Hindustan Zinc (HZL) reported a record quarter and full year driven by higher production, improved cost structure, and commodity tailwinds. The company recorded a quarterly net profit of Rs 50.33 bn, up 68 per cent year on year, and a quarterly EBITDA of Rs 77.47 bn, up 61 per cent year on year, with an industry-leading EBITDA margin of 57 per cent. Quarterly revenue stood at Rs 135.44 bn, representing strong year-on-year growth and sequential improvement.

Operationally, HZL delivered the best-ever mined metal production of 315,000 t and record refined metal production of 282,000 t in the quarter, while silver output reached 176 t. For the full year, mined metal production totalled 1,114,000 t and refined metal production was 1,048,000 t. These output gains contributed materially to the company’s profitability and cash generation.

Cost performance improved with zinc cost of production excluding royalty at $903 per t in the quarter and $959 per t for the full year, both better by around nine per cent year on year. The improvement was attributed to higher domestic coal usage, lower power cost, higher by-product realisation and improved mined grades, which together supported margin expansion across the business.

Reserves and resources reached a record 468.6 million tons of ore with total metal R&R of 29.2 million tons and silver R&R of 24,200 t, underpinning more than 25 years of mine life at current rates. Balance sheet strength was reflected in cash and investments of Rs 138.46 bn and total borrowings of Rs 82.52 bn, with free cash flow before growth capex of Rs 133.37 bn for the year.

Looking ahead, the company provided guidance for FY27 with mined metal target of about 1,150,000 t and refined metal around 1,100,000 t, saleable silver around 680 t and zinc cost of production guidance of $975 to $1,000 per t. Growth capital expenditure guidance remains in the $500 to $600 million range as project activity continues to progress.