Hindustan Zinc reports its highest-ever Q2 and H1 mined metal production, alongside a 5-year low in zinc production costs. Q2 FY26 EBITDA reached INR 4,467 crores, with a profit after tax of INR 2,649 crores. The company is capitalizing on high silver prices and is expanding its silver production capacity, targeting 1,500 tons through ongoing initiatives. A revised refined metal guidance is set at 1,075 +/- 10 thousand tons per annum.
Exceptional Production Performance
Hindustan Zinc has achieved record-breaking mined metal production for both the second quarter and the first half of FY26. The company also recorded a five-year low in zinc cost of production for the same periods, significantly boosting profitability.
Financial Highlights
The company reported its highest-ever second-quarter EBITDA of INR 4,467 crores and a profit after tax of INR 2,649 crores. The zinc cost of production for the quarter was at USD 994 per ton, a 7% year-over-year improvement.
For the first half of the year, the cost of production was US$1,002 per ton, an improvement of 8% year-on-year.
Silver Production and Expansion
With silver prices reaching an all-time high, Hindustan Zinc is uniquely positioned to benefit, with approximately 40% of its profits derived from silver. The company aims to increase silver production from the current 700 tons to 1,500 tons.
The FY26 silver production guidance is set at 680 tons plus/minus 10 tons per annum.
Growth Projects
Key growth projects are progressing as planned, including the commissioning of a 160,000 tons per annum roaster at Debari and the debottlenecking of cell houses at Dariba Smelting Complex.
Hindustan Zinc is moving forward with a 250,000 tons per annum integrated metal capacity expansion project, expected to be completed by Q2 FY’29, and India’s first 10 million ton per annum zinc tailing reprocessing plant, slated for completion by Q4 FY28.
Sustainability Initiatives
Hindustan Zinc became the first Indian company to join the International Council on Mining and Metals (ICMM). The company is also focused on decarbonization and has signed MOUs for deploying EV trucks and expanding its LNG truck fleet.
Revised Guidance
The refined metal production guidance for FY 2026 is revised to 1,075 +/- 10 thousand tons per annum. The full-year cost guidance is revised down to around $1,000 per ton.
Source: BSE
