Hindustan Zinc Q1 Results: Vedanta arm reports 4.7% drop in net profit to ₹2,234 crore, revenue down 4.4% YoY

Mint

18-07-2025

Hindustan Zinc Q1 Results: Vedanta arm Hindustan Zinc on Friday reported a 4.7% year-on-year (YoY) fall in its consolidated net profit for the first quarter ended June 30, 2025 (FY26) at ₹ 2,234 crore. The company had reported a profit of ₹ 2,345 crore in the year-ago period. Sequentially, the consolidated net profit was down 25.6%.
Vedanta-owned zinc producer's consolidated revenue from operations stood at ₹ 7,771 crores during the quarter ended June from ₹ 8,130 crore in Q1FY25, a year-on-year fall of 4.4%. Sequentially, the revenue slipped 14.5% from ₹ 9,087 crore in Q4FY25.
The decline in revenue was attributed by the company to reduced volumes and decreased prices for zinc and lead commodities, although this was somewhat compensated by increased silver prices, a stronger dollar, and better by-product realisations.
In its filing to the exchange, the company reported an EBITDA of ₹ 3,860 crores, a decrease of 2% year-over-year, primarily due to reduced volumes and declining prices for zinc and lead, although this was somewhat balanced by rising silver prices, a stronger dollar, and reduced production costs. The company achieved an industry-leading EBITDA margin of approximately 50%.
Additionally, the company reported that it achieved its lowest first-quarter zinc cost of production since the transition to underground operations, recorded at US$ 1,010 per tonne, reflecting a 9% year-over-year improvement due to enhanced metal grades, increased usage of domestic coal and renewable energy, higher revenues from by-products, and reduced input commodity prices, with some reduction in volume offsetting these gains.
As of June 30, 2025, the company maintained substantial gross investments and cash, along with cash equivalents totaling ₹ 9,340 crores invested in high-quality debt instruments. The total borrowings that remained outstanding on June 30, 2025, amounted to ₹ 13,524 crores.
"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.
In line with the rising zinc demand projected by 2030, the Board has approved the Phase-1 expansion project towards 2x growth, further strengthening our growth pipeline. Coupled with the addition of blocks of critical minerals and rare earth elements, we are strategically poised to transform into a true multi-metal powerhouse, unlocking sustained value for all our stakeholders," said Arun Misra, Chief Executive Officer (CEO) of the company.
The company's board of directors declared an interim dividend of ₹ 10 per equity share on June 11, 2025, totaling ₹ 4,225 Crore, with the record date set for June 17, 2025, for the financial year 2025-26.
'Staying true to our commitment to create long-term value for our shareholders, the Board declared an interim dividend of ₹ 10 per share during the quarter, reinforcing our track record of consistent returns. Amidst continued global uncertainties, our healthy balance sheet, structurally leaner cost base, and robust growth project pipeline position us well to deliver sustainable long-term value,' said Sandeep Modi, Chief Financial Officer (CFO) of the company.
Hindustan Zinc share price today opened at ₹ 440.65 apiece on the BSE, the stock touched an intraday high of ₹ 441.45 apiece, and an intraday low of ₹ 431.45 per share.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Hindustan Zinc share prices are trading with marginal cuts post the result announcement, Overall the prices have struggled in the last 4 sessions to cross the 20DEMA, Going ahead positive momentum would trigger only when prices surpass this key support around ₹ 445 , until then prices could dip towards recent swing low of ₹ 415.