Hindustan Zinc Beats Estimates with Record Output, Low Costs
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Hindustan Zinc Beats Estimates with Record Output, Low Costs

Hindustan Zinc (BSE: 500188; NSE: HINDZINC) posted a net profit of Rs 2,234 crore for Q1 FY26, beating consensus estimates. The company achieved its highest-ever first quarter mined metal output at 265 kt and delivered a record performance from Hindustan Zinc Alloys, with value-added products contributing around 24 per cent of total output.
 The zinc cost of production hit a first-quarter low of US$1,010/MT, down 9 per cent YoY, supporting a strong EBITDA margin of around 50 per cent. The silver segment contributed about 41 per cent to overall profitability, benefiting from all-time high prices.
 
The quarter also saw Hindustan Zinc secure two critical mineral blocks—Potash & Halite in Rajasthan and Rare Earth Elements in Uttar Pradesh. Renewable energy usage rose to 19 per cent, keeping the company on track to reach 70 per cent by FY28.
 
The Board has approved the first phase of a Rs 12,000 crore expansion plan to double capacity, including a new 250 KTPA integrated smelting complex and expanded mines and mills. An interim dividend of Rs 10 per share (Rs 4,225 crore) was also declared.
 
The company retains a CRISIL AAA/Stable credit rating, reflecting its strong balance sheet and long-term growth outlook.

Financial Summary
(In INR Crores or as stated)

Hindustan Zinc (BSE: 500188; NSE: HINDZINC) posted a net profit of Rs 2,234 crore for Q1 FY26, beating consensus estimates. The company achieved its highest-ever first quarter mined metal output at 265 kt and delivered a record performance from Hindustan Zinc Alloys, with value-added products contributing around 24 per cent of total output. The zinc cost of production hit a first-quarter low of US$1,010/MT, down 9 per cent YoY, supporting a strong EBITDA margin of around 50 per cent. The silver segment contributed about 41 per cent to overall profitability, benefiting from all-time high prices. The quarter also saw Hindustan Zinc secure two critical mineral blocks—Potash & Halite in Rajasthan and Rare Earth Elements in Uttar Pradesh. Renewable energy usage rose to 19 per cent, keeping the company on track to reach 70 per cent by FY28. The Board has approved the first phase of a Rs 12,000 crore expansion plan to double capacity, including a new 250 KTPA integrated smelting complex and expanded mines and mills. An interim dividend of Rs 10 per share (Rs 4,225 crore) was also declared. The company retains a CRISIL AAA/Stable credit rating, reflecting its strong balance sheet and long-term growth outlook.Financial Summary(In INR Crores or as stated)

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