What's Happening?
Hindustan Zinc Limited, the world's largest integrated zinc producer, reported a record-breaking performance for the quarter and half-year ending September 30, 2025. The company achieved its highest-ever
second quarter mined metal output of 258 Kt, supported by a five-year low zinc production cost of $994 per tonne. This represents a 7% improvement year-on-year and a 2% quarter-on-quarter reduction. Revenue from operations reached an all-time high of ₹8,549 crore, with EBITDA rising to ₹4,467 crore, maintaining a robust 52% margin. Net profit increased to ₹2,649 crore, marking a 19% sequential and 14% annual growth. Silver contributed nearly 40% of total profitability, highlighting Hindustan Zinc's advantage in the emerging silver economy. The company also achieved operational milestones, including the commissioning of a new 160 Ktpa roaster at Debari and debottlenecking at the Dariba Smelting Complex.
Why It's Important?
Hindustan Zinc's record performance underscores its strong market position and operational excellence. The company's inclusion in the Nifty 100 and Nifty Next 50 indices reflects its consistent performance and leadership among India's top corporates. With silver contributing significantly to profits, Hindustan Zinc is well-positioned to leverage favorable market dynamics. The company's commitment to sustainability, as evidenced by its pioneering of EcoZen, Asia's first low-carbon 'green zinc', and its target of Net Zero emissions by 2050, aligns with global trends towards responsible mining and environmental stewardship. This positions Hindustan Zinc as a key player in India's clean energy journey and the global sustainable metals market.
What's Next?
Hindustan Zinc plans to continue its expansion and resource efficiency efforts, with Board approval for India's first 10 Mtpa Zinc Tailings Reprocessing Plant at Rampura Agucha. The company aims to maximize resource value and advance circularity, reinforcing its role in sustainable growth. As a member of the International Council on Mining and Metals (ICMM), Hindustan Zinc is committed to responsible mining practices. The company's strategic focus on portfolio diversification and disciplined cost management will likely continue to drive sustainable value creation and profitability.
Beyond the Headlines
Hindustan Zinc's achievements highlight the broader trend of integrating sustainability into core business strategies within the mining industry. The company's efforts in reducing its carbon footprint and enhancing water positivity are significant in the context of global environmental challenges. By transforming over 2.3 million lives through its CSR initiatives, Hindustan Zinc demonstrates the potential for mining companies to contribute positively to social development while maintaining economic viability.