Detailed Narrative
Record FY25: Production and Cost Excellence
HZL delivered record mined and refined metal production for FY25, with Q4 achieving 310 KT mined metal (highest Q4 since underground transition). Zinc COP fell to 4-year low of $1,052/ton ($994 in Q4), driven by domestic coal at 46%, RE power at 15%, and operational efficiencies. Revenue grew 18% to Rs. 34,083 crores while EBITDA surged 28% to Rs. 17,465 crores at 51% margin (+400 bps). PAT at Rs. 10,353 crores (+33%) was second-highest ever.
2x Growth: Transformative Expansion to 2 Million Tons
Management is aggressively progressing the 2x expansion from 1 MT to 2 MT by FY31. First phase (1.2→1.5 MT) announcement expected within 1 month, covering RA mine expansion, new concentrator, and smelter at Debari. Total CAPEX of Rs. 32,000-35,000 crores over 5 years, funded through mix of internal accruals (Rs. 50,000 crores pre-CAPEX FCF projected) and debt. Peak capacity by FY31 would generate Rs. 60-65K crores revenue and Rs. 34K crores EBITDA.
Silver: Conservative Near-Term, Massive Long-Term Upside
FY26 silver guidance of 700-710 tons reflects full-year zinc-lead mode (vs lead mode in FY24 which produced 744 tons). Management sees 1,200-1,300 tons in the 2x plan as SK mine expands, Zawar's Baroi mine contributes, and Agucha's Galena zone is accessed. Pantnagar refinery already has 800-ton capacity; will need expansion to 1,500 tons. Innovative hot acid leaching technology (alternative to fumers) being implemented at Dariba for additional 27 tons silver and 6 KT lead annually.
Shareholder Returns and Balance Sheet Strength
Distributed Rs. 12,053 crores in dividends during FY25. Generated Rs. 13,784 crores FCF from operations. ROCE at industry-leading 58%. Total shareholder return of 68% (13x Nifty 50). Market cap rose from 62nd to 39th in Nifty ranking. Contributed Rs. 18,730 crores to exchequer including Rs. 4,200 crores royalty to Rajasthan (35% of state's total royalty income). Recently included in F&O segment on NSE.