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Informist, Friday, Jul. 24, 2026

 

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--Hindustan Zinc: Zinc production cost down 16% YoY to $851 per tn in Q1 
--CONTEXT: Comments by Hind Zinc managment at post-earnings analyst call 
--Hindustan Zinc: Lead, zinc prices to stay resilient going forward 
--Hindustan Zinc: Silver demand remains high on industrial demand 
--Hindustan Zinc: Low cost of zinc production led to EBITDA margin expansion 
--Hindustan Zinc: Expect completion of phosphoric plant in Jul-Sept 
--Hindustan Zinc: Expect commissioning of fertiliser plant in Apr-Jun FY28 

 

By Astha Oriel and Narayana Krishna

 

NEW DELHI – Hindustan Zinc Ltd. expects the prices of lead and zinc to remain resilient going forward, the management told analysts in a post-earnings conference call Friday. In the wake of the West Asia crisis, zinc prices have peaked at $3,625 per tonne while lead is at $1,954 per tonne.

 

"Looking ahead, our priorities remain clear, maintaining industry-leading core competitiveness, executing our growth budget safely and efficiently, preserving balance sheet strength, and delivering superior returns," the management said. 

 

For the June quarter, the company's net profit rose over 146% on year to INR 54.25 billion on revenues of INR 136.87 billion. Its power and fuel costs increased over 11% sequentially due to the utilisation of "linkage coal" and impact of imported coal, according to the management. Coal linkage refers to a long-term understanding that guarantees supply of a specific quantity of coal from a designated mine to an end-user.

 

The company said silver demand remained high in the quarter under review and the output of refined saleable silver was 149 tonnes. The price of silver moderated to $73 per troy ounce in the quarter, according to the management. The company said silver fundamentals were supported by robust industrial demand from solar, electronics, and electrification applications, alongside continued investment interests. "While near-term price movements may remain volatile, the medium-term outlook continues to be constructive, driven by structural demand from the energy transition and relatively constrained global supply growth," the management said.

 

For the financial year 2026-27 (Apr-Mar), the company is targeting 1.1 million tonnes in refined metal production. The company's refined metal output was 260,000 tonnes in the June quarter. The management said it sees "no reason" for not achieving the target. "We are absolutely confident of producing, typically Q2 (September quarter), Q3 (December quarter), as we go forward the production numbers are the highest, and Q4 (March quarter) normally we touch even close to 280-290 kT (kilotonnes). So I don't see any reason why we will have any difficulty in reaching 1.1 million tonnes," a senior company official said.

 

The company's zinc production cost declined 16% on year to $851 per tonne. The management said the low cost of production led to earnings before interest, tax, depreciation, and amortisation margin expansion. The company expects to complete its phosphoric acid plant in the September quarter, and the commissioning of a fertiliser plant in the March quarter of FY28.

 

The company announced its June quarter earnings during market hours. Friday, shares of the company closed at INR 531.95 on the National Stock Exchange, up slightly from Thursday.  End

 

Edited by Rajeev Pai

 

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