Hindustan Zinc posted record FY26 consolidated revenue of ₹40,000 crore and EBITDA of ₹20,000 crore. The company plans to double its production capacity and diversify into critical minerals like potash and rare earths.
Hindustan Zinc Sees Record FY26 Performance, Charts Ambitious Growth Path
Hindustan Zinc achieved a record consolidated revenue of ₹40,000 crore and EBITDA of ₹20,000 crore for the fiscal year 2026. The company reported a net profit of ₹13,832 crore, with an Earnings Per Share (EPS) of ₹33. The zinc cost of production stood at $959 per tonne.
Reader Takeaway: Record financials and strategic diversification into critical minerals signal strong growth potential.
What just happened
Hindustan Zinc announced its financial results for FY26, showcasing significant achievements. The company reported its highest-ever mined metal production exceeding 1.1 million tonnes and a second-highest refined metal production of about 1.05 million tonnes. Notably, it achieved its lowest zinc cost of production in five years at $959 per tonne, excluding royalty. Silver production reached 627 tonnes.
Why this matters
These strong financial and operational results demonstrate the company's execution capabilities. The planned capacity expansion and diversification into critical minerals position Hindustan Zinc for future growth, aligning with national priorities and potentially enhancing shareholder value through a multi-metal strategy.
The backstory
The company has consistently focused on operational efficiency and cost management. Recent renewable energy agreements, such as with Serentica, are contributing to cost leadership and sustainability goals. This year's results reflect a culmination of these efforts.
What changes now
Hindustan Zinc has laid out a clear five-year roadmap to double its production capacity from 1.1 million tonnes to 2 million tonnes. A capital expenditure program of ₹40,000 crore to ₹50,000 crore is planned, with an initial ₹17,000 crore already approved for Phase 1. This phase includes a new integrated zinc smelter at Debari. The company is also actively diversifying into critical minerals like potash, tungsten, and rare earth minerals, aiming to become a multi-metal producer.
Risks to watch
While the outlook is positive, investors should be mindful of commodity price volatility, which can impact earnings from silver and zinc. The successful implementation of the substantial capital expenditure plan and the realization of potential from new mineral ventures will be crucial watch points.
Peer comparison
(No peer comparison data provided in the filing)
Context metrics (time-bound)
In FY26, Hindustan Zinc's consolidated revenue was ₹40,000 crore, EBITDA was ₹20,000 crore, and net profit was ₹13,832 crore. Mined metal production exceeded 1.1 million tonnes, and refined metal production was approximately 1.05 million tonnes. Zinc cost of production was $959 per tonne.
What to track next
Investors should closely monitor the progress of the capacity expansion projects, the company's entry and development in the critical minerals segment, and its capital allocation strategy. Updates on the integrated zinc smelter at Debari and developments in potash, tungsten, and rare earth extraction will be key.