Udaipur. Hindustan Zinc Limited (BSE: 500188 & NSE:
HINDZINC), the world’s largest integrated zinc producer and among the top five
silver producers globally, announced its financial results for the second
quarter and half year ended 30th September 2025. The company reported its
best-ever second quarter mined metal production of 258 Kt, alongside a
five-year low zinc cost of production at $ 994 per tonne, improving 7% YoY and
2% QoQ. The company also recorded the highest-ever 2Q revenue from operations
of ₹ 8,549 crore, up 10% QoQ and 4% YoY, and the highest-ever 2Q EBITDA of ₹
4,467 crore, up 16% QoQ and 7% YoY, maintaining an industry-leading EBITDA
margin of 52%. Resultantly, the profit after tax stood at ₹ 2,649 crore, rising
19% QoQ and 14% YoY.
Silver remained a strong contributor, driving approximately
40% of overall profitability, reinforcing the company’s unique position to ride
the emerging silver wave. During the quarter, Hindustan Zinc delivered superior
total shareholder returns of 7%, significantly outperforming the Nifty 100’s 3%
decline, underscoring its consistent value creation and operational excellence.
Reflecting its robust market performance and growing investor confidence, the
company was also included in the Nifty 100 and Nifty Next 50 indices, effective
September 30, 2025.
In 2Q FY26, Hindustan Zinc commissioned a new 160 Ktpa
Roaster at Debari and completed debottlenecking at the Dariba Smelting Complex,
boosting overall production efficiency. During the quarter, the Board also
approved India’s first 10 Mtpa Zinc Tailings Reprocessing Plant at Rampura
Agucha — a significant milestone in advancing resource circularity and
sustainable growth.
Commenting on Hindustan Zinc’s performance, Arun Misra,
Chief Executive Officer, said:
“I am delighted to share that we have delivered the
best-ever second quarter mined metal production with a 5-year lowest zinc cost
of production of $994 per tonne, reflecting the continuous operational
excellence, technology intervention and dedication of our people. Our inclusion
into the International Council on Mining and Metals (ICMM) as the first-ever
from India reiterates our deep commitment to responsible and sustainable
mining. As we embark on our next phase of 2x growth expansion, recovering value
from every resource, reusing materials through circular processes and growing
portfolio of energy transition metals, we are driving India’s journey towards
clean energy independence.”
Sandeep Modi, Chief Financial Officer, said:
“The quarter’s strong financial performance reflects the
benefits of our cost efficiency and portfolio diversification. With silver
contributing c.40% to profits, we are well positioned to leverage commodity
tailwinds while strengthening our sustainable value creation through
disciplined cost management, growth projects, value-added offerings, and
critical mineral development. We are also proud to be included in the Nifty 100
and Nifty Next 50 indices - a recognition that reaffirms our strong fundamentals,
consistent performance, and growing presence among India’s leading companies.”
ESG highlights:
Fatality free operations during the year
First Indian Company to join International Council on Mining
and Metals (ICMM). This marks the council’s first new member since 2021. By
joining ICMM, Hindustan Zinc aligns with 40 rigorous performance expectations
spanning Environmental, Social and Governance (ESG) practices, further
strengthening its spot amongst the global leaders in “responsible and
sustainable” mining. The Company continues to set new benchmarks in responsible
mining, reinforcing India’s pivotal role in delivering a sustainable and ethical
resource future.
Signed two additional MoUs with Greenline Mobility Solutions
Ltd for deployment of 100 EV trucks for concentrate movement and LNG trucks for
finished good logistics, taking the overall fleet to 400.
Inaugurated India’s first Diesel-Electric Load Haul Dump
(LDH) machine at Rajpura Dariba Mine.
Zinc India Foundation was honoured with the ISC-FICCI
Sanitation Award for Excellence in Wastewater Treatment & Reuse for its
state-of-the-art sewage treatment plant in Udaipur.
Hindustan Zinc’s R&D project “HZL’s Greener Steps
Towards Sustainable Operations” was honoured as an “Excellent Environment
Project” at the CII National Award for Environmental Best Practices 2025.
Honoured with Gold at the prestigious Brandon Hall Group
Human Capital Management Excellence Awards in the category of Best in Leading
Diversity, Equity, Inclusion and Belonging (DEIB) Initiatives.
Revenue :
Highest-ever 2Q revenue of ₹ 8,549 crores during the
quarter, up 10% QoQ driven by higher commodity prices, stronger dollar, and
higher by-product realisations, partly offset by lower production.
EBITDA:
Best-ever second quarter EBITDA of ₹ 4,467 crores, up 16%
QoQ driven by higher commodity prices, lower cost of production, higher
by-product realisations, softened input commodity prices and stronger dollar
was partly offset by lower production. The company continues to maintain an
attractive industry leading EBITDA margin of 52% up c.260 bps QoQ.
Profit after taxes (PAT):
Profit after tax stood at ₹ 2,649 crores, up 19% QoQ in line
with EBITDA. The effective tax rate for the quarter was 25.2%.
Zinc Cost of Production (COP):
Clocked the 5-year lowest 2Q Zinc COP, which stood at US$
994 per tonne, better sequentially driven by softened input commodity prices
and higher by-product realisations.
Outlook for FY2026
Particulars FY2026
Revised Guidance
Production
Mined Metal 1,125
(±10) kt
Refined Metal 1,075
(±10) kt
Saleable Silver 680
(±10) MT
Zinc CoP c.US$
1,000 per MT
Growth Capex US$
350-400 million
Liquidity and Investment
As on September 30, 2025, the company had healthy gross
investments and cash, and cash equivalents of ₹ 8,155 crores invested in high
quality debt instruments. Total borrowings outstanding as on September 30,
2025, was ₹ 10,702 crores. The net debt stood at ₹ 2,547 crores as on September
30, 2025, in comparison to ₹ 4,185 crores as on June 30, 2025.
Company has consistent Investment grade credit rating of AAA
from CRISIL, demonstrating the strength of the balance sheet.
Contribution to Exchequer
During the 1H, company has contributed to the national
exchequer of ₹ 8,367 crore. This includes the contribution to the Rajasthan
state exchequer of ₹ 2,467 crore, including mining royalties.
Project Update
160 Ktpa roaster at Debari commissioned.
Completed cellhouse debottlenecking at Dariba Smelting
Complex and completion of debottlenecking at Chanderiya Lead Zinc Smelter is
expected by 3QFY26. This will increase the overall metal capacity by 21 Ktpa.
The 510 Ktpa Fertiliser plant is under progress and is
expected to be completed by 1QFY27.
The innovative hot acid leaching technology for recovery of
lead and silver from smelting waste at Dariba is expected to be completed by
4QFY26.
In June 2025, Board has approved plans for expanding the
integrated refined metal capacity by 250 ktpa along with matching mines &
mills capacity with an investment of c.₹ 12,000 crores. Key EPC partners have
been locked in, and completion is expected by 2QFY29.In August 2025, Board has
approved India’s first tailings reprocessing plant at Rampura Agucha with a
feed capacity of 10 Mtpa and an investment of ₹ 3,823 crore with expected
completion by 4QFY28.
