their December 2025 lows, helping improve realizations and profitability. The recovery was supported by infrastructure spending, policy measures and better market conditions. Covered companies reported combined revenue of Rs. 1.91 lakh crore, up 15 percent  YoY, while combined adjusted profit rose 56 percent  YoY to Rs. 44,077 crore.

Steel Sector Benefits from Price Recovery

India’s steel industry continued to expand during FY26. Domestic steel consumption reached 164 million tonnes, growing 8 percent  YoY, while crude steel production increased 10.7 percent  YoY to 168.4 million tonnes. Domestic HRC prices, which had fallen to Rs. 46,500 per tonne in December 2025, recovered to Rs. 54,500 per tonne by February 2026 and later reached around Rs. 57,500 per tonne. The 12 percent  safeguard duty on flat steel imports helped domestic producers improve pricing and EBITDA performance. Rebar prices also increased 10-15 percent  since January 2026 due to supply shortages and healthy construction demand.

Mining Sector Shows Healthy Growth

Mining activity remained strong during the year. The estimated value of mineral production for H1FY26 stood at Rs. 92,846 crore, representing growth of around 16 percent  YoY. Industry confidence was reflected in investment activity, with major listed metals and mining companies reporting aggregate capital expenditure of approximately Rs. 10.5 trillion in FY26, up nearly 15 percent  YoY. Government initiatives focused on critical minerals, specialty steel and supply security further supported the sector.

Non-Ferrous Metals Remain Supportive

Non-ferrous companies continued to benefit from favorable global market conditions. Average LME aluminium prices rose 22 percent  YoY and 13 percent  QoQ to $3,193 per tonne during Q4FY26, while spot prices touched a four-year high of $3,540 per tonne in April 2026. Supply constraints across several regions and China’s 45 MTPA smelter capacity cap supported prices. Copper prices remained firm at around $9,000-9,500 per tonne, supported by growing demand from energy transition and electrification projects.

Challenges Remain

Despite the improving outlook, some risks remain. Coking coal prices increased to around $225 per tonne, up roughly 11 percent  YoY and QoQ, which could pressure margins for integrated steel producers. The coking coal segment remained the weakest area within the sector due to import dependence, operational challenges and stressed domestic production conditions.

Outlook for FY27

The report expects FY27 to be a year of earnings recovery for the metals and mining sector. Stable demand, improved pricing, infrastructure-led growth and continued policy support are expected to drive profitability. While input cost inflation may create short-term volatility, the sector is entering FY27 with stronger fundamentals, improving earnings visibility and a constructive growth outlook.

Brokerage View:

Mirae Asset Sharekhan maintains a positive view on the metals and mining sector, expecting a cyclical earnings recovery in FY27 driven by stable demand, improving steel and aluminium prices, infrastructure-led spending and supportive government policies. The brokerage believes the 12% safeguard duty on steel imports will continue to support domestic producers, although higher coking coal and iron ore costs may create near-term margin volatility. Its preferred picks are Gravita India, Welspun Corp, JSW Steel, NMDC and Coal India.

CompanyTarget PriceCurrent PriceUpside JSW Steel1500129416% NMDC10588.519% SAIL22018221% Coal India53045217% Gravita India2100172422% Ratnmani Metals2900261711% Moil36029622% Welspun Corp150014027%

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