Hindustan Zinc beats consensus, backed by all-time high silver prices and first quarter lowest cost of production

India based Hindustan Zinc Limited, a Vedanta Group company and the world’s largest integrated zinc producer, announced its financial results for the first quarter ended 30th June 2025 on 18th July 2025. The company registered its highest ever first quarter mined metal production of 265 KT.

Also, the company clocked record quarterly alloy production from subsidiary Hindustan Zinc Alloys (HZAPL), taking overall share of value-added products to c.24 per cent. The company registered the lowest ever first quarter zinc cost of production (COP)^ at US$1,010/MT, better 9 per cent YoY. The company delivered a profit, beating estimates to US$ 261 million with an industry leading EBITDA margin of c.50 per cent. Hindustan Zinc, amongst the top five silver producers globally, has witnessed continued significant contribution from the silver segment to profitability at c.41 per cent.

During the quarter, the company secured two critical mineral blocks, Potash in Rajasthan and Rare Earth Elements (REEs) in Uttar Pradesh. In the same period, the company’s renewable energy consumption increased to c. 19 per cent, on track to progressively achieve 70 per cent by FY28. Along with that, Hindustan Zinc’s Board approved the first phase of plans towards doubling production capacity with an investment of US$1.4 billion to set up a new 250 KTPA integrated smelting complex alongside similar expansion of mines & mills capacities. Historically, Hindustan Zinc has maintained investment grade rating 'AAA’ and recently received ratings reaffirmation at CRISIL AAA/Stable/CRISIL A1+.

Arun Misra, Chief Executive Officer, says: “Delivering our highest-ever first quarter mined metal production at the lowest-ever zinc cost of production reflects our relentless focus on operational efficiencies and cost leadership. We have further strengthened our growth pipeline with Board approved Phase-1 of plans towards doubling the production capacity. Coupled with the addition of critical minerals blocks and rare earth elements, we are poised to transform into a multi-metal powerhouse, unlocking sustained value for our stakeholders.”