Indian metal companies are poised for strong domestic expansion in FY26, showing resilience in the face of external trade headwinds such as US-imposed tariffs. Firms like Vedanta, JSW Steel, Hindustan Zinc, and NALCO are doubling down on India’s infrastructure boom and rising domestic demand to drive their growth strategies.
Domestic Demand Shields Against Global Volatility
Despite the imposition of certain tariffs by the United States on metals, Indian firms remain relatively insulated due to their local focus and the Indian government’s massive infrastructure push. Experts expect steel demand in India to grow by 10% annually, while aluminium demand is set to rise at a compound annual growth rate (CAGR) of 7.2% until 2030.
“India’s aluminium demand is forecast to double every five years,” said an analyst, citing the government’s Rs 11.21 lakh crore allocation for infrastructure in the 2025–26 Union Budget. This domestic momentum is expected to offset any negative fallout from foreign tariffs, particularly as global manufacturers explore diversification into India.
Focus on India Pays Off
According to market experts, companies like Vedanta, Hindustan Zinc, and NALCO, which have a strong domestic footprint, are expected to outperform due to their insulation from global uncertainties.
“The sharp fall in metal stocks across the board was a knee-jerk reaction. Going forward, the market will favour companies that derive the bulk of their revenues from domestic operations,” said an analyst at a leading domestic brokerage.
FY26 Expansion in Full Swing
Vedanta Limited is aggressively expanding its aluminium business, aiming to increase production capacity to 3 million tonnes. The company has also secured one of Odisha’s largest high-grade bauxite mines and is advancing the commissioning of its BALCO smelter expansion by FY26. It also aims to push value-added aluminium products from 60% to over 90%, aligning with demand from construction and electric vehicles.
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Hindustan Zinc, a Vedanta subsidiary, recently inaugurated a 30,000 TPA zinc alloy plant in Rajasthan and has plans to double metal production to 2 million TPA in the next five years. Chairperson Priya Agarwal Hebbar reaffirmed this vision, citing growing domestic demand for zinc alloys.
Aluminium major Hindalco has outlined key projects in copper, e-waste recycling, and copper rod production, all expected to be commissioned within this fiscal year.
Meanwhile, JSW Steel is set to invest Rs 45,000 crore in steel and energy, and Tata Steel is expanding operations across its three major plants—Neelachal Ispat Nigam, Kalinganagar, and Bhushan.
With domestic consumption rising and infrastructure investment surging, Indian metal firms are positioning themselves to lead the next growth wave, despite global turbulence.
