Hindustan Zinc (500188) Q1 25/26 earnings summary

Executive summary

• Achieved highest-ever first quarter mined metal production at 265,000 tons and lowest-ever Q1 zinc cost of production since underground transition, reinforcing global cost leadership and safety performance with zero fatalities.

• Maintains global leadership as the largest integrated zinc producer and among the top five silver producers, with 25+ years of mine life and a 77% domestic zinc market share.

• Launched ambitious 2030 sustainability goals, advanced water positivity to 3.32x, and completed ICMM assessment; recognized for ESG leadership and engaged with over 40 tech startups for innovation.

• Secured LOIs and won three new critical mineral blocks (potash, rare earths, tungsten), supporting diversification and India's resource security.

• 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.

Financial highlights

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

• EBITDA stood at ₹3,860 crore, down 2% year-over-year, maintaining a ~50% margin.

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

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

• Interim dividend of ₹10/share paid, totaling ₹4,225 crore for the quarter.

Outlook and guidance

• Confident in achieving lower end of full-year cost guidance; Q1 cost performance typically 4% higher than annual average.

• Silver and metal production expected to improve in Q3/Q4 as debottlenecking and new roaster commissioning complete.

• Board approved phase-1 of 2x growth with a 250 Ktpa integrated metal capacity expansion, targeting completion in 36 months.

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

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