Hindustan Zinc Q1 Results: Net profit, revenue dip; firm clocks highest-ever mined metal production

The Vedanta group firm’s total revenue from operations also dipped 4.42% year-on-year (YoY) to ₹7,771 crore in Q1 FY26 as compared to ₹8,130 crore in the corresponding quarter last year.

The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined 2.2% to ₹3,859 crore in the period ended June 2025 as against ₹3,946 crore in Q1 FY25. The margin stood at 49.6% in contrast to 48.5% YoY.

The decline in revenue and operating profit came on the back of lower volumes and lower zinc and lead commodity prices, partly offset by higher silver prices, a stronger dollar, and higher by-product realisations.

Shares of the firm were trading at ₹433.80 apiece on the National Stock Exchange, slipping 0.75% following the earnings.

During the quarter, Hindustan Zinc had clocked the highest-ever mined metal production of 265 Kt, up 1% YoY. Meanwhile, it registered the lowest-ever zinc cost of production of $1,010 per tonne, rising 9% YoY.

The company said it is moving towards doubling growth with Phase-1 integrated metal expansion by 250 Ktpa. During the quarter, HZL won two critical mineral blocks—potash in Rajasthan and rare earth elements in Uttar Pradesh.

“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,” said Arun Misra, Chief Executive Officer of HZL, while commenting on the earnings.

As of June 30, 2025, the company has healthy gross investments and cash and cash equivalents of ₹9,340 crore invested in high-quality debt instruments. The total borrowing outstanding at the end of the quarter stood at ₹13,524 crore.

Hindustan Zinc (HZL) is a leading integrated zinc producer and amongst the top five silver producers globally. The company supplies more than 40 countries and holds about 75% of the primary zinc market share in India.