Hindustan Zinc Limited held its Q1 FY27 earnings conference call on July 24, 2026, with the transcript filed with exchanges on July 28, 2026, pursuant to Regulation 30 of SEBI Listing Regulations.

Management Participants

The call featured CEO Arun Misra, CEO-designate Amarendu Prakash, CFO Amit Gupta, and Director of Investor Relations Raksha Jain.

Leadership Transition

The Board appointed Mr. Amarendu Prakash as CEO and Whole-Time Director effective August 1, 2026. Mr. Prakash has over 30 years of experience in the steel industry and previously served as Chairman and Managing Director of SAIL from 2023 to 2026. Mr. Arun Misra concluded his tenure, expressing confidence in the company's future under new leadership.

Operational Performance

  • Record Q1 mine metal production: 268,000 tons (highest ever first quarter for fifth consecutive year)
  • Refined metal production: 260,000 tons (up 4% year-on-year)
  • Silver production: 149 tons
  • Zinc cost of production (excluding royalty): $851 per ton (lowest since underground transition, down 16% YoY)
  • Production growth driven by better mine grades and benefits from the 160,000 tons per annum roaster
  • Output supported by debottlenecking at Chanderiya and Dariba despite planned maintenance at lead smelter

Financial Performance

  • Revenue from operations: ₹13,747 crores (up 77% YoY, highest ever quarterly revenue)
  • EBITDA: ₹8,074 crores (up 109% YoY, crossing ₹8,000 crores milestone for first time)
  • EBITDA margin: 59% (industry-leading)
  • Net profit: ₹5,469 crores (up 145% YoY, record quarterly performance)
  • Free cash flow pre-growth capex: ₹5,253 crores
  • Net cash position: ₹5,572 crores
  • Silver contributed approximately 46% to overall profitability
  • Lead concentrate sales: 10,000 tons sold for ₹315 crores revenue (equivalent to approximately 9 tons of silver and 6,000 tons of lead metal content)
  • Contribution to National Exchequer: Approximately ₹6,450 crores through taxes, royalties, duties and other statutory earnings

Strategic Developments

  • Secured mining lease for rare earth elements and Yttrium block in Gundlupet, Karnataka
  • Rampura Agucha Mine received Zinc Mark certification (first mine in India to achieve this)
  • Renewable energy consumption increased to 22%
  • Deployed India's first 250 metric ton electric crane
  • Added 1,869 Nand Ghars in Rajasthan (cumulative total over 11,000)
  • Included in Dow Jones Best-in-Class Emerging Markets Index for first time

Growth Projects Update

  • 250 KTPA integrated zinc smelter at Debari: Mine development activities started
  • Tailings reprocessing plant: Construction activities started, site mobilization completed
  • Hot acid leaching plant at Dariba: On track for Q2 completion
  • Fertilizer plant at Chanderiya: On track for Q2 completion (phosphoric acid portion)
  • Phosphoric acid plant to be commissioned in Q2; full fertilizer plant expected by Q1 FY28
  • Capex spent in Q1: Approximately ₹800 crores
  • Full-year growth capex guidance: $500-600 million

Market Environment

  • Zinc averaged $3,466 per ton (reaching high of $3,625)
  • Lead averaged $1,954 per ton
  • Silver prices moderated to $73 per troy ounce
  • Manufacturing activity remained in expansion territory supported by domestic demand and government capex

Hedging Position

  • Zinc: 48,000 tons hedged at $3,162 per ton
  • Silver: 34 tons hedged at $63 per ounce
  • Hedge losses in Q1: Approximately ₹200 crores

Other Key Disclosures

  • Domestic coal proportion: 36% (compared to 54% last year and 64% in Q4)
  • Power and fuel costs increased sequentially due to lower linkage coal materialization and higher imported coal costs
  • SEBI observations on related party transactions: Corrective measures implemented regarding value-based approvals when LME price increases cause transactions to exceed approved limits
  • Dividend policy unchanged (minimum 30% of profit and 5% of reserves)
  • Paid first interim dividend of ₹11 per share during the quarter
  • Rare earth elements block development timeline: 2-3 years for exploration, 5-6 years for production (expected 2031-32)
  • New zinc smelter capacity (600+ KT): Estimated capex ~₹24,000-25,000 crores, 36-month construction period post-board approval (expected Q3 FY27)