The metals sector in Q2 FY26 is experiencing divergent trends. Steel companies face profitability pressures due to declining prices, extended monsoon, and reduced construction activity, with most anticipating EBITDA declines. Tata Steel may outperform due to strong Indian volumes and improved European operations. Non-ferrous metals show promise with LME price increases for aluminium and zinc (both up 6%), supported by rupee depreciation. Vedanta and Hindustan Zinc are well-positioned, while Hindalco expects mixed results across its operations.
