KIOCL zooms 47% in 3 days on heavy volumes; what's driving this PSU stock?

Shares of KIOCL hit a new high of ₹628.85, soaring 19 per cent on the BSE in Monday's intra-day trade amid heavy volumes.

KIOCL share price today

 

Shares of KIOCL hit a new high at ₹628.85, soaring 19 per cent on the BSE in Monday’s intra-day trade amid heavy volumes. 

 

In the past three trading days, the stock price of the sponge iron company has zoomed 47 per cent from a level of ₹426.45 on September 30, 2025. It has skyrocketed 233 per cent from its 52-week low of ₹188.15 touched on April 7, 2025.

 

At 12:03 PM; KIOCL was trading 17 per cent higher at ₹617.35, as compared to 0.44 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped over 10-fold with a  combined 22.43 million equity shares representing 3.69 per cent of total equity of KIOCL changing hands on the NSE and BSE.  Meanwhile, today the stock exchange BSE has sought clarification from KIOCL Ltd, with reference to movement in volume. The reply is awaited.

 

 

What's driving the stock price of KIOCL?

 

KIOCL is a Schedule “A” Miniratna Government of India (Goi) Enterprise, having its Head Office in Bangalore; it has Pelletisation and Pig Iron plant units in Mangalore. The Goi, through the President of India held 99.03 per cent stake in KIOCL. The remaining 0.97 per cent is held by the public shareholders.  The company was established as a 100 per cent Export Oriented Unit and is primarily engaged in the business of Iron Ore Mining, Beneficiation and Production of high-quality Pellets. The company has diversified into Operation and Maintenance Services, Mineral exploration and providing pellet manufacturing services pertaining to its various core areas of expertise.

 

Iron ore is an essential component of the global iron and steel industries. Almost 98 per cent of mined iron ore is used in steel making. About 50 countries mine iron ore, with Australia and Brazil dominating the market share for export.

 

In 2025, global steel demand is expected to inch up by 0.5-1.5 per cent on the back of easing financing conditions and pent-up demand from some key steel consuming economies, which will support manufacturing activities. An anticipated recovery in residential construction in economies such as the EU, US and Korea in line with easing of financing conditions will support growth, too. India will continue to lead the pack in terms of demand (source: CRISIL, Platts).

 

Meanwhile, steel production in India increased by 6 per cent in 2024, to about 149.60 million tons. By 2030, it is planned to increase the steelmaking potential to 330 million tons per year in accordance with the state program National Steel Policy 2017.

 

India's steel demand is projected to grow by 8-9 per cent in 2025, significantly outpacing the growth rates of other countries. This optimistic outlook reflects a strong trajectory for the Indian steel industry, driven by multiple demand-side factors. With markets in most regions of the world closed, India is becoming the most attractive market for steel products. Its import is growing amid an increase in local production and the commissioning of new steelmaking capacities. At the same time, prices for finished rolled products have positive dynamics, KIOCL said in its FY25 annual report.

 

Meanwhile, KIOCL said its role as a Notified Exploration Agency (NEA) has expanded, with growing national recognition. The company successfully executed mineral exploration assignments across multiple states, including projects focused on critical and strategic minerals like copper, gold, graphite, and rare earth elements. These efforts align with the Government of India’s vision to secure indigenous mineral security in support of clean energy and technology manufacturing.

 

KIOCL has executed 36 exploration assignments which includes critical minerals such as copper, gold, graphite, and rare earths.

 

With the aim of providing the support to Ministry of Mines, GoI, in augmenting Critical Minerals, KIOCL is currently handling Three (3) G4/ G3 level Mineral Exploration Works of Copper, Gold, Graphite and Rare Earth Elements (REE) in the state of Karnataka and Tamil Nadu (Nagawanda Copper Block, Arasanur Graphite Block and Samalpatti REE Block).