Hindustan Zinc Reports Robust Q1 FY26 Performance with Record Mined Metal Output, Strong Profitability and Strategic Expansions

Mumbai, July 18, 2025 — Hindustan Zinc Limited (HZL), a Vedanta Group company and the world’s largest integrated zinc producer, announced its financial results for the first quarter of FY26, reporting record mined metal production of 265 Kt, the lowest-ever Q1 zinc cost of production, and profit after tax (PAT) of ₹2,234 crore, reflecting the company’s strong operational focus and strategic direction amid global market volatility.

Strong Operational Metrics

1. Record Mined Metal Production:
HZL achieved its highest-ever first-quarter mined metal production of 265 Kt, up 1% year-on-year, reinforcing its operational efficiency and consistent mining output.

2. Zinc Cost Efficiency:
The company achieved its lowest-ever Q1 zinc cost of production at $1,010 per tonne, a 9% improvement YoY. This was made possible by improved metal grades, better domestic coal and renewable energy use, and stronger by-product realisations, despite marginally lower volumes.

3. Refined Metal Output and Sales:
Total refined metal production (zinc and lead combined) was 250 Kt, down 5% YoY due to planned maintenance shutdowns. Zinc production was 202 Kt, while lead output was 48 Kt.
Refined metal sales were 249 Kt, with 201 Kt of zinc and 48 Kt of lead. Silver sales stood at 145 MT, down 13% YoY.

Financial Performance Highlights

1. Revenue and Profitability:

• Revenue from operations stood at ₹7,771 crore, a 4% YoY decline, mainly due to lower volumes and weaker zinc and lead prices, partially offset by higher silver prices and by-product income.

• EBITDA came in at ₹3,860 crore, down 2% YoY, but with an industry-leading EBITDA margin of ~50%.

• Profit after Tax (PAT) was ₹2,234 crore, 5% lower YoY, in line with EBITDA decline. The effective tax rate stood at around 25%.

• Earnings per share (EPS) came in at ₹5.29.

2. Cash Position and Investments:
As of June 30, 2025, the company held gross investments and cash equivalents of ₹9,340 crore, with total borrowings of ₹13,524 crore. HZL retained its AAA credit rating from CRISIL, showcasing its financial prudence and strong balance sheet.

Shareholder Rewards

Despite macroeconomic headwinds and commodity price pressure, the company has continued to reward shareholders, declaring a first interim dividend of ₹10 per share, amounting to a payout of ₹4,225 crore for the quarter.

Strategic Expansion Projects and Growth Outlook

Hindustan Zinc is pushing ahead with its ambitious 2x growth strategy. Key highlights include:

• Phase-1 Integrated Metal Expansion:
  The Board has approved a major investment of ₹12,000 crore to expand refined metal capacity by 250 Ktpa, alongside corresponding increases in mining and milling capacities.

• Key Ongoing Projects:

  • 160 Ktpa roaster at Debari to be commissioned in mid-Q2 FY26

  • Cellhouse debottlenecking at Dariba and Chanderiya smelters by Q2 FY26

  • 510 Ktpa Fertiliser Plant targeted for completion by Q1 FY27

  • Hot Acid Leaching Technology Project to recover silver and lead from waste, to be completed by Q4 FY26

• Mineral Block Wins:
  The company recently won critical mineral blocks including potash in Rajasthan and rare earth elements in Uttar Pradesh, which are key to supporting India's strategic mineral independence and Hindustan Zinc’s own multi-metal diversification.

Digital Innovation: Zinc Freight Bazaar

HZL launched the Zinc Freight Bazaar, a digital logistics platform designed to offer real-time, transparent, and agile delivery management for its customers. The platform marks a significant digital step in modernizing zinc procurement logistics.

ESG Leadership and Social Commitments

As a leader in sustainability and responsible mining, Hindustan Zinc has made significant strides on the ESG front:

• 2030 Sustainability Goals: Launched with clear, measurable targets across environment, social, and governance themes

• Water Positive by 3.32 times: Demonstrating effective water conservation and reuse

• Recognized by Time Magazine as one of the top 500 global sustainability leaders

• Inauguration of India’s First Underground Occupational Health Center at Rajpura Dariba Mine

• ₹5 crore partnership with Udaipur Forest Dept. to rejuvenate Baghdarrah Crocodile Conservation Reserve

• Tie-up with EcoPro Earth Pvt Ltd for converting industrial waste into reusable construction materials

• ₹3.1 crore committed under 'Vande Ganga' for water harvesting in Rajasthan

• Awards & Recognition:

  • British Safety Council’s “Team of the Year” Award

  • India Risk Management Award by CNBC-TV18 for ESG Excellence

  • Three PeopleFirst HR Excellence Awards in HR Tech, DEI, and Best HR Team categories

Silver: A Key Revenue Contributor

Silver continues to be a crucial revenue stream, contributing 41% of the profitability this quarter. With silver prices rising 17% YoY to $33.7/oz., HZL maximized returns through efficient silver recovery from its lead-zinc ores.

Macro Environment and Metal Market Trends

While the London Metal Exchange (LME) zinc prices fell 7% YoY to $2,641/MT and lead prices declined 10% to $1,947/MT, silver prices strengthened considerably. The weaker USD and stronger INR (₹85.57 vs USD on average) also impacted overall realisations.

Leadership Commentary

Arun Misra, CEO, said:
“Delivering our highest-ever first quarter mined metal production at the lowest-ever zinc cost of production reflects our relentless focus on operational efficiencies and cost leadership. With rising zinc demand projected by 2030, the Board-approved Phase-1 expansion reinforces our ambition of doubling our output and becoming a global multi-metal leader.”

Sandeep Modi, CFO, added:
“Despite global uncertainties and a weaker dollar, our structurally leaner cost base and strong silver performance ensured consistent EBITDA margins. With robust financials and a healthy balance sheet, we are poised to continue delivering long-term shareholder value.”

Investor Call Details

Hindustan Zinc will host its earnings conference call on Friday, July 18, 2025 at 16:00 IST. Investors and analysts can join via internet registration or by dialling:

• Universal Access: +91 22 6280 1340 / +91 22 7115 8241

• Playback: +91 22 7194 5757, Code: 06061# (available till July 25)

About Hindustan Zinc

Hindustan Zinc (BSE: 500188, NSE: HINDZINC) is the world’s largest integrated zinc producer, and among the top 5 silver producers globally. The company has a 77% share in India’s primary zinc market, and is a pioneer in green zinc production through its EcoZen brand. Recognized for its operational excellence, ESG leadership, and CSR initiatives, Hindustan Zinc is committed to net-zero emissions by 2050 and empowering over 2.3 million lives through its social initiatives.

Conclusion:
Hindustan Zinc’s Q1 FY26 performance highlights its resilience, cost leadership, and sustainable growth mindset. With new mineral assets, digital transformation, ESG goals, and expansion plans, the company is strategically positioned to meet the rising global demand for energy transition metals and deliver consistent value to its shareholders and stakeholders alike.

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