Indian Metals Sector Sees Improved Outlook on Non-Ferrous Earnings

The outlook for India's metals and mining sector has improved, according to Systematix brokerage firm. Non-ferrous companies are expected to remain key earnings drivers, while capacity expansion, volume recovery, and improving realisations will support select primary steel producers.

Systematix expects companies with strong expansion pipelines, cost optimisation, and operating leverage to outperform. However, raw-material costs, commodity prices, and geopolitical disruptions remain key risks.

The first quarter of FY27 saw divergent trends across Systematix's metals and mining coverage. Non-ferrous companies led earnings growth, benefiting from favourable commodity prices, lower costs, stronger copper earnings, and improved alumina realisations.