Hindustan Zinc Q1 Result: Vedanta Subsidiary’s Profit Falls 4% YoY To Rs 2,234 Cr, Silver Segment Stays Strong

Hindustan Zinc Q1 Result: Vedanta subsidiary, Hindustan Zinc, on Friday, reported a 4% year-on-year decline in its net consolidated profit during the June quarter of the financial year 2025-26. The company also reported a decline in its revenue under the silver, zinc, lead and other.

Hindustan Zinc shares ended 0.33% lower at Rs 435.6 per share on BSE on Friday. The stock had touched an intraday high mark of Rs 441.45 per share, but lost momentum to close with losses.

Hindustan Zinc Q1 Result Highlights

Hindustan Zinc's net profit for the period declined from Rs 2,345 crore to Rs 2,234 crore during the quarter under review. Whereas, its consolidated revenue from operations fell to Rs 7,591 crore from Rs 7,893 crore.

Hindustan Zinc's segment-wise revenue in Zinc, Lead, others and Silver metal declined to Rs 6,116 crore and Rs 1,426 crore. Revenue from wind energy increased marginally to Rs 49 from Rs 45 crore reported in the year-ago period.

The company's operating margins remained unchanged at 38%, and debt to equity ratio increased to 1.19%. The Udaipur-headquartered metal and mining company recorded "EBITDA of Rs 3,860 crores, down 2% YoY driven by lower volumes and lower zinc and lead prices partly offset by higher silver prices, stronger dollar, and lower cost of production. The company recorded an industry leading EBITDA margin of c.50%."

"Delivering our highest-ever first quarter mined metal production at the lowest-ever zinc cost of production reflects our relentless focus on operational efficiencies and cost leadership. 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 Mishra, Chief Executive Officer of Hindustan Zinc.

The company also claimed of trimming its Zinc cost of production during the quarter under review. The total cost stood at $1,010 per tonne, better 9% annually driven by improved metal grades, better domestic coal and renewable energy consumption, higher by-product realisations, and softened input commodity prices partly offset by lower volume.

Hindustan Zinc Q1 Project Update

The company's 160 Ktpa roaster at Debari will be commissioned in mid of the second quarter of financial year 2025-26. The cellhouse debottlenecking of Dariba Smelting Complex and Chanderia Lead Zinc Smelter is also expected to be completed in the second quarter. Hindustan Zinc's fertiliser plant is under progress and is expected to be finished by the first quarter of FY27.

The company has investments and cash equivalents of Rs 9,340 crore high quality debt instruments with a total borrowings of outstanding at Rs 13,524 crores.