Margins are expected to slightly moderate in FY2026, amid flat metal prices. Nonetheless, the coverage metrics are estimated to remain stable.

• Earnings of domestic primary non-ferrous entities are expected to demonstrate resilience through FY2026, despite slight headwinds to operating margins owing to persistently muted metal prices. Although realisations are flat, input costs have largely been contained, thereby limiting the adverse impact on overall profitability. Furthermore, robust domestic demand – estimated to grow at a healthy 7.0-9.5% – is likely to provide support, far outpacing the global demand growth and reinforcing overall sector stability.
• Non-ferrous metal prices contracted by about 4-7% in Q1 FY2026, but rebounded modestly in Q2, leading to a broadly flat trend in H1 FY2026, owing to persistent global demand weakness. Looking ahead, metal prices are likely to remain flat in FY2026 following strong gains in FY2025.