Hindustan Zinc Limited (HZL), a Vedanta Group company and the world’s largest integrated zinc producer, reported a consolidated net profit of ₹2,234 crore for the quarter ended June 30, 2025 (Q1 FY26). This marks a 5% decline year-on-year (YoY) and a sharper 26% drop quarter-on-quarter (QoQ), impacted by lower zinc and lead prices and weaker volumes.
Despite the dip in profits, the company posted its highest-ever first-quarter mined metal production at 2.65 lakh tonnes, while achieving its lowest zinc production cost since transitioning to underground mining at $1,010 per tonne, down 9% YoY.
Revenue and Margin Performance :
HZL recorded revenue from operations of ₹7,771 crore, representing a 4% decline compared to ₹8,130 crore in Q1 FY25, and a 14% drop from ₹9,087 crore in the previous quarter (Q4 FY25). The decline was mainly due to lower base metal prices and volumes, partly offset by higher silver prices and improved by-product realization.
EBITDA stood at ₹3,860 crore, down 2% YoY and 20% QoQ. The company maintained a strong EBITDA margin of approximately 50 percent, aided by efficiency gains and a lean cost structure.
Production Snapshot :
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Mined metal output: 2.65 lakh tonnes (up 1% YoY)
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Refined metal production (Zinc + Lead): 2.50 lakh tonnes (down 7% YoY, down 5% QoQ)
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Silver production: 149 tonnes (down 16% YoY)
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Wind power generation: 134 million units (up 113% YoY)
Zinc and lead refined output declined 6% and 14% YoY, respectively, due to lower processed ore. Silver production also fell, impacting top-line contribution.
Cost Leadership and Profitability :
HZL achieved record-low zinc cost of production at $1,010 per tonne, driven by improved ore quality, use of domestic coal and renewable energy, and increased by-product gains. However, costs rose 2% QoQ due to lower volume leverage.
Silver remained a strong earnings driver, contributing approximately 41% of EBITDA. The company also declared a ₹10 per share interim dividend, totaling ₹4,225 crore in shareholder payouts for the quarter.
Investment and Expansion Plans :
The board has approved a capital investment of approximately ₹12,000 crore for a Phase-1 expansion to increase refined metal capacity by 2.5 lakh tonnes annually. The expansion includes matching enhancements in mines and mill capacity.
HZL also secured two critical mineral blocks:
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Potash in Rajasthan
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Rare Earth Elements in Uttar Pradesh
Key Project Updates
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160 Ktpa zinc roaster at Debari to be commissioned by mid-Q2 FY26
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Fertilizer plant (510 Ktpa) expected by Q1 FY27
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New technology for silver and lead recovery from smelting waste will be operational by Q4 FY26
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Debottlenecking at Dariba and Chanderiya smelters to complete in Q2 FY26
Strong Financial Position :
As of June 30, 2025, HZL reported cash and investments worth ₹9,340 crore, with total borrowings of ₹13,524 crore. The company holds a AAA credit rating from CRISIL, reflecting a stable financial outlook.
Focus on Sustainability
HZL continued advancing its environmental and social goals:
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Declared 3.32x water positivity
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Featured in Time Magazine’s list of the Top 500 Global Sustainable Companies
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Invested ₹5 crore in Baghdarrah Crocodile Reserve (Udaipur)
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Committed ₹3.1 crore for water harvesting in Rajasthan
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Launched Zinc Freight Bazaar, a digital logistics platform for improved supply chain agility
The company also received multiple accolades for ESG performance and HR excellence, including the British Safety Council’s “Team of the Year” award.
Outlook :
Commenting on the results, CEO Arun Misra said, “Our focus on operational excellence has helped us deliver record production with the lowest zinc cost. We are well-positioned for long-term growth with our expansion projects and entry into critical minerals.”
CFO Sandeep Modi added, “Despite global volatility, we’ve maintained our EBITDA margin and continued rewarding shareholders. Our lean cost structure and strong balance sheet enable us to deliver sustainable returns.”