Hindustan Zinc - Galvanize Capital of Investors?

James · July 16, 2025, 12:13pm

The upcoming board meeting on July 17 could be significant. Government-nominated directors are reportedly planning to question HZL’s management about its financial relationship with Vedanta Ltd (our promoter) — especially the ₹1,560 crore in brand fees paid to Vedanta.

This comes after Viceroy Research’s short report, which accuses Vedanta Resources— the parent of Vedanta Ltd — of being financially distressed and using group companies like HZL to stay afloat.

While HZL says the brand fee is standard and board-approved, the lack of transparency around these payments and the scale of related-party transactions is something we, as shareholders, should be watching closely.

The parent company is under pressure, we need to ensure HZL’s cash flows and independence aren’t compromised. The UK parent company is hurting Indian listed subsidiaries

James · July 17, 2025, 5:54am

Update:
Millions of USD brand fees have been paid to UK parent company, while not taking any approval from the government.

Hindustan Zinc (HZL) may have violated its shareholder agreement (SHA) with the Government of India by entering into a brand fee agreement with Vedanta in 2023 without government approval.

It could trigger what’s called an “event of default” under the SHA.

Explained in the article:
If HZL breaches the agreement, Vedanta (as the majority shareholder) has 15 days to fix it.
If they don’t, the Government of India has two powerful options:
Buy Vedanta’s stake in HZL at a 25% discount to market price.
Force Vedanta to buy the government’s stake at a 25% premium.

This clause was built into the original privatization deal to protect public interest and ensure checks on promoter control.

James · July 18, 2025, 6:32am

Vedanta is Crippling HZL — A Must-Read Perspective from an Industry Insider

Ashok Sharma, a former Planning Commission advisor and senior geologist, has published a powerful piece on Countercurrents that lays bare how Vedanta’s financial practices are undermining Hindustan Zinc

Whoever invested in HZL - You need to pay attention:

HZL’s cash reserves are being drained through aggressive dividend payouts — not for reinvestment, but to service Vedanta Resources’ offshore debt.
This has crippled HZL’s ability to invest in zinc exploration and long-term growth, despite India’s strategic need for domestic zinc production.

Sharma argues that HZL is being treated as a cash extraction vehicle, with little regard for its operational health or shareholder value. He warns that this could jeopardize India’s mineral security, and calls for urgent government intervention to protect public interest. This article adds weight to the concerns raised by Viceroy, Sucheta Dalal, and others
— and it comes from someone who understands both the geology and the governance.

Read the full article here:

If you’re invested in HZL, this is essential reading!

and check the video by Sucheta Dalal professional, which is very credible. My summary and post:

ranvir · August 31, 2025, 1:00pm

Hindustan Zinc -

Q1 FY 26 results and concall highlights -

Total Reserves and Resources @ 453 MMT. Company has world’s second largest Zinc reserves and resources with 25 yrs + of mine life

In last 5 yrs, company has added 131 MMT to its reserves and resources and used 81 MMT from its reserves and resources. Net addition of reserves and resources stand @ 50 MMT which has taken R&R from 403 to 454 MMT

454 MMT ore R&R correspond to 13 MMT of metal resources / 30 MMT of metal R&R. Company’s ore material is graded @ 5.6 pc Zn, 1.6 pc Pb and 55gm/ton of Ag. Company has added 9 MMT and used 6 MMT of metal’s resources in last 5 yrs - taking total metal resources from 10 MMT to 13 MMT. Company targets disciplined exploration to maintain its mine life > 25 yrs

Company has set up a dedicated subsidiary - Hindmetal Exploration Services Pvt Ltd - to continuously focus on exploring, discovering, developing and tapping mineral resources. The subsidiary has interest in exploration of all minerals across the globe by implementing best in class technologies and practices

Zinc smelting capacity @ .913 MMT
Lead smelting capacity @ .210 MMT
Silver refining capacity @ 800 MT

Captive power generation capacity @ 625 MW

Among India’s largest producer of Wind Power with a generation capacity of 274 MW - spread across 5 states

Company’s mkt share wrt Zinc in domestic mkt stands @ 77 pc. With rising domestic steel production, demand for Zinc is expected to also keep rising ( for Galvanising )

Company produced 687 MT of Silver in FY 25 making it world’s 4th largest Silver producer. Aiming to produce 700 and 750 MTs of Silver in FY 26, 27

Company’s last 5 yrs CAGR wrt Zinc mined and refined stands @ 4 pc - expected to incline further in FY 26

Q1 FY 26 outcomes -

Revenues - 7723 vs 8130 cr
EBITDA - 3816 vs 3951 cr ( margins @ 49 vs 49 pc )
PAT - 2204 vs 2358 cr

In Q1, company’s zinc COP stood @ $ 1010 vs $ 1052 ( avg for FY 25 ) - led by better grade ore, soft input commodity pressures, improved coal linkages, increased renewable energy use, automation and digitisation

Company has entered into a 25 yr long renewable power purchase agreement with Serentica ltd - this would @ a fixed flat rate of energy buying without any inflation and would help the company move towards its stated goal of reducing costs to $ 1000 / Ton

Company’s 5.1 lakh tons per annum fertilizers plant is under construction @ Chanderia. It ll be producing DAP fertiliser and NPK nutrients. Likely to go live by Q4 FY 26. The fertiliser plant that the company is expected to commission next yr has the potential to do peak EBITDA of 450 - 500 cr / yr

FY 26 guidance -

Mined metal production @ 1.125 million MT ( vs 1.095 million MT in FY 25 )
Silver production @ 700 MT ( vs 687 MT in FY 25 ) COP @ $ 1025 - 1050 / ton ( vs $ 1052 in FY 25 ) Capex @ Rs 1900- 2100 cr

FY 25’s avg prices vs current metal prices -

Zinc / MT - $ 2875 vs 2826 ( as on 31 Aug ) - in Q1, they were lower
Lead / MT - $ 2046 vs 1997 ( as on 31 Aug ) - in Q1, they were lower
Silver / Oz - $ 31 vs $ 40.3 ( as on 31 Aug ) - have been climbing steadily from Q1 into Q2

In FY 25, 13 pc of total power used by the company came from renewable sources. Company aims to take it to 30 pc by FY 26 end !!! By FY 28, they aim to take their renewable power usage to a massive 70 pc

A 5 pc drop in COP inclines the company’s EBITDA by 400-450 cr

Company is slated to commission a new zinc Roaster ( @ Debari ) with a capacity of 0.16 MMT / yr - making it ready to produce > 1.2 MMT of refined metal per year. It should be commissioned by middle of Q2

Also implementing advanced technologies at its facilities to recover additional Pb and Ag. These advanced technologies ( in addition to fuming technologies ) should help them recover additional 27 Tons of Ag and 6000 Tons of Pb per year. This should be commissioned by Q4 FY 27

In medium to long term, company aspires to increase its metal production to 1.5 MMT / yr ( initially ) and then to 2 MMT ( eventually ). Also intend to increase their reserves to 2X of current levels by indulging in domestic and international exploration activities. This would entail a lot of CAPEX - should be doable with internal accruals as the company produces a lot of cash / yr

Concall notes from Q1 FY 26 -

Zinc and Lead prices in Q1 were soft - recovering towards the end of the Qtr. Have held up well in July and Aug

Q1 mined metal production @ 265000 MT = 0.265 MMT

Mined Silver worth 149 MT in Q1

Have secured mining rights for 3 new blocks @ -

UP for Rare earth metal ( Monazite ore - used to produce Neodymium - a key component for rare earth magnets ) mining
Rajasthan for Potash mining ( an important step towards securing India’s potash fertiliser demands )
Andhra for Tungsten mining ( Tungsten is widely used in defence, electronics and clean energy technologies )

In Q1, company use of renewable energy has already increased to 19 pc ( vs an avg of 13 pc for LY ). This is happening as Serentica’s renewable energy capacities are coming on stream

In Q1, COP is generally higher by 4 pc vs full yr avg. This indicates, company is on track to achieve a COP of well below $ 1000 / MT for full FY

Coal mix for energy production @ 55:45 between Domestic : Imported coal. As the ratio of imported coal reduces, the COP should reduce further

The Potash mine block that the company has got shall eventually be integrated with their fertiliser plant

Company is also bullish about Monazite Ore extraction. If the reserves are found of be attractive and if they can crack the technology of extracting Neodymium from Monazite - it can add a lot of value for the company

Roughly speaking - company generates 10k cr of free cash / yr. Capex requirements for next 3-4 yrs shall be around 30-32k cr. That means 18k cr shall still be available for distribution to the shareholders

For the upcoming fertilisers plant, total capex requirement is around 1800 cr out of which 1000 cr has been spent and the rest shall be spent over the course of current FY. Expecting aprox 2000 cr of revenues @ 20-23 pc EBITDA margins from this plant. Expecting a quick ramp-up - should happen within FY 27

Disc: holding, biased, not SEBI registered, not a buy/sell recommendation, posted for educational purposes

SAM2003 · October 16, 2025, 9:03am

If promoter of this company is not Mr. Anil Agrawal, with this huge tail wind shares should be frying. Only incremental profit of 4000 cr due to silver..

Chetanpinto · October 16, 2025, 10:54am

Great point .

But do also note that some MFs have recently begun adding this, perhaps opportunistically (eg. silver exposure) or maybe due to the fact that ‘this time might be different’.

ranvir · November 30, 2025, 6:14am

Hindustan Zinc -

Q2 FY 26 results and concall highlights -

Q2 outcomes -

Mined metal production - 2.58 vs 2.56 lakh tons
Refined metal production - 2.46 vs 2.62 lakh tons
Avg cost of production @ $ 994 / ton vs $ 1071 / ton

Avg silver prices in Q2 @ $ 39 / ounce, up 30 pc YoY. Avg prices in Oct + Nov are in the range of $ 49-50 / ounce. Silver mkt continues to remain in deficit led by increased industrial demand from renewable energy, electronics, auto and 5G applications

Silver contributes to 40 pc of company’s EBITDA. Surge in silver prices is a great outcome for Hind Zinc

Company produced 144 tons + 149 tons of silver in Q2 and Q1 respectively. Company is 4th largest silver producer - globally

Progress on ongoing projects -

1.6 lakh MTPA Roaster @ Derbari - commissioned in Q2 FY 26

5.1 lakh MTPA fertilisers plant expected to be commissioned in Q1 FY 27. It ll be producing DAP fertiliser and NPK nutrients. The fertiliser plant that the company is expected to commission next yr has the potential to do peak EBITDA of 450 - 500 cr / yr

Hot Acid leaching plant - to a recover additional 27 tons of Silver and 6000 tons of Lead / yr from smelting waste is expected to be ready in Q4 FY 26

De-Bottlenecking @ Chanderia Zinc smelter expected to be commissioned in Q3 FY 26

De-Bottlenecking @ Dariba Lead smelter commissioned in Q2 FY 26

Notes from last 2 concalls -

In FY 25, 13 pc of total power used by the company came from renewable sources. Company aims to take it to 30 pc by FY 26 end !!! By FY 28, they aim to take their renewable power usage to a massive 70 pc

In medium to long term, company aspires to increase its metal production to 1.5 MMT / yr ( initially ) and then to 2 MMT ( eventually ). Also intend to increase their reserves to 2X of current levels by indulging in domestic and international exploration activities. This would entail a lot of CAPEX - should be doable with internal accruals as the company produces a lot of cash / yr

Company has set up a dedicated subsidiary - Hindmetal Exploration Services Pvt Ltd - to continuously focus on exploring, discovering, developing and tapping mineral resources. The subsidiary has interest in exploration of all minerals across the globe by implementing best in class technologies and practices

Have secured mining rights 3 new blocks @ -

UP for Rare earth metal ( Monazite ore - used to produce Neodymium - a key component for rare earth magnets )

Rajasthan for Potash mining ( an important step towards securing India’s potash fertiliser demands ). The Potash mine block that the company has got shall eventually be integrated with their fertiliser plant

Andhra for Tungsten mining ( Tungsten is widely used in defence, electronics and clean energy technologies )

Company’s smelting capacities -

Zinc smelting capacity @ .913 MMT + .16 MMT ( recently commissioned @ Derbari )
Lead smelting capacity @ .210 MMT
Silver refining capacity @ 800 MT

Power generation capacities - Captive power generation capacity @ 625 MW. Among India’s largest producer of Wind Power with a generation capacity of 274 MW - spread across 5 states

Company has entered into a 25 yr long renewable power purchase agreement with Serentica ltd - this would @ a fixed flat rate of energy buying without any inflation and would help the company move towards its stated goal of reducing costs to $ 1000 / Ton

Notes from Q2 concall -

Revenues - 8525 vs 8242 cr, up 3 pc
EBITDA - 4426 vs 4104 cr, up 8 pc ( margins @ 52 vs 50 pc )
PAT - 2632 vs 2298 cr, up 14 pc ( due higher other income and lower interest outgo )

Zinc prices continue to remain firm crossing and sustaining above $ 3000 / Ton on LME ( in Oct - Nov ). Silver prices continue to remain buoyant, sustaining @ around $ 50 / Ounce in Oct - Nov. Lead prices are holding steady - at similar levels as Q1

In H1, company’s zinc COP stood @ $ 1002, down 8 pc vs LY H1. For full year FY 26, Zinc’s COP should remain at < $ 1000, one full year before the initial tgt year of FY 27

Growth capex for FY 26 should be around 3500 cr - includes all the ongoing projects like Fertiliser plant, de-bottlenecking of Zinc and Lead smelters, hot acid leaching plant ( as mentioned above ). Maintenance capex for current FY should be around 400 - 500 cr

Company’s full yr tgt for Silver production stands @ 680 Tons. In H1, company has produced aprox 290 Tons. For H2, company is diverting resources from other mines to SK mines, incentivising contractors and workers at the sites - to ensure that they r able to meet the targeted silver production in H2 ( specially when the Silver prices are so good ). For FY 27, Silver production should be between 700 - 750 tons

Have announced a capex of 12000 cr for setting up of 250 KTPA zinc smelter @ Debari. Have already started work on ground ( yet to finalise the technology to be used in the Smelter ). This should take 2.5 - 3 yrs before it goes commercial

Percentage of power used by the company that came from renewable sources in Q2 stood @ 19 pc. Aim to exit FY 26 with renewable share of power consumption @ 25 pc

By the end of FY 26, company’s net cash position should be neutral / near Zero ( ie Cash on books - Debt on books )

Company’s hedged positions in Zinc / Silver continue to be at around 20 pc of their annual production. Rest 80 pc remains unhedged

With the commissioning of 1.16 lakh MTPA smelter at Derbari ( as mentioned above ), company should be able to achieve high single digits / low double digits volume growth in FY 27

Disc: holding, biased, not SEBI registered, not a buy sell recommendation, posted only for educational purposes

SAM2003 · December 3, 2025, 6:42am

“Given the phenomenal rise in silver prices, the company is projected to earn an additional ₹5,000 crore in bottom line. This estimate reflects the direct benefit from higher realizations on silver-linked products."

Midhunjoe · January 3, 2026, 3:41am

Q3 update by HZL. Looks like Silver production won’t touch the estimated c. 680 MT for the year. With the same run rate 600 looks like a more realistic figure. Since they have hedged 137 tonnes at $37 only the balance c.160 tonnes in H2 will get the spot silver advantage…

Disc : Invested

SAM2003 · January 3, 2026, 1:42pm

The Vedanta Group, led by unethical promoter, once offered shareholders ₹87 per share to delist the company, claiming it was a fair value for Vedanta’s assets. That attempt failed. Ironically, over the next five years, the same company distributed a staggering ₹220 per share as dividends—funds largely used to pare down the debt of its parent entity, Vedanta Resources.

Before the pandemic, Vedanta merged Cairn Energy into its fold, and 25000 mutual fund assets from crain energy wiped out. Earlier, the group had also merged Sesa Goa and other companies under the banner of “better management.” Now, decades later, the narrative has flipped again, with demergers being pitched as the new path to efficiency.

The irony is hard to miss. If the Agarwal family not hold controlling stakes, Hindustan Zink
(HZL) could arguably command valuations north of ₹2,000 per share.
Surprisingly directors remain silent, even as questions linger about who hedged silver during one of the strongest bull runs in recent memory.

I have investment in this Stock and current position is 10% of portfolio .

Chandragupta · January 4, 2026, 10:06am

True. From a cash rich, debt free company, Hindustan Zinc has gone to become a Rs.1000-crore per annum interest paying company.

They are also paying a Rs.1000-odd crore “brand fee” to parent Vedanta. “Branded” zinc, anyone?

The management talks about splitting the company into three – zinc, lead & silver – under the guise of “value creation”. But how can this be achieved when the ore is common? Zinc-lead-silver mostly occur together in the earth’s crust. From mining through refining, the processes such as flotation separation, concentrate handling, byproduct recovery are interconnected. Mining infrastructure such as power, water, logistics, concentrators, etc. are all common. How can mining be separated into three different companies even if end-products are three? If anything, a 3-way split will create a maze of interconnected, related party transactions vulnerable to manipulation. There is no global precedent for this. Splitting also increases inefficiencies by duplicating corporate overheads. An integrated company has a natural hedge, as it offsets cyclicality of one commodity with another, and should command higher valuation than its individual parts, not lower.

When Vedanta took over Hindustan Zinc, the silver content in the ore was more than 200 ppm (200 grams per metric tonne of ore mined). Over the years, the silver content has progressively reduced. It was 215 ppm in 2008, had reduced to 180 ppm by 2011 and by 2025, it has fallen to just 90 ppm. Quality of ore can of course deteriorate over time, but then… who knows?

(Source: 2011 Annual Report)

I was also surprised to see their margins don’t show the volatility that one would expect from a commodity company.

Having said this, if one is ready to ignore all of this (and more), there are several positive triggers. Beyond the current bull run in silver, HZL is diversifying into areas such as tungsten, potash, rare earth, fertilizer etc. A goldmine (or should we say silvermine?) but for the promoter.

(Disc.: No positions)

Aluwalia · January 5, 2026, 10:25am

By having all the RM for a critical alloy, why can’t they go for criritcal alloy production

Midhunjoe · January 19, 2026, 11:30am

HZL Results are out. Company clocked excellent top line and bottom line primarily due to buoyant silver price despite silver production largely flattish. Excellent reduction is COP too.

naveenb · January 20, 2026, 3:16am

Hindzinc is very undervalued if Silver cycle plays out. Hedging negative impact for both Silver and Zinc will minimize in Q1 27. It has dragged the sales and margin in Q3 as well. 35% of silver and 22% of Zinc was hedged which has dragged the sales and margins. Both will shift to 10%-20% in FY27.Number guidance is on 10%. PeriodProduction (Est/Act)Hedged QtyHedged %Realization Impact**H1 FY26 (Act)**293 tons~120 tons~41%Locked early gains (Q1 filing cited 119.5t forward).Q3 FY26 (Act)158 tons55 tons35%Missed Opportunity: 35% sold at ~$37 while Spot hit $60+.**Q4 FY26 (Est)**200 tons (User Est)68 tons34%Drag: 34% locked at ~$39 vs Spot $93.FY26 Total~651 tons~243 tons~37%.

Similarly for Zinc it is >20% in FY26. As we roll into April 2026 (FY27), the hedge book drops from 37% to 7.5%. PeriodProduction (Proj)Hedged QtyOpen / UnhedgedOpen %FY27750 tons56 tons694 tons~92.5%. Based on this revised calc, we are sitting at ,ultibagged in a large cap. Debt free, dividend etc. will bring FII in. Few pointers mentioned below:

ranvir · January 24, 2026, 2:21pm

Hindustan Zinc -

Q3 FY 26 results and Concall highlights -

Revenues - 10922 vs 8556 cr, up 27 pc

EBITDA - 6005 vs 4458 cr, up 36 pc ( margins @ 55 vs 52 pc )

PAT - 3879 vs 2647 cr, up 44 pc

Company’s mkt share in India’s domestic Zinc mkt @ 77 pc

Silver’s contribution to net profits stands @ 44 pc

In Q3, CoP fell to $ 940 / MT ( excluding royalty ) - down 10 pc YoY and 5 pc QoQ - quite an achievement. Continue to remain among the lowest cost Zinc producers

Mined metal output @ 276 KT in Q3, up 7 pc QoQ and 4 pc YoY

Refined metal output @ 270 KT in Q3, up 9 pc QoQ and 4 pc YoY

Silver production in Q3 @ 158 MT, up 10 pc QoQ ( vs 144 MTs in Q2 )

Company is India’s only integrated producer of Lead, Zinc and Silver. Also the only producer of Zinc alloys

Company was the successful bidder for a Tungsten mine in AP. Have also received LoI for Potash and REE ( rare earth elements ) mines in Rajasthan and UP respectively

Avg Zinc and Lead prices / Ton in Q3 stood @ $ 3165 and $ 1970. Current ( 24 Jan ) Zinc and Lead prices / Ton are @ $ 3280 and $ 2035

In Q3, company’s avg selling price for Silver stood @ $ 54/ounce. Current Silver prices are @ $ 103 / ounce !!!

Company’s annual silver production in FY 04 was @ 35 MT / yr, in FY 12 was @ 205 MT / yr, in FY 25 was @ 687 MT /yr - up 20 times ( aprox ) in 2 decades. Company is now the world’s 4th largest Silver miner

Company has commissioned expanded smelter facilities ( post expansion ) @ Darbaria and Chanderiaya in Q2 and Q3

Hot acid leaching plant @ Darbaria for additional recovery of 27 MTPA of Silver and 6 KTPA of Lead is expected to be commissioned by Mar 26

510 KTPA - DAP fertiliser plant ( DAP is mainly imported into India ) is expected to be commissioned by June 26. It ll be producing DAP fertiliser and NPK nutrients. The fertiliser plant that the company is expected to commission next FY has the potential to do peak EBITDA of 450 - 500 cr / yr

Notes from previous concalls -

In medium to long term, company aspires to increase its metal production to 1.5 MMT / yr ( initially ) and then to 2 MMT ( eventually ). Also intend to increase their reserves to 2X of current levels by indulging in domestic and international exploration activities. This would entail a lot of CAPEX - should be doable with internal accruals as the company produces a lot of cash / yr. Also intend to expand Silver production to 1500 MT / yr over medium to long term

Company has set up a dedicated subsidiary - Hindmetal Exploration Services Pvt Ltd - to continuously focus on exploring, discovering, developing and tapping mineral resources. The subsidiary has interest in exploration of all minerals across the globe by implementing best in class technologies and practices

Company’s smelting capacities -

Zinc smelting capacity @ .913 MMT + .16 MMT ( recently commissioned @ Derbari ) + .21 MMT ( recently commissioned @ Chanderia )

Lead smelting capacity @ .210 MMT

Silver refining capacity @ 800 MT

Have announced a capex of 12000 cr for setting up of 250 KTPA zinc smelter @ Debari. Have already started work on ground ( yet to finalise the technology to be used in the Smelter ). This should take 2.5 - 3 yrs before it goes commercial

Percentage of power used by the company that came from renewable sources in Q2 stood @ 19 pc. Aim to exit FY 26 with renewable share of power consumption @ 25 pc

Captive power generation capacity @ 625 MW. Among India’s largest producer of Wind Power with a generation capacity of 274 MW - spread across 5 states Company has entered into a 25 yr long renewable power purchase agreement with Serentica ltd - this would @ a fixed flat rate of energy buying without any inflation and would help the company move towards its stated goal of reducing costs to $ 1000 / Ton

Notes from Q3 concall -

Have announced Capex for India’s first Zinc Tailings reprocessing plant. It will be transforming waste into valuable resources while contributing significantly to circular economy. Key highlights -

Feed capacity: 10 Mtpa

Total approved investment: ₹ 3,823 crore

Target completion: 4QFY28

Current cash on books @ 9340 cr

Q3 volume performance ( production of refined metal )-

Zinc - 221 vs 259 KT

Lead - 49 vs 55 KT

Silver - 158 vs 160 MT

Q3 Segmental revenues -

Zinc - 6485 vs 5628 cr, up 15 pc

Lead - 1036 vs 1008 cr, up 3 pc

Silver - 2676 vs 1465 cr, up 93 pc

Others - 873 vs 513 cr, up 53 pc

Ballpark estimate - If avg selling price for silver in Q4 stays @ $ 84 / ounce ( vs $ 54 in Q3 ) - additional EBITDA for the company over Q3 shall be around 1400 cr. That would amount to EBITDA within striking distance of 7500 cr ( not even accounting for higher Zinc and Lead prices currently prevailing in Q4 )

Electrification and Renewable energy themes are a tailwind for Zinc ( used in Galvanised steel for Solar panels + Wind energy Infra ) + Silver ( widely used in Electronics, Batteries, Solar panel coatings )

State taxes / Royalties paid to the state of Rajasthan in 9Ms FY 26 stood @ 4000 cr

In domestic Lead mkt, company’s mkt share is > 90 pc !!!

Both silver and lead continue to trade a premium to LME prices ( in the domestic mkt ) - another tailwind for the company

Continue to hedge 15-20 pc of their total metals output ( holds for all three metals ). Will continue with the same for FY 27

FY 26 Silver’s hedging price is $ 39 / ounce, for Zinc is around $ 2900 / Ton. Thee prices for FY 27 are $ 68 / ounce for silver and aprox $ 3100 / Ton for Zinc respectively

Have spent $ 180 million as growth Capex in FY 26. Will be spending around $ 300 million / yr wef next FY ( talking about growth capex ). In addition, will be spending $ 400 million maintenance capex / yr

Full FY 26 Silver production should be around 680 MT, Have sold 450 MTs in first 9Ms. That means a Q4 sales figure of around 230 MTs of Silver !!! This is expected to incline their Q4 PAT even further

The share of renewable energy as a percentage of company’s total energy consumption for FY 27 should be around 40 pc and around 70 pc for FY 28. This would eventually lead to 300 cr / yr kind of cost savings vs FY 26 ( where the company shall exit with renewable power share of 25 pc or so )

Zinc tailings are fine-grained, solid waste materials left after extracting zinc from ore, composed mainly of silica, alumina, iron oxides, and other minerals, posing environmental risks but also holding potential for reuse in construction (roads, concrete) or reprocessing to recover residual metals, turning waste into resources

Company also sold 20 Tons of Lead - Silver concentrate in Q3 - which helped profitability ( as they got good prices for the same )

Disc: core holding, inclined to add on dips, not SEBI registered, not a buy/sell recommendation, posted only for educational purposes

SAM2003 · January 30, 2026, 9:58am

“The promoter of this company has consistently demonstrated conduct that stands among the most unethical in Indian corporate history. Such behavior erodes trust, damages shareholder value, and undermines the very principles of fair governance. No matter how powerful one may appear, life has a way of delivering lessons—reminding us that integrity and accountability are the true measures of success.”

Abha · April 24, 2026, 1:14pm

HZL - Good set of Results for FY26

Record net profit of Rs 13,832 crore, up 34% YoY while silver prices went from $120/oz in January 2026 to approx. $75/oz in March 2026 or an average of $85-86/oz for Q4
Silver production of 627 tonnes, contributing 45% overall
Zinc COP is at $ 903 per tonne during Q4, better by 9% YoY and 4% QoQ on account of lower power cost driven by higher domestic coal usage and soft coal prices
Strong Balance sheet management - As on March 31, 2026, the Company has investments and cash/cash equivalents of Rs 13,846 crore investments whereas Total borrowings outstanding as on March 31, 2026, is at Rs 8,252 crore.
Strong free cash flow of Rs 13,337 crores
Zinc Price outlook for FY27- little less than $2900/mt as compared to $3064/mt in FY26

https://www.moneycontrol.com/news/business/earnings/hindustan-zinc-q4-results-net-profit-rises-68-to-rs-4-997-crore-firm-declares-rs-11-interim-dividend-13898602.html

ranvir · April 25, 2026, 10:58am

Hind Zinc -

Q4 and FY 26 results and concall highlights -

Q4 outcomes -

Revenues - 13544 cr, up 49 pc

EBITDA - 7747 cr, up 61 pc

PAT - 5033 cr, up 68 pc

Mined metal production @ 315 KT ( or 0.315 MT ), up 2 pc YoY

Refined metal production @ 282 KT ( or 0.282 MT ), up 5 pc YoY

Qtly Zinc CoP @ $ 903 / MT ( excluding royalty ) - down 9 pc YoY

FY 26 outcomes -

Revenues - 40844 cr, up 20 pc

EBITDA - 22162 cr, up 27 pc

PAT - 13832 cr, up 34 pc

Mined metal production @ 1114 KT - highest ever

Refined metal production @ 1048 KT - second highest annual production

Annual Zinc CoP @ $ 959 / MT ( excluding royalty ) - down 9 pc YoY

Notes from previous concalls -

Company has commissioned expanded smelter facilities ( post expansion ) @ Derbari and Chanderia in Q2 and Q3

Hot acid leaching plant @ Darbaria for additional recovery of 27 MTPA of Silver and 6 KTPA of Lead is expected to be commissioned by Mar 26

510 KTPA - DAP fertiliser plant ( DAP is mainly imported into India ) is expected to be commissioned by June 26. It ll be producing DAP fertiliser and NPK nutrients. The fertiliser plant that the company is expected to commission next FY has the potential to do peak EBITDA of 450 - 500 cr / yr

Company has commissioned expanded smelter facilities ( post expansion ) @ Derbari and Chanderia in Q2 and Q3 Hot acid leaching plant @ Darbaria for additional recovery of 27 MTPA of Silver and 6 KTPA of Lead is expected to be commissioned by Mar 26 510 KTPA - DAP fertiliser plant ( DAP is mainly imported into India ) is expected to be commissioned by June 26. It ll be producing DAP fertiliser and NPK nutrients. The fertiliser plant that the company is expected to commission next FY has the potential to do peak EBITDA of 450 - 500 cr / yr

Company has set up a dedicated subsidiary - Hindmetal Exploration Services Pvt Ltd - to continuously focus on exploring, discovering, developing and tapping mineral resources. The subsidiary has interest in exploration of all minerals across the globe by implementing best in class technologies and practices

Company’s smelting capacities -

Zinc smelting capacity @ .913 MMT + .16 MMT ( recently commissioned @ Derbari ) + .21 MMT ( recently commissioned @ Chanderia )

Lead smelting capacity @ .210 MMT

Silver refining capacity @ 800 MT

Have announced a capex of 12000 cr for setting up of 250 KTPA zinc smelter @ Debari ( next round of expansion ). Have already started work on ground ( yet to finalise the technology to be used in the Smelter ). This should take 2.5 - 3 yrs before it goes commercial

Have announced Capex for India’s first Zinc Tailings reprocessing plant. It will be transforming waste into valuable resources while contributing significantly to circular economy

Key highlights -

Feed capacity: 10 MTPA

Total approved investment: ₹ 3,823 crore

Target completion: 4QFY28

Zinc tailings are fine-grained, solid waste materials left after extracting zinc from ore, composed mainly of silica, alumina, iron oxides, and other minerals, posing environmental risks but also holding potential for reuse in construction (roads, concrete) or reprocessing to recover residual metals, turning waste into resources

Electrification and Renewable energy themes are a tailwind for Zinc ( used in Galvanised steel for Solar panels + Wind energy Infra ) + Silver ( widely used in Electronics, Batteries, Solar panel coatings )

In domestic Lead mkt, company’s mkt share is > 90 pc. Their domestic mkt share in Zinc is around 75 pc

Continue to hedge 15-20 pc of their total metals output ( holds for all three metals )

Have spent $ 180 million as growth Capex in FY 26. Will be spending around $ 300 million / yr wef next FY ( talking about growth capex ). In addition, will be spending $ 400 million maintenance capex / yr

The share of renewable energy as a percentage of company’s total energy consumption for FY 27 should be around 30 pc and around 70 pc for FY 28. This would eventually lead to 300 cr / yr kind of cost savings vs FY 26 ( where the company shall exit with renewable power share of 20 pc or so )

Notes from Q4 concall -

Additional 400 KT and 200 KT smelters for Zinc and Lead are in conceptualisation stages - to be set up at existing locations. This should take the total refining capacity up to 2000 KT { from 1129 KT - currently ( 920 KT of Zinc + 210 KT of Lead ) + Debari Capex of 250 KT }

Also aim to scale up refined Silver production / yr to 1500 TPA from 800 TPA ( at present )

Aim to indulge in aggressive exploration activities ( @ Zewar and Rajpura Dariba clusters ) to sustain mine life > 25 yrs at all times

Cash on books @ 13846 cr

Segmental revenues for Q4 -

Zinc - 6997 cr, up 19 pc

Lead - 1153 cr, up 12 pc

Silver - 4032 cr, up 139 pc

Others - 1362 cr, up 164 pc

Avg metal selling prices for Q4 -

Zinc - $ 3241 / MT, up 14 pc

Lead - $1931 / MT, down 2 pc

Silver - $ 84 / Ounce, up 165 pc

A $ 100 / ton increment in Zinc prices inclines company’s annual EBITDA by 675 cr

A $ 100 / ton increment in Lead prices inclines company’s annual EBITDA by 125 cr

A $ 1 / ounce increment in Silver prices inclines company’s annual EBITDA by aprox 175 cr

As of today - Zinc, Lead and Silver prices are trading @ $ 3476, $ 1965 and $ 76

Guiding for 1150 KT of refined Zinc + Lead output for FY 27 ( vs 1114 KT in FY 26 )

Guiding for 680 Tons of refined Silver output for FY 27 ( vs 627 Tons in FY 26 )

Guiding for Zinc’s COP @ $ 975-1000 / Ton for FY 27 - looking at current geopolitical tensions + inflationary environment in general

Paid royalties worth aprox 6000 cr to Rajasthan Govt for FY 26

Hedging prices ( for aprox 10 pc of company’s output ) for Zinc and Silver for FY 27 stands @ $ 3225 / Ton and $ 59 / ounce

Theoretically - if Zinc prices fall below $ 2900-3000 / Ton and Silver remains above $ 60/ounce, it would be more profitable for the company to switch over to Lead + Silver production combo ( thereby increasing Silver production to above 700 tons )

Have declared an interim dividend of Rs 11 / share - resulting in a cash outgo of aprox 4000 cr

Royalties / Brand fee / Consultancy fee paid to Vedanta for FY 26 and FY 25 stood @ aprox 1300 and 1120 cr respectively

Should be able to start manufacturing Phosphoric acid by Q2. Should be able to commence making DAP by end of Q4 FY 27

Sales and EBITDA from Lead concentrate ( pre refined lead metal ) sales for Q4 were around 500 cr and 300 cr respectively

Once their 250 KT smelter @ Debari goes live ( towards the end of FY 28 ), their annual Silver output would also move towards 800 tons

Sulphuric acid is a significant by-product of zinc smelting/refining and Hindustan Zinc is actually one of India’s largest producers of sulphuric acid. Company typically produces 1.3-1.4 million tons of H2SO4 / yr. Their customers include - Coromandel Intl, Deepak Fertilizers, Paradeep Phosphates etc. This is a good position to be in - given the Sulphuric acid shortages caused by Iran war

Disc: holding, core investment position, not SEBI registered, posed only for educational purposes, not a buy/sell recommendation, biased

satishwe · April 27, 2026, 5:26pm

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