Ladies and gentlemen, good day, and welcome to the Second Quarter FY27 Earnings
Conference Call hosted by Hindustan Zinc. As a reminder, all participant lines will be in the
listen-only mode, and there will be an opportunity for you to ask questions after the presentation
concludes. Should you need assistance during the conference call, please signal an operator by
pressing star, then zero on your touchtone phone.
I now hand the conference over to Ms. Raksha Jain, Director of Investor Relations of Hindustan
Zinc. Thank you, and over to you.
Raksha Jain:
Thank you, operator. And good evening, ladies and gentlemen. Thank you for joining us today
to discuss the second quarter and half-year results of FY27. In this call, we will refer to our
investor presentation available on our company's website. Please note that today's entire
discussion will be covered by the Safe Harbour clause mentioned on slide two of the
presentation.
Today's call is joined by our CEO, Mr. Amarendu Prakash, and our CFO, Mr. Amit Gupta, who
will also be interacting with you during the call. The management will be discussing the
operational and financial updates for the quarter, followed by a Q&A session.
Now, I would like to invite Mr. Amarendu Prakash to present the results. Over to you, sir.
Amarendu Prakash:
Thank you, Raksha. A very good evening to all of you. Thank you for joining us today. Happy
to report that we are sustaining our strong momentum in the second quarter, delivering solid
operational and financial performance while we continue to focus on our strategic priorities. Our
cost competitiveness and disciplined execution has helped us in sustaining this momentum.
If I look at how we define our success, of course, safety remains a core measure of our operating
performance. In this quarter, we have recorded zero fatalities across the whole operations. We
are committed to achieving net-zero by 2050, as already informed. We are increasing our
renewable energy basket. In this quarter, the renewable energy accounted for 27% of our power
consumption, which we intend to take to 35% in the quarters to come.
In one of our subsidiaries, HZAPL, Hindustan Zinc Alloys Private Limited, I'm happy to report
that that subsidiary is using 100% renewable power now. We also introduced our first Electric
Crane at Rajpura Dariba Complex and first Electric Cherry-Picker at Rampura Agucha.
Further, we are entering partnerships with different agencies to continue our ESG drive. We
have tied up for a high-density plantation at Chanderiya Lead-Zinc Smelter and also entered an
MoU to deploy further 30 electric vehicles for material movement.
I'm pleased to share that our ESG reporting suite, that is Sustainability Report, Climate Action
Report, and TNFD Report, is all available on our website. Similarly, our CSR initiatives continue
Page 2 of 9
Sensitivity: Internal (C3)
Hindustan Zinc Limited
October 19, 2026
to deliver meaningful impact. As a highlight, I would like to inform that we added almost 3,000
Nand Ghars across Rajasthan, thereby taking our overall presence of Nand Ghars in the country
to 12,263.
Looking at the market environment, India's growth outlook remains strong. GDP projections are
in the range of 6.4% in 2026 and 6.7% in 2027. As we know, this is well above the global growth
rate projections of 3% and 3.4%, respectively. This has been possible, in part, through the
government capital expenditure, which has risen 2.6x over last six years. In FY27 also, the
government capital expenditure is budgeted at approximately 4.4% of GDP.
Coming to our industry, zinc fundamentals remain strong, with 2026 forecasted refined zinc
demand is at 13.87 million tons, whereas the supply outlook is at 13.69 million tons. That means
there's almost a 180 KT deficit in the market.
New projects are limited, as we hear, and mine closures and declining grades will mean that over
the next decade, we see the markets remaining tight, whereas infrastructure growth,
urbanization, electrification indicates an annual demand growth in the market.
Silver, again, is expected to remain in deficit for the sixth consecutive year in 2026. The overall
shortfall is projected at about 1.44 thousand tons. The industrial demand of silver is increasing.
As we look at -- as you all know, we have been looking at new-tech and new-tech markets, but
now, the world is realizing that old-age minerals and metals are what will actually make this
new-tech industry feasible.
Coming to the operational performance of the company, mined metal production has risen 5%
year-on-year. This is the highest-ever second-quarter output. Similarly, our refined metal
production has risen 7% year-on-year. And I'm happy to report that zinc cost of production is
better by 29%. Our zinc cost of production in second quarter FY27 stands at $703 per ton.
Zinc cost of production, we had guided earlier will be for the year we had guided for a projection
of $975 to $1,000. However, looking at the current improvements in zinc cost of production, we
are revising our COP guidance to $825 to $850 for the full year.
Similarly, saleable silver production has risen 20% year-on-year. This stands at 173 tons in this
quarter. This has contributed approximately 45% of first-half profitability, so it remains very
important to us.
Our industry-leading cost position, strong production, and favorable commodity prices have
driven a record quarterly financial performance. Our EBITDA stands at INR9,285 crores, and
the net profit is at a record level of INR6,412 crores.
Going forward, our growth projects remain on track. Engineering and procurement for the 250
KTPA integrated zinc expansion is almost complete, and mine development is underway.
Similarly, the 10 million tons per annum tailing reprocessing plant is also progressing as per
plan.
Page 3 of 9
Sensitivity: Internal (C3)
Hindustan Zinc Limited
October 19, 2026
Looking ahead, we remain focused on translating this momentum into sustained performance.
For this, we will have a very disciplined execution of our expansion projects, further strengthen
our cost leadership, and we will try to unlock greater value from our resources.
Our growth is AI-driven and technology-led. We focus on AI in a big way, not just in
implementing use cases of AI, but also making our process AI-native. Our strong start to FY27
reinforces our confidence in the strategy ahead. Backed by our integrated business model and
favorable structural demand trends, Hindustan Zinc is well-positioned to accelerate its 2x growth
journey.
With this, I now hand over to Amit, our CFO, for an update on the financial performance.
Amit Gupta:
Thank you, Mr. Prakash. And good evening, everyone. The global business environment
remains challenging amid escalating geopolitical tensions, energy and trade disruptions,
changing tariff policies, and divergent regional growth trends. While these dynamics are likely
to drive near-term volatility across inflation, currencies, and financial markets, India remains a
key growth driver, supported by resilient domestic consumption and sustained investment in
infrastructure and manufacturing.
In this environment, commodity prices will continue to be influenced by geopolitical
developments, energy cost, monetary policy, currency movement, and global growth trends.
Energy market disruptions have heightened volatility, while supply constraints and low
inventory have provided support to zinc prices, and persistent supply deficits have remained
favorable for silver.
Despite near-term uncertainties, the medium-term to long-term outlook for our key metals
remains positive. Our integrated business model, competitive cost structure, prudent capital
allocation, and robust balance sheet positions us well to navigate market volatility, pursue
strategic growth opportunities, and sustain value creation across commodity cycles.
Our strong momentum continued in this second quarter, with quarterly EBITDA surpassing
INR9,000-crores mark for the first time. This was driven by consistent execution, benefit from
last-year debottlenecking project, the commissioning of additional roaster, and cost of
production. Our precious metal portfolio also continues to contribute meaningfully to our
profitability.
During the quarter, we delivered revenue from operations of INR15,093 crores, up 77% yearon-year. This growth was led by higher metal production and supportive commodity prices, with
better by-product realization, lead concentrate sale, and a stronger dollar providing additional
upside.
The combination of strong revenue growth and operating leverage translated into highest-ever
quarterly EBITDA of INR9,285 crores, up 108% year-on-year, with an industry-leading margin
of 62%.
Page 4 of 9
Sensitivity: Internal (C3)
Hindustan Zinc Limited
October 19, 2026
Profitability was further strengthened by quarterly zinc cost of production at $703 per ton,
excluding royalty, since underground transition. In addition, we monetized 10 KT of lead
concentrate during the quarter, containing approximately 10 ton of silver and 6,000 ton of lead.
Together, stronger revenue and margins drove record quarterly Net profit of INR6,412 crores,
up 142% year-on-year. This strong performance, together with robust quarterly results,
translated into best-ever first-half financial performance.
Our half-year revenue from operations reached at INR28,840 crores, up 77% year-on-year, while
EBITDA grew 108% to INR17,359 crores, supported by lowest zinc cost of production,
excluding royalty, 776 per ton. Net profit rose to a record of INR11,881 crores, up 143% yearon-year, reaffirming the resilience of our business model and strong cash generation capability.
Generating INR6,389 crores of free cash flow before growth capex during the quarter highlights
the strength of our underlying cash flows, cost competitiveness, and prudent financial
management. This strong cash generation provides the capacity to advance our strategic
expansion plans while preserving financial discipline and supporting sustainable long-term value
creation.
We closed the quarter with net cash balance of INR11,268 crores, reinforcing our financial
strength and providing ample headroom to capitalize on growth opportunities. Our robust
balance sheet and disciplined capital allocation approach enable us to balance investment in
future growth with attractive shareholder returns.
In the first half of the year, we delivered 15% total shareholder return, including INR64 per share
in capital appreciation and INR11 dividend. This placed Hindustan Zinc among the top five
NIFTY metal companies and top 40 NIFTY 100 companies by market capitalization at
September-end. Our returns were 12x the NIFTY 50 and 4 times the NIFTY 100, reinforcing
the commitment to long-term value creation.
Our contribution to India's economic growth remains an integral part of our value creation
philosophy. During the first half of the year, Hindustan Zinc contributed more than INR13,000
crores to the national exchequer through taxes, royalties, duties, and other statutory levies,
reinforcing our role as a responsible corporate citizen and a meaningful contribution to India's
economic development.
Looking ahead, we remain focused on strengthening our cost leadership, advancing our capacity
expansion plan, and maintaining a strong balance sheet to support consistent cash generation
and attractive shareholder returns. With our 2x growth ambition, integrated operating model,
and favorable long-term demand prospects for zinc and silver, we are well-positioned to
capitalize on emerging opportunities and deliver sustainable long-term value for our
stakeholders.
With that, I would like to thank all the shareholders for their continued trust and support. I will
now hand it over this call to the operator for Q&A session. Thank you.
Page 5 of 9
Sensitivity: Internal (C3)
Hindustan Zinc Limited
October 19, 2026
Moderator:
Thank you very much. We will now begin the question-and-answer session. We'll take our first
question from the line of Pallav Agarwal from Antique Stock Broking. Please go ahead.
Pallav Agarwal:
Yes, good afternoon, sir, and congratulations on a very good set of numbers. So, the first question
was on the hedging. If you could just share what levels or what quantity and hedges that we have
and just break it down over the quarters for the rest of the quarters, that would be helpful.
Amit Gupta:
At this point of time, for the quarter three, we have a 40 KT of zinc which is hedged, and 36 KT
of zinc for quarter four hedged at the rate of 3,476 for quarter three, and 3,698 for quarter four.
And we have a 8-ton of silver also, which is only in quarter three.
Pallav Agarwal:
And what is...
Amit Gupta:
At a rate of $68 per ounce.
Pallav Agarwal:
Yes, thank you for that. Just on the second question was on the cost. We are significantly below
what we started with the cost guidance of USD975 per ton to USD1,000 per ton. How are sulfuric
acid prices, have they remained strong? Can there be a positive surprise to our revised guidance
of USD825 to USD850 going ahead?
Amit Gupta:
Yes. So, you're right. From the cost point of view, we have a positive surprise on the byproduct
realization, which is sulfuric, and there are cost escalations also because of the geopolitical
issues. So, that is impacting us almost by $50. So, in totality, we are delivering the cost, and for
the quarter two, we are believing that we will be broadly in the same range, delivering the overall
cost estimate for the year at $825 to $850.
Pallav Agarwal:
Sure, sir. Yes, thank you. That is it from me.
Moderator:
Thank you. Next question is from the line of Kartikeya Pandey from 360 ONE Capital. Please
go ahead.
Kartikeya Pandey:
Yes, hi, sir. Thanks for the opportunity, and congratulations on great set of numbers. Yes. Am I
audible properly?
Moderator:
Yes, please go ahead.
Kartikeya Pandey:
Hello? Yes, so, I had just two questions…
Amit Gupta:
Yes, Kartikeya. You are good.
Kartikeya Pandey:
One is that how much was your domestic coal usage in percentage for second quarter?
Amarendu Prakash:
It's a 32%, Kartikeya.
Kartikeya Pandey:
Okay. And, sir, on capex front, how much was the capex in Q2? And out of that, how much was
sustaining capex and how much was growth capex? Just this bifurcation.
Page 6 of 9
Sensitivity: Internal (C3)
Hindustan Zinc Limited
October 19, 2026
Amit Gupta:
During the quarter, we have spent around INR1,200 crores on sustaining capex and around
INR700 crores on the growth capex.
Kartikeya Pandey:
Okay. And, sir, what is the whole-year outlook on this? How much will be the sustenance and
growth…
Amit Gupta:
So, whole-year outlook, we are on the same line, the way we have guided, the whole-year
outlook is in the range of INR5,000 crores only. And with the expansion which we are expecting
in quarter three and four, so we'll be able to spend more during those quarters.
Kartikeya Pandey:
Okay, sir. Thank you, sir. I will join back.
Moderator:
Thank you. We'll take our next question from the line of Anuj Khandelwal from JM Financial.
Please go ahead.
Anuj Khandelwal:
Good afternoon, sir. Congratulations on really good set of numbers. So, my question is, do we
have any update on the new critical mineral blocks that we have? Hello, am I audible?
Amarendu Prakash:
Yes. Can you hear us?
Anuj Khandelwal:
Yes.
Amarendu Prakash:
Okay. So, the four crystal blocks that we have are exploration blocks basically. Three out of
those four are exploration blocks. So, we have a guidance of -- we'll be finishing our exploration
program in the third quarter of FY29. So, that will be the time when we will know the exact ore
body position and resources available there. Once we conclude this, then we can come back with
the production plan and all our business.
One, the Gundlupet REE Block and Yttrium Block, it is a mining lease, and we have executed
that mining lease, and then we'll be going ahead. It will give you some indication of the resources
and business plan in 2, 3 years.
Anuj Khandelwal:
Okay. Thank you, sir. And can you also tell me how much was the ore grade in the second
quarter?
Amarendu Prakash:
7.6% ore grade.
Anuj Khandelwal:
Okay. Thank you so much, sir.
Moderator:
Thank you. We'll take our next question from the line of Shweta Dikshit from Systematix. Please
go ahead.
Shweta Dikshit:
Hi. Good afternoon. Thank you. Sir, we sold lead concentrate in the second quarter as well.
Could you indicate what was the revenue and margins like for concentrate sale in this quarter,
and what is your plan for the rest of the year?
Page 7 of 9
Sensitivity: Internal (C3)
Hindustan Zinc Limited
October 19, 2026
Amit Gupta:
So, during this quarter, we have sold 10 KT of concentrate, which consists of 10 ton of silver
and 6,000 tons of lead. Overall revenue generated is INR300 crores, and out of this, profits
created INR155 crores. And in terms of plans, we don't have as such any plan for the concentrate.
We take a call based on the business decision whether we have more concentrate in place as
compared to our smelter capacity, then only we take this call.
Shweta Dikshit:
Understood. And lastly, any change or update on the silver production guidance for FY27, since
we've done 321 tons in the first half?
Amit Gupta:
Yes. So, we are confident we will be able to deliver our guidance of 680. And if you see, in the
H1, we have sold 20 KT of concentrate, which includes 20 ton of silver as well. So, put together,
we have done 340, you can assume, in H1. And H2, we are confident we will be able to deliver
as per the guidance.
Shweta Dikshit:
And for FY28, are we at 730, 750 kind of a number?
Amarendu Prakash:
We can hope to do that. We have some of the debottlenecking projects in the pipeline. So, we
will be finalizing the numbers towards the end of it.
Shweta Dikshit:
Okay. Thank you, sir. That's it from my side.
Moderator:
Thank you. Next question is from the line of Sumangal Nevatia from Kotak Securities. Please
go ahead.
Sumangal Nevatia:
Yes, good evening. Thanks for the chance. Sir, first question, is it possible to share the COP
number without the sulfuric acid credits, just to get a better sense on what's happening on overall
other costs? And also, if you could share sulfuric acid revenue contribution, which we account
for, say, maybe in 2Q or 1H FY27?
Amit Gupta:
Sulfuric acid is our byproduct, and if you see in this business, we have multiple byproducts.
Although sulfuric prices are high, so that's why we can say that we have a significant benefit in
our COP of sulfuric acid, but we are giving a COP number as a overall number only, and we are
not anticipating any guidance on the sulfuric acid because it is absolutely dependent upon the
market, and we sell everything on auction basis.
Sumangal Nevatia:
Okay. Is it possible to share last year, what was the contribution? Was it around INR1,500-odd
crores in in revenue?
Amit Gupta:
Around INR1,000 crores to INR1,200 crores, we can say.
Sumangal Nevatia:
Okay. And this year, whatever is the first half trended, is it higher, maybe how much higher
versus last year? Any color on that, sir?
Amit Gupta:
Again, I'm saying we are not giving any guidance or any number on the sulfuric acid, because
it's a byproduct for us, and we sell it in a auction price. So, whatever is the market price, we get
it during that period. So, there is no such guidance on sulfuric.
Page 8 of 9
Sensitivity: Internal (C3)
Hindustan Zinc Limited
October 19, 2026
Sumangal Nevatia:
Understood. All right. That's the only question I had. Thanks, and all the best.
Moderator:
Thank you. We'll take our last question from the line of Ram from J.P. Morgan. Please go ahead.
Sorry, we've lost his connection. As there are no further questions, I now hand the conference
over to Ms. Jain for closing comments. Over to you.
Raksha Jain:
Thank you, operator. And thank you all for joining today's call. Should you have any further
questions or require additional information, please feel free to reach out to the Investor Relations
team. Thank you, and have a great day.
Moderator:
Thank you. On behalf of Hindustan Zinc, that concludes this conference. Thank you all for
joining us. And you may now disconnect your lines.
Page 9 of 9
Sensitivity: Internal (C3)
