Detailed Narrative
Record Financial Performance in Q4 and Full Year FY26
Hindustan Zinc delivered an all-time high financial performance in Q4 FY26, with Revenue reaching ₹13,544 crores (up 49.0% YoY and 23.0% QoQ), EBITDA at ₹7,747 crores (up 61.0% YoY and 27.0% QoQ) with a 57.0% margin, and Net Profit of ₹5,033 crores (up 68.0% YoY and 29.0% QoQ). For the full year FY26, the company achieved record Revenue of ₹40,844 crores, EBITDA of ₹22,162 crores, and Net Profit of ₹13,832 crores, marking significant milestones.
Cost Leadership and Operational Efficiency
The Zinc Cost of Production (excl. royalty) for Q4 FY26 was $903/ton, representing a 9.0% YoY and 4.0% QoQ decline, making it the lowest since the underground transition. This was attributed to higher domestic coal usage (64.0%), softened imported coal prices, increased production volumes, strong by-product realization, and better mine grades. The full year FY26 CoP stood at $959/ton, a five-year low and below the guidance of $1,000/ton, underscoring the structural strength of the cost base.
Production Milestones and Volume Growth
The company achieved a new milestone in FY26 by crossing 1.1 million tons of mined metal production and sustained over 1 million tons of refined metal production for the fourth consecutive year. Q4 FY26 saw record-breaking mined metal production of 315 KT and refined metal production of 282 KT. For FY27, Hindustan Zinc has guided for mined metal production of 1,150 KTPA (+/- 10 KT) and refined metal production of 1,100 KTPA (+/- 10 KT).
Smelter Expansion and Capacity Growth
Hindustan Zinc is progressing with its 250,000 tpa integrated zinc smelter at Debari, with site mobilization complete and detailed engineering finalized. The company has revised its long-term smelter expansion strategy, opting to consolidate multiple planned smelters into a single 1 million ton facility at one location, where the 250 KTPA smelter is being built. The design for this 1 million ton smelter is finalized, with order placement expected within approximately one month and mill portion orders by June.
Growth Projects and Diversification
Beyond smelter expansion, the company is accelerating exploration for its 2x growth plans with partners at Zawar and Rajpura Dariba. Technology-led initiatives include the Hot Acid Leaching process, expected to commission in 2Q FY27, and a fertilizer project on track for commissioning in early 2Q FY27. The company has also secured three critical mineral blocks for potash, tungsten, and rare earths, supporting its journey to become a multi-metal enterprise.
Strong Cash Position and Capital Allocation
As of March 31, 2026, Hindustan Zinc moved to a net cash position of ₹5,594 crores, a significant improvement from a net debt of ₹1,169 crores in the previous year, with gross cash at approximately ₹14,000 crores. The company declared an interim dividend of ₹11 per share for FY27, maintaining its policy of a minimum 30% PAT payout. Planned capital expenditure for FY27 is set at $500 million to $600 million for announced growth projects, with management committed to balancing dividend payouts and investment for expansion.
Sustainability and ESG Leadership
Hindustan Zinc was featured in the top 1% of the S&P Global Sustainability Yearbook for the ninth consecutive year. Progress towards 2030 goals includes 18.0% renewable energy consumption in FY26, with a target to increase this to 30-35% in FY27 and 70% by FY28. The Chanderiya Lead Zinc Smelter became India's first site to receive Zinc Mark and Copper Mark certification, reflecting strong environmental commitment.