Detailed Narrative
Record Quarter — All Metrics at All-Time Highs
Q3 FY26 was a landmark quarter with records across revenue (Rs 10,980 crores), EBITDA (Rs 6,087 crores), and PAT (Rs 3,916 crores). Driven by best-ever Q3 mined metal (276 KT) and refined metal (270 KT) production, 5-year lowest zinc COP of $940/ton, and buoyant commodity prices (zinc $3,350/ton, silver $93/oz). EBITDA margin at 55%. Free cash flow of Rs 3,413 crores in Q3 swung balance sheet to net cash (Rs 329 crores). Precious metals now contribute 44% of profits.
Cost Leadership and RE Transition
Zinc COP ex-royalty at $940/ton in Q3, well below $950-1,000 sustained guidance. Achieved through 58% domestic coal utilization (up), lower imported coal prices, and 20% RE power share. Additional 21 KT debottlenecking completed at Chanderiya and Dariba smelters. RE power targeting 25% exit FY26, 35-40% in FY27, and 70% in FY28 — expected to save Rs 250-300 crores annually at full ramp. Battery storage and wind capacity being commissioned.
2x Growth Strategy
Two major expansion projects underway: (1) 250 KT zinc smelter at Debari — EPC partners locked, completion Q2 FY29; (2) Tailings reprocessing at Rampura Agucha — completion Q4 FY28. Growth capex of $300M for FY26 ($180M spent in 9M). Volume doubling would take silver from ~700 to 1,300-1,400 tons annually. Lead capacity from 200 KT to 400 KT. Pantnagar silver refinery already has 800 tons capacity; additional 600-700 tons needed. Maintenance capex ~$400M/year.