Q1 sees record mined metal, lowest zinc cost at $1,010/MT, and ₹4,225 Cr dividend declared
Hindustan Zinc Limited (BSE: 500188, NSE: HINDZINC) reported a profit of ₹2,234 crore for the first quarter of FY26, surpassing analyst estimates. The company achieved its highest-ever Q1 mined metal production at 265 KT and recorded the lowest first-quarter zinc cost of production at US$ 1,010 per MT. The Board also approved an interim dividend of ₹10 per share, amounting to ₹4,225 crore, reinforcing Hindustan Zinc’s track record of delivering value.
Revenue from operations stood at ₹7,771 crore, down 4% year-on-year, impacted by softer zinc and lead prices and lower volumes. However, gains from higher silver prices, improved by-product realizations, and a stronger US dollar helped cushion the topline. EBITDA for the quarter was ₹3,860 crore, reflecting a decline of 2% YoY, while maintaining an industry-leading EBITDA margin of approximately 50%.
Profit after tax came in at ₹2,234 crore, down 5% from the previous year, with earnings per share of ₹5.29 and an effective tax rate of approximately 25%.
Silver remained a significant contributor to the company’s profitability, accounting for 41% of total EBITDA. Silver sales stood at 1,427 MT during the quarter, supported by a 17% year-on-year surge in global silver prices to US$ 33.7/oz.
Operationally, the company reported its highest-ever first-quarter mined metal production at 265 KT, up 1% YoY. Refined metal production was 250 KT, down 5% YoY, comprising 202 KT of zinc and 48 KT of lead. Sales of refined metal totaled 249 KT. Hindustan Zinc Alloys (HZAPL) reported its highest-ever quarterly production, pushing value-added product share to approximately 24%.
The zinc cost of production improved by 9% YoY to US$ 1,010 per MT, supported by higher metal grades, greater reliance on domestic coal and renewable energy, and enhanced by-product recovery.
The company’s balance sheet remained strong with cash and equivalents of ₹9,340 crore as of 30 June 2025. Total borrowings stood at ₹13,524 crore. Hindustan Zinc retains its AAA/Stable credit rating from CRISIL.
Hindustan Zinc also secured critical mineral assets during the quarter, winning Potash and Halite blocks in Rajasthan and Rare Earth Element (REE) rights in Uttar Pradesh. Sustainability advances included achieving 3.32 times water positivity, increasing renewable energy usage to 19%, and initiating a ₹5 crore conservation project for the 400-hectare Baghdarrah Crocodile Reserve in partnership with the Department of Forest, Udaipur.
Capital expenditure and strategic projects are on track, including:
- Commissioning of the 160 KTPA roaster at Debari by mid-Q2 FY26
- Completion of cellhouse debottlenecking at Dariba and Chanderiya by Q2 FY26
- 510 KTPA fertilizer plant expected by Q1 FY27
- Hot acid leaching technology for smelting waste recovery by Q4 FY26
- Board-approved ₹12,000 crore expansion for a 250 KTPA smelting complex
CEO Arun Misra stated, “Delivering our highest-ever Q1 mined metal production at the lowest-ever zinc cost reflects our relentless focus on operational efficiency. With strategic investments and secured mineral blocks, Hindustan Zinc is poised to become a multi-metal powerhouse.”
CFO Sandeep Modi added, “Despite commodity headwinds, our structurally lean cost base and consistent performance enable us to deliver robust returns. The interim dividend and capital plan signal our commitment to long-term value creation.”
The company also received several recognitions during the quarter:
- Featured in Time Magazine’s World’s Most Sustainable Companies 2025 list
- British Safety Council’s “Team of the Year Award”
- ESG Risk Management Award at CNBC TV-18’s India Risk Management Awards
- Three accolades at PeopleFirst HR Excellence Awards 2025
