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Informist, Friday, Oct. 17, 2025

By Taniva Singha Roy 

MUMBAI – Hindustan Zinc Ltd.'s net profit for the September quarter rose 14.5% on year to INR 26.32 billion, owing to an increase in sales of zinc and silver on a yearly basis and higher base metal prices. The Vedanta Group company's net profit rose after declining in the previous quarter, but it was slightly higher than analysts' expectation of INR 25.06 billion profit.

Hindustan Zinc is one of the largest producers of zinc and silver globally. The average price of zinc rose over 7% sequentially in the September quarter and that of lead rose 1%. The average price of silver in this period rose around 18% from the June quarter and surged to record highs in the domestic market. 

Hindustan Zinc's total revenue from operations for the quarter was INR 85.25 billion, up 3.4% on year and also higher than INR 83.18 billion expected by analysts. Sequentially, the company's net profit rose over 19% and revenue rose over 10%.

During Apr-Sept, the metal company's net profit was INR 48.36 billion compared to INR 46.56 billion in the corresponding period a year ago. At the same time, revenue was INR 162.48 billion compared to INR 163.72 billion a year ago.

The company reported consolidated earnings before interest, tax, depreciation, and amortisation of INR 44.67 billion for the quarter, up 7% on year. The company reported a consolidated EBITDA margin of 52% for the September quarter, up from 50% a year ago. 

The company's operating margin rose to 42% from 40% a year ago, as the cost of production was lowest in five years. During the September quarter, the company's zinc output cost was down 7% on year at $994 per tonne.

Hindustan Zinc expects mined metal output for 2025-26 (Apr-Mar) at 1.13 million tonnes, up 1%. In the September quarter, mined metal production was 258,000 tonnes, up 1% on year, and in the first half of FY26, output was the highest ever at 523,000 tonnes, driven by better mined metal grades and improved recoveries, the company said in its investor presentation. The company expects refined metal output in FY26 at 1.08 million tonnes.

The metal company expects FY26 saleable silver output at 680 tonnes and the precious metal contributed over 40% to the company's profitability. The metal is likely to see sustained deficit in the near future from growing industrial use, supported by renewable energy and other emerging uses in automotive, electronics and 5G applications.

The company expects FY26 capital expenditure at $350 million-$400 million. The company has completed cellhouse debottlenecking at Dariba Smelting Complex and completion of debottlenecking at Chanderiya lead zinc smelter is expected to be completed by the third quarter of FY26.

It expects to complete zinc tailings reprocessing plant by Jan-Mar of 2028, it said. The board has approved India's first zinc tailing reprocessing plant of 10 million tonnes per annum at Rampura Agucha.

The company's debt-to-equity ratio for Jul-Sept was 0.79 times, down from 1.79 times a year ago. On Friday, shares of Hindustan Zinc closed 1.3% lower at INR 500.25 on the National Stock Exchange.  End

Edited by Tanima Banerjee

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