Udaipur, 18th July 2025: Hindustan Zinc Limited (BSE: 500188 & NSE: HINDZINC), India’s only and the world’s largest integrated zinc producer, reported its results for the first quarter ended 30th June 2025. The company registered its highest ever first quarter mined metal production of 265 KT. The company also registered record quarterly production from Hindustan Zinc Alloys (HZAPL), taking overall share of value-added products to c.24%. The company clocked the lowest ever first quarter zinc cost of production (COP) at US$ 1,010/MT, better 9% YoY. The company delivered a profit, beating estimates to INR 2,234 crores with an industry leading EBITDA margin of c.50%. Hindustan Zinc’s silver segment continued to contribute significantly to profitability with c.41%.
During the quarter, the company secured two critical mineral blocks – Potash & Halite in Rajasthan and Rare Earth Elements (REEs) in Uttar Pradesh. In the same period, the company’s renewable energy consumption increased to c. 19%, on track to progressively achieve 70% by FY28. Along with that, Hindustan Zinc’s Board approved the first phase of plans towards doubling the production capacity with an investment of INR 12,000 crores to set up a new 250 KTPA integrated smelting complex alongside similar expansion of mines & mills capacities. The company also declared an interim dividend of INR 10/share, amounting to INR 4,225 crores. Historically, Hindustan Zinc has maintained investment grade rating ‘AAA’ and recently received ratings reaffirmation at CRISIL AAA/Stable/CRISIL A1+.
Commenting on Hindustan Zinc’s performance, Arun Misra, Chief Executive Officer, 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. In line with the rising zinc demand projected by 2030, the Board has approved the Phase-1 expansion project towards 2x growth, further strengthening our growth pipeline. Coupled with the addition of blocks of critical minerals and rare earth elements, we are strategically poised to transform into a true multi-metal powerhouse, unlocking sustained value for all our stakeholders.”
Sandeep Modi, Chief Financial Officer, said:
“Despite commodity headwinds and a weaker dollar, our focus on sustainable and efficient production enabled us to deliver a consistent EBITDA margin of c.50%. Staying true to our commitment to create long-term value for our shareholders, the Board declared an interim dividend of ₹ 10 per share during the quarter, reinforcing our track record of consistent returns. Amidst continued global uncertainties, our healthy balance sheet, structurally leaner cost base, and robust growth project pipeline position us well to deliver sustainable long-term value.”
Note: Lowest-ever zinc cost of production in 1Q FY26 is since underground transition; HZAPL: Hindustan Zinc Alloy Pvt Ltd
Financial Summary
(In INR Crores or as stated)
|
Particulars |
1Q |
4Q |
|||||||||
|
FY2026 |
FY2025 |
Change |
FY2025 |
Change |
|||||||
|
Sales1 |
|||||||||||
|
Zinc |
4,935 |
5,325 |
-7% |
5,856 |
-16% |
||||||
|
Lead |
872 |
998 |
-13% |
1,027 |
-15% |
||||||
|
Silver |
1,427 |
1,427 |
– |
1,688 |
-15% |
||||||
|
Others |
537 |
380 |
41% |
517 |
4% |
||||||
|
Total |
7,771 |
8,130 |
-4% |
9,087 |
-14% |
||||||
|
EBITDA |
3,860 |
3,946 |
-2% |
4,816 |
-20% |
||||||
|
EBITDA Margin |
50% |
49% |
– |
53% |
– |
||||||
|
Profit After Taxes (after exceptional items) |
2,234 |
2,345 |
-5% |
3,003 |
-26% |
||||||
|
Earnings per Share2 |
5.29 |
5.55 |
-5% |
7.11 |
-26% |
||||||
|
Mined Metal Production (‘000 MT) |
265 |
263 |
1% |
310 |
-15% |
||||||
|
Refined Metal Production (‘000 MT) |
|||||||||||
|
Total Refined Metal (Zinc & Lead) |
250 |
262 |
-5% |
270 |
-7% |
||||||
|
Zinc |
202 |
211 |
-4% |
214 |
-6% |
||||||
|
Lead |
48 |
51 |
-6% |
56 |
-14% |
||||||
|
Silver3 (in MT) |
149 |
167 |
-11% |
177 |
-16% |
||||||
|
Wind Power (in million units) |
134 |
108 |
24% |
63 |
113% |
||||||
|
Refined Metal Sales (‘000 MT) |
|||||||||||
|
Total Refined Metal (Zinc & Lead) |
249 |
262 |
-5% |
274 |
-9% |
||||||
|
Zinc |
201 |
211 |
-5% |
218 |
-8% |
||||||
|
Lead |
48 |
51 |
-6% |
56 |
-14% |
||||||
|
Silver (in MT) |
145 |
167 |
-13% |
177 |
-18% |
||||||
|
Zinc CoP ($/MT) 4 |
1,010 |
1,107 |
-9% |
994 |
2% |
||||||
|
Zinc LME ($/MT) |
2,641 |
2,833 |
-7% |
2,838 |
-7% |
||||||
|
Lead LME ($/MT) |
1,947 |
2,167 |
-10% |
1,970 |
-1% |
||||||
|
Silver LBMA ($/oz.) |
33.7 |
28.8 |
17% |
31.9 |
6% |
||||||
|
USD-INR (average) |
85.57 |
83.42 |
3% |
86.60 |
-1% |
||||||
Note: all numbers reported are consolidated numbers unless otherwise mentioned
Including other operating income
₹, not annualised
Silver occurs in Lead & Zinc ore and is recovered in the smelting and silver-refining processes
Cost of production (CoP) wherever referred is excluding royalty
Financial Performance
Revenue:
Recorded a revenue from operations at ₹ 7,771 crores during the quarter, down 4% YoY on account of lower volumes and lower zinc and lead commodity prices partly offset by higher silver prices, stronger dollar, and higher by-product realisations.
EBITDA:
Recorded a Q1 EBITDA of ₹ 3,860 crores, down 2% YoY driven by lower volumes and lower zinc and lead commodity prices partly offset by higher silver prices, stronger dollar, and lower cost of production. The company recorded an industry leading EBITDA margin of c.50%.
Profit after taxes (PAT):
Profit after tax for the quarter stood at ₹ 2,234 crores, down 5% YoY in line with the lower EBITDA. The effective tax rate for the quarter was c.25%.
Zinc Cost of Production (COP):
Clocked the lowest-ever 1Q zinc COP since underground transitioning, which stood at US$ 1,010 per MT, better 9% YoY driven by improved metal grades, better domestic coal and renewable energy consumption, higher by-product realisations, and softened input commodity prices partly offset by lower volume.
Liquidity and Investment
As on June 30, 2025, the company had healthy gross investments and cash & cash equivalents of ₹ 9,340 crores invested in high quality debt instruments. Total borrowings outstanding as on June 30, 2025, was ₹ 13,524 crores.
Company has consistent Investment grade credit rating of AAA from CRISIL, demonstrating the strength of the balance sheet.
Project Update
160 Ktpa roaster at Debari will be commissioned in mid of 2Q FY26.
Completion of the cellhouse debottlenecking for Dariba Smelting Complex and Chanderiya Lead Zinc Smelter is expected by 2Q FY26.
The 510 Ktpa Fertiliser plant is under progress and is expected to be completed by 1Q FY27.
The innovative hot acid leaching technology for recovery of lead and silver from smelting waste at Dariba is expected to be completed by 4Q FY26.
Board has approved plans for expanding the integrated refined metal capacity by 250 Ktpa along with matching mines & mills capacity with an investment of c.₹ 12,000 crores.
ESG (Environment, Social and Governance)
Unveiled the ambitious 2030 Sustainability Goals covering all key thematic areas of sustainability
Recognized among the top 500 global leaders in sustainability in the 2nd edition of the World’s Most Sustainable Companies 2025 list by Time Magazine
Hindustan Zinc turns 3.32 times water positive
Inaugurated Rajpura Dariba Mine’s first underground occupational health center, equipped with dedicated underground ambulance, rescue-trained personnel and essential medical supplies
Announced an investment of ₹ 5 crore in partnership with the Department of Forest, Udaipur, to rejuvenate the 400-hectare Baghdarrah Crocodile Conservation Reserve
Signed a MoU with EcoPro Earth Pvt Ltd, a company dedicated to transforming industrial waste into reusable cost-effective construction materials like paver blocks, bricks, roadblocks, and tree guards
Committed ₹ 3.1 crore towards water harvesting in Rajasthan, under ‘Vande Ganga’ initiative
Hindustan Zinc’s rescue team won British Safety Council “Team of the Year Award” 2025
Recognized at the India Risk Management Awards organized by CNBC TV-18 for ESG risk management in the large cap category
Won 3 accolades at the PeopleFirst HR Excellence Awards 2025: ‘Champion in Technology Deployment in HR’, ‘Champion in Diversity, Equity & Inclusion (DEI)’, and ‘Winner in the category of Best HR Team’