Hindustan Zinc (500188) Q1 25/26 earnings summary

Executive summary

• Achieved highest-ever first quarter mined metal production at 265,000 tons, maintaining global leadership in zinc and among top five silver producers, with 25+ years of mine life and a 77% domestic zinc market share.

• Zero fatalities reported, with enhanced safety management, ambitious 2030 sustainability goals, and recognition for ESG leadership.

• Secured LOIs and won three new critical mineral blocks (potash, rare earth, tungsten), supporting diversification and future growth.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2025, were approved by the Board and reviewed by statutory auditors with an unmodified opinion.

• Interim dividend of ₹10 per share (₹4,225 crore total) declared for FY 2025-26.

Financial highlights

• Revenue from operations for Q1 FY2026 was ₹7,771 crore, down 4% year-over-year due to lower zinc and lead prices and volumes, partially offset by higher silver prices and byproduct realization.

• EBITDA stood at ₹3,860 crore, marginally down 2% year-over-year, maintaining an industry-leading margin of around 50%.

• Profit after tax for the quarter was ₹2,234 crore, down 5% year-over-year; EPS at ₹5.29.

• Cash and cash equivalents totaled ₹9,340 crore at quarter end.

• Achieved lowest-ever first quarter zinc cost of production at $1,010/MT, a 9% improvement year-over-year.

Outlook and guidance

• Confident of achieving the lower end of full-year cost guidance, with zinc cost of production advancing toward $1,000 per ton.

• Expansion projects to increase refined metal capacity to 1.38 million tons and mining capability to 1.5 million tons per annum, with board-approved capex of approximately ₹12,000 crore.

• Revenue and EBITDA projected to increase by ₹40,000 crore and ₹21,000 crore, respectively, over the next 3-4 years with new capacity.

• Silver and metal production expected to improve in Q3 and Q4, supporting annual guidance.

• Domestic zinc demand expected to strengthen, driven by robust steel production and positive economic indicators.