Hindustan Zinc Q1 Profit at Rs 22.3 Billion, COP Hits Record Low
21 Jul 2025 CW Team
Hindustan Zinc Limited, India’s only and the world’s largest integrated zinc producer, announced its results for the quarter ended 30 June 2025, reporting its highest-ever first-quarter mined metal production at 265 KTPA. Hindustan Zinc Alloys (HZAPL) also achieved record quarterly output, raising the share of value-added products to approximately 24 per cent.
The company recorded its lowest-ever first-quarter zinc cost of production (COP) at US$ 1,010 per metric tonne—an improvement of 9 per cent year-on-year. It delivered a net profit of Rs 22.34 billion, beating estimates, and maintained an industry-leading EBITDA margin of around 50 per cent. Silver operations contributed approximately 41 per cent to overall profitability.
In the same period, Hindustan Zinc secured two key critical mineral blocks—Potash and Halite in Rajasthan, and Rare Earth Elements (REEs) in Uttar Pradesh—strengthening its strategic mineral portfolio. Renewable energy usage reached 19 per cent, with the company on track to meet its target of 70 per cent by FY28.
The Board approved Phase-1 of a major expansion plan, involving an investment of Rs 120 billion to double production capacity. This includes the establishment of a new 250 KTPA integrated smelting complex, along with expansion of mining and milling capacities.
Further reinforcing its strong shareholder returns, the company declared an interim dividend of Rs 10 per share, totalling Rs 42.25 billion for the quarter. Hindustan Zinc continues to hold a CRISIL AAA/Stable and CRISIL A1+ credit rating.
CEO Arun Misra stated, “Delivering our highest-ever Q1 mined metal output at the lowest zinc COP reflects our strong operational efficiency and cost leadership. The expansion and new mineral assets strategically position us to become a multi-metal powerhouse.”
CFO Sandeep Modi added, “Despite macroeconomic challenges, our lean cost base and robust project pipeline have supported consistent performance and strong shareholder value through stable margins and dividends.”