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Russian (RU) Hindustan Zinc shares surged 3.2% to Rs 459.5 in Monday’s trade on the BSE after the company reported a 47% year-on-year (YoY) rise in consolidated net profit for the March 2025 quarter to Rs 3,003 crore. The profit growth was supported by strong metal prices, robust volumes, and lower production costs.
Meanwhile, revenue for the quarter rose 20% YoY to a record Rs 9,087 crore. EBITDA for Q4 rose 32% YoY to Rs 4,816 crore, with margins improving by 500 basis points to 53%.
On the operational front, mined metal production hit a record 1,095 kilotonnes in FY25, while refined metal production (zinc + lead) rose 2% YoY to 1,052 kilotonnes. However, silver production dipped 8% YoY to 687 tonnes.
"We have delivered record mined and refined metal production this year, driven by operational excellence, AI integration, and automation. These advances not only helped us cut costs but also improved productivity across the board," said Arun Misra, CEO, Hindustan Zinc.
The company achieved its lowest zinc cost of production in 16 quarters at $994/tonne in Q4, down 5% YoY. For the full year, zinc cost of production dropped 6% YoY to a four-year low of $1,052/tonne, aided by better grades, higher domestic coal usage, and operational efficiencies.
"FY25 marks another milestone in our journey of financial excellence. We reported our best-ever Q4 profit and achieved the second-highest revenue and EBITDA for the full year," said Sandeep Modi, CFO, Hindustan Zinc.
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"Hindustan Zinc (HZ) reported a better-than-expected Q4FY25 EBITDA of Rs 47.8 billion, up ~7% quarter-on-quarter (QoQ) (versus our estimate of Rs 44.7 billion), driven by a lower refined zinc cost of production (CoP). The higher volume and lower CoP offset the impact of lower zinc prices. Refined zinc CoP (excluding royalty) decreased by 5% QoQ to $994/tonne, marking a 16-quarter low," Nuvama said.
"However, we are lowering our FY26E and FY27E EBITDA estimates by 5.4% and 3.7%, respectively, to reflect lower expected zinc-lead and silver volume growth. We now project a 9% EBITDA compound annual growth rate (CAGR) over FY25–27E, supported by higher volumes and lower CoP," it added.
Expansion Plans
Meanwhile, Vedanta Group firm Hindustan Zinc Ltd (HZL) plans to foray into potash mining and is eyeing a block in Rajasthan, which also has the potential for lithium reserves, a top company official said.
India heavily relies on potash imports, primarily from Russia, Canada, Belarus, and Israel, and has been exploring ways to reduce its dependence.
The company also plans to expand beyond base metals — zinc and lead — and precious metal silver, into other critical minerals of strategic interest.
Hindustan Zinc was recently declared the preferred bidder for the Dugocha gold block in Rajasthan, expanding its portfolio of precious metals.
"So all the critical mineral blocks, as I said, we have got gold... we have got a tungsten block. Hindustan Zinc will expand beyond zinc, lead, and silver," said CEO Arun Misra in an interview with PTI.
"We will expand into all critical minerals of strategic interest to us, including potash. Potash is available in Rajasthan, and there are also chances of lithium association there. We will look into that," he added.
Hindustan Zinc was also awarded the Balepalyam Tungsten Block in Andhra Pradesh.
Misra said the company plans to participate actively in mineral block auctions across the country. Its subsidiary, Hindmetal Exploration Services Pvt Ltd — focused on strategic exploration, particularly in critical minerals — is leading this initiative.
"I am sure they will become the biggest private explorer in India," Misra added.
At 11:23 am, the stock was trading 2% higher at Rs 454 on the BSE. The stock has gained just 2% year-to-date but has surged 41% over the past three years.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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