HINDUSTAN ZINC LIMITED
Hindustan Zinc Limited (HZL), India’s largest integrated zinc producer and a global top-3 primary zinc producer, presents a compelling investment opportunity driven by record operational performance, favorable commodity pricing, and strategic growth initiatives. The company has demonstrated strong operational momentum with record-breaking mined metal production of 1,095 kilotonnes and refined zinc output of 827 kilotonnes in FY2025, coupled with extraordinary Q3 FY26 results showing 46% year-on-year profit growth.
Key Business segments
For Hindustan Zinc, almost all revenue comes from core metals; wind is negligible.
Segment mix (FY25)
- Zinc, lead & others: ~78–80% of revenue.
- Silver: ~18–20% of revenue,
- Wind energy: ~0.5–1% of revenue
Shareholding Pattern (Dec-25)
Financial Summary
| Particulars | Mar 2023 | Mar 2024 | Mar 2025 |
| Sales – | 90,488 | 89,760 | 89,088 |
| Sales Growth | 14.09% | -0.80% | -0.75% |
| Expenses + | 73,649 | 73,008 | 71,067 |
| Operating Profit | 16,839 | 16,752 | 18,021 |
| OPM % | 19% | 19% | 20% |
| Tax % | 23% | 25% | 24% |
| Net Profit + | 11,366 | 11,112 | 13,218 |
| EPS in Rs | 10.34 | 10.57 | 12.54 |
| Dividend Payout | 5% | 5% | 48% |
Final Outlook
Hindustan Zinc (HZL) enters 2026 with record profitability, a net cash balance sheet and strong leverage to structurally tight zinc and silver markets, especially the ongoing silver deficit and price spike above Rs 3 lakh/kg in India. At around 23–24x trailing P/E, valuations are at a premium to the stock’s long-term average but broadly in line with current non-ferrous peers, which caps near-term upside but remains justified if elevated silver prices sustain and the company delivers on volume guidance.
Key Financials
Hindustan Zinc reported Q3 FY26 revenue of Rs 10,980 Cr (+27% YoY) and PAT of Rs 3,916 Cr (+46% YoY), with EBITDA margins at 55% driven by higher silver realizations and volumes. Silver output hit 451 tonnes in 9M FY26 toward a 680 tonne FY26 target, aided by ramp-ups and better grades. Balance sheet turned net cash positive (~Rs 329 Cr) despite high dividends.
Market Drivers
Silver prices above Rs 3 lakh/kg (international >$50/oz) fuel ~40-45% of EBIT amid global deficits from solar/green energy demand. Zinc/lead stable, with zinc costs controlled at ~$1,000/tonne target; focus on debottlenecking (e.g., Chanderiya expansion).Accumulate on dips for 2-3 year hold: High FCF/ROE (profit Rs 11,691 Cr TTM), dividend yield appeal, and silver super-cycle exposure outweigh volume/price risks. Monitor Q4 silver volumes and metal prices for catalysts
