Hindustan Zinc

Hindustan Zinc reported a strong start to FY27 with record operational and financial performance. The company achieved its highest-ever first quarter mine metal production of 268,000 tons and refined metal production of 260,000 tons, a 4% increase year-on-year. This operational strength, combined with supportive commodity prices, led to a record quarterly revenue of INR13,747 crores, up 77% YoY. EBITDA reached an all-time high of INR8,074 crores, a 109% YoY increase, resulting in an industry-leading EBITDA margin of 59%. Net profit also hit a record INR5,469 crores, up 145% YoY, demonstrating robust profitability and strong free cash flow of INR5,253 crores pre growth capex.

The company achieved its lowest quarterly zinc cost of production (excluding royalty) since underground transition, at USD851 per ton, representing a 16% decline year-on-year. This reduction was primarily driven by better mine grades, higher metal production, increased renewable power consumption, and improved by-product realization. Silver continued to be a key earnings driver, contributing approximately 46% to overall profitability. The strategic sale of 10,000 tons of lead concentrate, taking advantage of high LME prices, also contributed to financial performance, realizing silver equivalent of 9 tons and 6 KT of metal.

Hindustan Zinc made significant strides in sustainability, increasing renewable energy consumption to 22%. The company deployed India's first 250 metric ton electric crane and strengthened its partnership with The Energy & Resources Institute through a 250-hectare natural forest development project. Following Chanderiya Lead Zinc Smelter, Rampura Agucha Mine became the first mine in India to receive the Zinc Mark certification. These efforts led to Hindustan Zinc's inclusion in the Dow Jones Best-in-Class Emerging Markets Index for the first time, recognizing its commitment to sustainable value creation and ESG excellence.

A significant milestone in diversification was achieved with the securing of a mining lease for a rare earth elements and Yttrium block in Gundlupet, Karnataka. This move reinforces the company's ambition to become a diversified multimetal enterprise and supports India's critical mineral mission. The company expects exploration for this block to take 2-3 years, followed by mine planning, with production anticipated by 2031-32.

Progress on key growth projects remains steady. Mine development activities have commenced for the 250 KTPA integrated zinc smelter at Debari. Construction has started for the tailings reprocessing plant, which is expected to be completed in 24 months and produce 30-35 kt of zinc. The hot acid leaching plant at Dariba and the fertilizer plant at Chanderiya are on track for completion by Q2 FY27, with the phosphoric acid portion of the fertilizer plant expected to be commissioned in Q2 FY27. The full fertilizer plant is targeted for Q1 FY28.

The company maintains a strong net cash position of INR5,572 crores, providing financial flexibility for growth opportunities. Capital allocation priorities remain focused on high-return growth projects, balance sheet strength, and returning surplus cash to shareholders. An interim dividend of INR11 per share was paid during the quarter, aligning with the policy of distributing a minimum of 30% of profit and 5% of reserves. The company contributed approximately INR6,450 crores to the National Exchequer through taxes, royalties, duties, and other statutory earnings.

The Board of Directors appointed Mr. Amarendu Prakash as the CEO and Whole-Time Director of Hindustan Zinc, effective August 1, 2026. Mr. Prakash, a steel industry veteran with over 30 years of experience, previously served as Chairman and Managing Director of SAIL. Mr. Arun Misra, the outgoing CEO, expressed gratitude for his tenure and confidence in Mr. Prakash's leadership to guide the company to greater heights.