Hindustan Zinc Limited, India’s sole and the world’s largest integrated zinc producer, announced its financial and operational results for the quarter ended June 30, 2025. The company reported its highest-ever mined metal output for a first quarter, reaching 265,000 tonnes.
It also achieved record production volumes at Hindustan Zinc Alloys (HZAPL), raising the proportion of value-added products to approximately 24%. The company delivered its lowest first-quarter zinc production cost at US$ 1,010 per tonne, representing a 9% improvement year-over-year.
Net profit stood at ₹2,234 crore, surpassing analyst projections, with an industry-leading EBITDA margin of roughly 50%. The silver business remained a key contributor, accounting for nearly 41% of the company’s profit.
Hindustan Zinc has broadened its resource base by acquiring key mineral blocks, including Potash and Halite reserves in Rajasthan and Rare Earth Elements (REEs) in Uttar Pradesh. These strategic additions mark the company’s entry into new segments beyond its traditional focus on base metals, strengthening its long-term growth prospects.
On the sustainability front, the company reported that renewable energy now accounts for approximately 19% of its total energy consumption. This reflects steady progress toward its goal of sourcing 70% of its energy needs from renewables by FY28, reinforcing its commitment to reducing its environmental impact.
In terms of expansion, the Board approved a significant ₹12,000 crore investment for the first phase of capacity enhancement, which includes setting up a new 250 KTPA integrated smelting unit and upgrading mining and milling facilities. The company also declared an interim dividend of ₹10 per share, totaling ₹4,225 crore in payouts, and retained its ‘AAA’ credit rating from CRISIL, underscoring its strong financial position.
Arun Misra, CEO, stated “Our record mined metal production and lowest zinc cost this quarter underscore our drive for efficiency and cost leadership. The Board’s approval of the first phase of capacity expansion positions us to meet growing zinc demand through 2030. With the acquisition of new mineral resources, we are evolving into a diversified metals business, delivering long-term value.”
Sandeep Modi, CFO, added “Despite global market pressures and currency volatility, our focus on sustainable operations and cost efficiency helped maintain a robust EBITDA margin. Our consistent dividend payout highlights our commitment to shareholder value. Strong liquidity and a clear growth pipeline give us the confidence to navigate future uncertainties.”
The company reported revenue of ₹7,771 crore for the quarter, reflecting a 4% year-on-year decline. This dip was primarily driven by weaker zinc and lead prices, along with reduced sales volumes. However, stronger silver prices and higher by-product income helped partially offset the impact of the lower base metals market.
EBITDA stood at ₹3,860 crore, down 2% compared to the same period last year. Despite the revenue pressure, the company maintained healthy margins supported by strict cost controls and favorable silver pricing. Profit after tax dropped 5% to ₹2,234 crore, with an effective tax rate of approximately 25% for the quarter.
Production costs continued to improve, with zinc production costs hitting a record low of US$1,010 per tonne. This was achieved through enhanced ore grades, greater use of domestic coal and renewable energy, and improved by-product recoveries, all contributing to better operational efficiency.
As of June 30, 2025, the company’s cash and investments stood at ₹9,340 crore, mainly deployed in top-rated debt instruments, indicating robust liquidity. Total borrowings amounted to ₹13,524 crore, maintaining a solid balance sheet that supports stable investment-grade credit ratings.
Key project updates include the upcoming commissioning of a 160 KTPA new roaster at the Debari plant, scheduled for Q2 FY26. Smelter debottlenecking at Dariba and Chanderiya facilities is expected to be completed in the same quarter. Additionally, a 510 KTPA fertilizer plant is under development and targeted for completion in Q1 FY27.
The company has approved a major expansion plan to increase integrated metal production capacity by 250 KTPA, alongside capacity enhancements at existing mines and processing mills. A new recovery project aimed at extracting silver and lead from smelter residues at Dariba is expected to go live by Q4 FY26, showcasing its focus on innovative technologies.
On the sustainability front, the company launched its 2030 environmental and social performance goals and was recognized among Time Magazine’s 2025 World’s Most Sustainable Companies. It achieved 3.32x water positivity, inaugurated a health facility at Rajpura Dariba Mine, invested ₹5 crore in the Baghdarrah Crocodile Conservation Reserve, and signed an MoU with EcoPro Earth Pvt Ltd for sustainable construction materials. The company also committed ₹3.1 crore to water conservation under the ‘Vande Ganga’ initiative and received multiple awards, including recognition from the British Safety Council and CNBC-TV18 for ESG leadership.
A Vedanta Group company, Hindustan Zinc Limited is the world’s largest integrated zinc producer and ranks among the top five global silver producers. With over 77% market share in India’s primary zinc segment and exports to over 40 countries, the company plays a vital role in the global metals supply chain.
Recognized for sustainability leadership, Hindustan Zinc was named the world’s most sustainable metals and mining company for the second consecutive year by the S&P Global Corporate Sustainability Assessment (2024). The company recently introduced EcoZen, Asia’s first low-carbon zinc brand. Produced using renewable energy, EcoZen offers a carbon footprint approximately 75% lower than traditional zinc products.
Hindustan Zinc is also a certified 3.32 times Water Positive company and is actively working toward its goal of Net Zero emissions by 2050 or earlier. Through its community development efforts, it has positively impacted 1.9 million lives, ranking among the Top 10 CSR companies in India. As a global leader in the mining sector, Hindustan Zinc remains committed to providing the critical minerals needed for the world’s energy transition and supporting sustainable industrial development.
