Hindustan Zinc beats consensus, backed by all-time high silver prices and lowest cost of production

Udaipur, 18th July 2025: Hindustan Zinc Limited (BSE: 500188 & NSE: HINDZINC), India's only and the world's largest integrated zinc producer, reported its results for the first quarter ended 30th June 2025. The company registered its highest ever first quarter mined metal production of 265 KT. The company also registered record quarterly production from Hindustan Zinc Alloys (HZAPL), taking overall share of value-added products to c.24%. The company clocked the lowest ever first quarter zinc cost of production (COP) at US$ 1,010/MT, better 9% YoY. The company delivered a profit, beating estimates to INR 2,234 crores with an industry leading EBITDA margin of c.50%. Hindustan Zinc's silver segment continued to contribute significantly to profitability with c.41%.

During the quarter, the company secured two critical mineral blocks – Potash & Halite in Rajasthan and Rare Earth Elements (REEs) in Uttar Pradesh. In the same period, the company's renewable energy consumption increased to c. 19%, on track to progressively achieve 70% by FY28. Along with that, Hindustan Zinc's Board approved the first phase of plans towards doubling the production capacity with an investment of INR 12,000 crores to set up a new 250 KTPA integrated smelting complex alongside similar expansion of mines & mills capacities. The company also declared an interim dividend of INR 10/share, amounting to INR 4,225 crores. Historically, Hindustan Zinc has maintained investment grade rating 'AAA' and recently received ratings reaffirmation at CRISIL AAA/Stable/CRISIL A1+.

Commenting on Hindustan Zinc's performance, Arun Misra, Chief Executive Officer, said: "Delivering our highest-ever first quarter mined metal production at the lowest-ever zinc cost of production reflects our relentless focus on operational efficiencies and cost leadership. In line with the rising zinc demand projected by 2030, the Board has approved the Phase-1 expansion project towards 2x growth, further strengthening our growth pipeline. Coupled with the addition of blocks of critical minerals and rare earth elements, we are strategically poised to transform into a true multi-metal powerhouse, unlocking sustained value for all our stakeholders."

Sandeep Modi, Chief Financial Officer, said: "Despite commodity headwinds and a weaker dollar, our focus on sustainable and efficient production enabled us to deliver a consistent EBITDA margin of c.50%. Staying true to our commitment to create long-term value for our shareholders, the Board declared an interim dividend of ₹ 10 per share during the quarter, reinforcing our track record of consistent returns. Amidst continued global uncertainties, our healthy balance sheet, structurally leaner cost base, and robust growth project pipeline position us well to deliver sustainable long-term value."

Note: Lowest-ever zinc cost of production in 1Q FY26 is since underground transition; HZAPL: Hindustan Zinc Alloy Pvt Ltd

User :- Radhika​​​​ Jain

Email :-radhika.jain@archetype.co