Hindustan Zinc Q1FY26 profit slips 5% on lower metal prices to ₹2,234 cr

The dip in profit was largely attributed to a decline in revenue, which dropped to ₹7,591 crore in Q1 FY26 compared to ₹7,893 crore a year earlier.

In a statement, HZL cited reduced volumes and weaker prices of zinc and lead as the primary reasons for the revenue contraction.

The impact, however, was partially cushioned by higher silver prices, a stronger dollar, and better by-product realisations.

Despite revenue pressures, the company kept costs under control.

Total expenses during the April–June quarter stood at ₹5,065 crore, lower than ₹5,284 crore recorded in the corresponding period last year.

HZL also achieved a notable operational milestone, recording its lowest-ever zinc production cost for a first quarter since moving to underground mining. The cost stood at $1,010 per tonne, reflecting a 9% year-on-year reduction.

“In line with the rising zinc demand projected by 2030, the board has approved the Phase-1 expansion project towards 2x growth, further strengthening our growth pipeline," said Arun Misra, Chief Executive Officer, HZL.

He added, “With the recent addition of critical mineral and rare earth element blocks, HZL is strategically poised to transform into a true multi-metal powerhouse, unlocking sustained value for all our stakeholders.”

Among key capital projects, HZL said its 160 kilo tonne per annum (KTPA) roaster at Debari in Rajasthan is on track to be commissioned in Q2 FY26.

Additionally, the 510 KTPA fertiliser plant project is progressing as scheduled and is expected to be completed by Q1 FY27.