Best Mining Stocks in India 2026

The mining sector is one of the pivotal pillars of India’s economy, supporting industrial growth, infrastructure development, and the gradual transition to green energy.

Mining and quarrying contribute around 2.5% of India’s GDP and ensure a steady supply of raw materials to core industries such as iron and steel, cement, power, utilities, and infrastructure.

India aspires to become the world’s third-largest economy, reaching nearly $5 trillion by FY27–28. At present, it is the fourth-largest economy at around $4.2 trillion in nominal GDP, having overtaken Japan.

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Looking further ahead, India aims to become a fully developed ~$30 trillion economy by 2047 under the “Viksit Bharat” vision.

Despite being one of the fastest-growing G20 economies, India’s GDP per capita remains among the lowest due to its massive population of nearly 1.5 billion. This makes large-scale infrastructure investment essential to meet rising needs in logistics, transport, housing, utilities, and ease of doing business.

India is expected to spend approximately ₹15–25 trillion annually on infrastructure creation over the next five years.

Against this backdrop, India’s mining and quarrying sector continues to remain a strategic bright spot, especially amid rising geopolitical fragmentation globally. The government has introduced major policy reforms such as the Mines and Minerals Development and Regulation Amendment Act, 2025 (MMDRA), and the National Critical Mineral Mission (NCMM).

Although India produces a wide range of minerals, it remains highly import-dependent for rare earth materials, particularly from China. Through MMDRA and NCMM, the government aims to boost domestic production, fund nearly 1,200 projects by FY30–31, and pursue overseas acquisitions, processing, refining, and recycling to reduce strategic vulnerabilities.

The following companies stand out based on market leadership, production growth, financial strength, and alignment with long-term sector trends.

1) Coal India Ltd (CIL)

• World’s largest coal producer with over 80% domestic market share
• Key supplier to India’s thermal power sector
• Consistent profitability, high dividend yield, zero debt, and near-monopoly position
• Operates 318 mines across eight states; headquartered in Kolkata
• Targets 1 billion tonnes production by FY26
• CAPEX of ~₹27,750 crore to boost evacuation capacity to 988.5 MTPA by 2030
• Net-zero roadmap with 3 GW solar capacity by FY26 and 5 GW renewables overall

2) NMDC Ltd

• India’s largest iron ore producer and a Navratna PSU
• Current capacity ~45 MTPA; targeting ~100 MTPA by 2030
• Among the world’s lowest-cost iron ore producers
• Operates mechanised mines in Chhattisgarh and Karnataka
• Produces high-grade iron ore (64% Fe), pellets, and diamonds (Panna mine)
• Expansion through organic growth and overseas JVs (Australia, Mozambique)
• Focus on slurry pipelines, rail upgrades, coal blocks, and R&D (21 patents)

3) Hindustan Zinc Ltd (HZL)

• Vedanta Group company incorporated in 1966
• World’s 2nd largest integrated zinc producer and 3rd largest silver producer
• ~75% share of India’s primary zinc market
• Operations across Rajasthan and Uttarakhand
• Global lowest zinc cost of production
• Strong ROE and operational efficiency
• Expansion plans include new furnace plants, roaster, and fertiliser unit
• Government plans to divest its ~29.5% stake

4) Vedanta Ltd (VEDL)

• Diversified natural resources company with presence in zinc, aluminium, copper, iron ore, oil & gas, and power
• India contributes ~65% of revenues
• Holds 65% stake in Hindustan Zinc
• India’s largest aluminium producer with 2.4 MTPA smelting capacity
• Ongoing expansions in alumina, smelters, zinc roasters, and power assets
• Proposed demerger into six listed entities to unlock value
• Exposure to high debt and regulatory risks remains a concern

5) Hindalco Industries Ltd

• Flagship metal company of the Aditya Birla Group, incorporated in 1958
• Global leader in aluminium and copper
• Revenue mix: Novelis (59%), Copper (23%), Aluminium (18%)
• Fully integrated operations from mining to downstream products
• Major expansion projects in the US, Odisha, and copper recycling
• Secured Meenakshi coal mine in 2024
• Targeting 300 MW renewable energy capacity by FY25

6) Gujarat Mineral Development Corporation (GMDC)

• Gujarat government PSU with mining (~90%) and power (~10%) operations
• Leading producer of lignite, bauxite, fluorspar, and manganese
• Venturing into Odisha coal blocks with 468 MT reserves
• Exploring opportunities in critical minerals
• Benefiting from regional industrial demand and mine expansions

7) Hindustan Copper Ltd (HCL)

• India’s only vertically integrated copper producer
• Operates across mining, beneficiation, smelting, refining, and extrusions
• Owns all operating copper ore leases valid till at least 2040
• Access to ~45% of India’s copper reserves (~755 MT)
• Well-positioned to benefit from EV, electronics, and power infrastructure demand

8) MOIL Ltd

• Miniratna PSU under the Ministry of Steel
• India’s largest manganese ore producer with ~53% market share
• Sole domestic producer of Electrolytic Manganese Dioxide (EMD)
• Operates 10 mines in Maharashtra and Madhya Pradesh
• Targeting 3.5 MTPA production by 2030
• Planned capex of ~₹2,400 crore

Conclusion: Mining Sector Positioning for Sustained Growth

As 2026 approaches, India’s mining sector is positioned for strong long-term expansion driven by rising domestic demand, infrastructure spending, and policy momentum.

Established leaders such as Coal India and NMDC offer stability and reliability, while players in zinc, copper, and aluminium provide opportunities for cyclical upside.

Looking ahead, rare earth elements and critical minerals will remain the key focus areas, making the mining sector an integral part of India’s long-term growth and strategic self-reliance.