Hindustan Zinc Limited (HZL) is a globally significant player in the metals and mining industry, holding the title of the world's largest integrated producer of zinc. The company is a cornerstone of India's resource sector, operating as the country's sole integrated producer of zinc, lead, and silver. This unique position allows it to command a dominant c.77% market share in the domestic primary zinc market. HZL's operations are characterized by a portfolio of high-quality, low-cost assets, including the world's largest underground zinc mining operation at Rampura Agucha. This asset base is not only productive but also durable, with reserves and resources that support a mine life of over 25 years.

Beyond its core zinc and lead business, HZL has established itself as India's only primary silver producer and is ranked among the top 5 silver-producing mines globally. The company leverages its integrated model to maintain consistently high EBITDA margins, typically around 50%, and has earned a top-tier AAA credit rating from CRISIL. Committed to responsible growth, HZL is recognized for its exceptional ESG performance, ranking first in the metals and mining sector in the S&P Global Corporate Sustainability Assessment for three consecutive years. The company is strategically positioned to capitalize on future growth trends, including the global energy transition, by producing metals critical for renewable energy infrastructure and by diversifying into India's strategic critical minerals ecosystem. As of December 31, 2025, HZL is majority-owned by Vedanta Limited (61.84%), with the Government of India holding a significant stake (27.92%).

Official Website: http://www.hzlindia.com/

• Record 3QFY26 Performance (Quarter ended Dec 31, 2025)

• Revenue: Achieved a record ₹10,980 crore, marking a 28% increase Quarter-over-Quarter (QoQ) and a 27% increase Year-over-Year (YoY). This growth was driven by higher volumes and improved commodity prices.

• EBITDA: Reached its highest-ever level at ₹6,087 crore, up 36% QoQ and 34% YoY. The increase was primarily due to higher revenue, favorable exchange rates, and lower production costs.

• Profit After Tax (PAT): Set a new record at ₹3,916 crore, a significant 48% QoQ and 46% YoY increase.

• Earnings Per Share (EPS): Stood at ₹9.3 for the quarter.

• Cash Position: The company maintained a strong liquidity position with Cash & Cash Equivalents of ₹9,342 crore.

• Historic 9MFY26 Performance (Nine months ended Dec 31, 2025)

• Revenue: Recorded at ₹27,300 crore, a 9% increase YoY.

• EBITDA: Reached its highest-ever nine-month figure at ₹14,415 crore, up 14% YoY.

• Profit After Tax (PAT): Achieved a best-ever PAT of ₹8,799 crore, representing a 20% YoY growth.

• Earnings Per Share (EPS): Was ₹20.8 for the nine-month period.

• Shareholder Value Creation

• Returns: Delivered total shareholder returns of 35% in 9MFY26, which includes a dividend payout of ₹10 per share.

• Market Performance: The company's stock performance was robust, delivering 5 times the returns of the Nifty 100 index in 3QFY26. Its market capitalization grew from ₹204k crore to ₹259k crore during the quarter.

• Return Ratios: Achieved a record Return on Capital Employed (ROCE) of 79% and Return on Equity (ROE) of 86% in the 9-month period.

The company delivered a historically strong financial performance in both the third quarter and the first nine months of FY26, driven by record production volumes, favorable commodity prices, and effective cost management.

• Market Dominance in India

• HZL is India's only integrated producer of zinc and lead, giving it a significant structural advantage. It holds a commanding c.77% share of the domestic primary zinc market.

• It is also the country's only integrated and listed silver company, uniquely positioning it to benefit from rising silver prices.

• Cost Leadership

• The company is positioned among the lowest-cost zinc producers globally. In 3QFY26, it achieved a 5-year lowest quarterly zinc Cost of Production (COP) of $940/MT (excluding royalty), a 10% YoY and 5% QoQ improvement.

• This cost efficiency is driven by higher domestic coal usage, softened coal prices, higher by-product realization, and increased production volumes.

• World-Class, Long-Life Assets

• HZL operates the world's largest underground zinc mining operations at its Rampura Agucha mine.

• The company possesses the world's second-largest zinc reserves and resources, providing a mine life of over 25 years and ensuring long-term operational visibility and stability.

• Integrated Business Model

• The company's integrated operations, from mining to smelting and refining, allow for significant operational efficiencies, cost control, and value capture across the entire production chain.

HZL's unique combination of domestic market dominance, global cost leadership, long-life integrated assets, and a singular position in India's silver market provides a powerful and sustainable competitive advantage.

• Domestic (India) Outlook

• Strong Demand Drivers: Domestic zinc demand is strengthening, supported by consistently growing domestic steel production, which is projected to reach 300 million tonnes per annum (Mtpa) by 2030.

• Economic Momentum: India’s economic outlook remains robust, with a manufacturing PMI that consistently indicates sectoral expansion (57.4 in Dec-25). This is supported by positive consumer sentiment and strong demand.

• GDP Growth: India’s GDP is forecast to grow between 6.6% and 7.4% in FY26, indicating a healthy macroeconomic environment for industrial metals.

• Global Base Metals (Zinc & Lead) Outlook

• Price Resilience: Zinc and Lead prices are forecasted to remain resilient despite projections of a nominal market surplus. Zinc prices reached $3,351/MT and lead prices reached $2,059/MT during 3QFY26.

• Market Balance: Woodmac forecasts indicate a small surplus in the refined zinc market (63 kt in 2026) and the refined lead market (59 kt in 2026), suggesting a relatively balanced supply-demand dynamic that should support prices.

• Global Precious Metal (Silver) Outlook

• Price Surge: Silver prices surged to an all-time high of over $93/toz in January 2026, driven by supply constraints and strong demand. The average price for 3QFY26 was $54.7/toz, a 74% YoY increase.

• Demand Drivers: Demand is increasing from both industrial uses (solar panels, EVs, electronics) and investment purposes. Silver supply is projected to remain relatively flat, creating a supportive environment for prices.

The outlook is favorable, with strong domestic demand for zinc in India, resilient global base metal prices, and a bullish trend for silver driven by industrial and investment demand.

• Completed Projects

• Cell House Debottlenecking: A 21 Ktpa debottlenecking project was successfully commissioned, with the Dariba portion completed in 2QFY26 and the Chanderiya portion in 3QFY26.

• Projects Nearing Completion

• Hot Acid Leaching Plant (Dariba): This plant will use innovative technology to recover 27 MTPA of silver and 6 ktpa of lead from smelting waste. It is expected to be completed by 4QFY26.

• Fertilizer Plant (Chanderiya): A 510 Ktpa plant for producing DAP fertilizers is under construction to support agricultural needs and better utilize by-product sulphuric acid. Commissioning is expected by 1QFY27.

• Major Future Growth Projects

• Integrated Metal Capacity Expansion: A major expansion is underway to increase refined metal capacity from 1,129 Ktpa to 1,379 Ktpa and mined metal capacity from 1,180 Ktpa to 1,510 Ktpa.

• Total Investment: c.₹ 12,000 crore

• Target Completion: 2QFY29

• Zinc Tailings Reprocessing Plant: India's first plant of its kind, designed to transform waste into valuable resources and contribute to the circular economy.

• Feed Capacity: 10 Mtpa

• Total Investment: ₹ 3,823 crore

• Target Completion: 4QFY28

HZL has a well-defined project pipeline aimed at increasing production capacity, improving resource recovery, and diversifying its product portfolio, underpinning its long-term growth trajectory.

• Energy Transition Metals

• Zinc: The company is positioned to benefit from the green energy transition, as zinc is a critical component in protecting solar and wind power infrastructure from rust. Zinc batteries are also emerging as a viable technology for long-duration energy storage.

• Silver: Silver's unmatched conductive properties are in high demand for solar energy, electric vehicles, and nearly all electronic systems, making it essential for achieving a low-carbon economy.

• Critical Minerals Diversification

• Alignment with National Goals: HZL is actively participating in India's Critical Mineral Mission, which aims to reduce the country's import dependence for minerals vital to clean energy, electronics, and defense.

• New Mineral Blocks: The company has been declared a successful bidder for a Tungsten block in Andhra Pradesh and has received a Letter of Intent (LOI) for a Potash block in Rajasthan and a Rare Earth Elements (REEs) block in Uttar Pradesh.

The company is strategically leveraging the long-term, secular demand growth for zinc and silver in the energy transition while diversifying into critical minerals to create new revenue streams and align with national strategic priorities.

• Capital Expenditure (Capex)

• Integrated Metal Expansion: The company has approved a total investment of c.₹ 12,000 crore for its next phase of mined and refined metal capacity expansion, targeted for completion by 2QFY29.

• Tailings Reprocessing Plant: An investment of ₹ 3,823 crore has been approved for the new tailings plant, with a target completion of 4QFY28.

• Capacity and Utilization

• Record Production: In 3QFY26, the company achieved its highest-ever mined metal production (276 kt) and refined metal production (270 kt), indicating high utilization of its existing operational capacity.

• Expansion Targets: Ongoing projects are set to significantly increase capacity, with mined metal targeted to reach 1,510 Ktpa and refined metal 1,379 Ktpa.

HZL is deploying significant capital towards ambitious, long-term projects to expand its production capacity, with current operations running at high utilization levels to meet demand.

• Expand Mine Portfolio and Life

• Target to attain Reserve & Resource (R&R) metal of c.40 Mnt and acquire new potential mining areas through auctions.

• Increase Production Capacities

• Aim to achieve an underground mining and smelting capacity of 2 Mtpa.

• Plan to scale silver production to 1,500 MTPA.

• Strengthen Cost Leadership

• Maintain zinc cost of production below $1,000/MT through efficiency initiatives and increased scale.

• Increase the share of renewable energy in its power mix to 70%.

• Diversify Product Portfolio

• Scale capacities for minor metal recovery.

• Enhance the share of Value-Added Products (VAP) to 50%.

• Successfully commission the 510 ktpa Fertilizer plant.

• Expand the portfolio of critical minerals, including Potash, Tungsten, and REEs.

• Advance Sustainability Goals

• Commit to ambitious 2030 sustainability goals, including a 50% reduction in Scope 1 & 2 emissions, achieving net-zero waste to landfill, and a 50% reduction in freshwater consumption.

The company's future strategy is focused on a multi-pronged approach of expanding capacity, diversifying into new products and critical minerals, reinforcing cost leadership, and maintaining its commitment to sustainability.

• Industry-Leading Profitability

• In 3QFY26, the company achieved an EBITDA margin of 55%, an improvement of approximately 320 basis points QoQ and 270 basis points YoY.

• For the nine-month period (9MFY26), the EBITDA margin was approximately 53%, an improvement of 220 basis points YoY.

HZL continues to operate with exceptional, industry-leading margins, reflecting its strong pricing power, integrated model, and effective cost controls.

• Market Volatility

• The company's financial performance is inherently exposed to the behavior of financial and metals markets, including the London Metal Exchange (LME). Fluctuations in metal prices, interest rates, and currency exchange rates can materially impact results.

• Financial Sensitivities

• The company's annual EBITDA is highly sensitive to market variables. The approximate impact of changes is as follows:

• Zinc Price: A $100/MT change impacts EBITDA by ₹660-690 crore.

• Lead Price: A $100/MT change impacts EBITDA by ₹130-150 crore.

• Silver Price: A $1/toz change impacts EBITDA by ₹170-190 crore.

• INR/USD Exchange Rate: A ₹1 change impacts EBITDA by ₹190-220 crore.

• Zinc Cost of Production: A $25/MT change impacts EBITDA by ₹210-230 crore.

The primary risks stem from market-driven volatility in commodity prices and currency exchange rates, which have a direct and quantifiable impact on the company's profitability.

• Sustainability Leadership

• For the third consecutive year, HZL was ranked No. 1 in the Metals & Mining sector in the S&P Global Corporate Sustainability Assessment 2025, outperforming 235 global peers.

• The company achieved its highest-ever score of 90/100, significantly above the industry average of 33/100.

• ESG Initiatives

• During the quarter, the company flagged off 10 EV bulker trucks for its supply chain, organized an e-waste collection drive, and conducted workshops on human rights.

• Corporate Social Responsibility (CSR)

• HZL's CSR initiatives have benefited approximately 2.3 million lives across 2,362 villages through over 50 initiatives focused on education, health, women's empowerment, and sustainable livelihoods.

• Awards and Recognition

• The company received numerous awards in 3QFY26, including recognition for its Integrated Annual Report (ranked 6th globally), excellence in waste management, and for being one of India's Top Companies with Great Managers.

Beyond its strong operational and financial results, HZL continues to demonstrate leadership in sustainability, shareholder value creation, and corporate social responsibility.