Hindustan Zinc reports record Q1 mined metal output for fifth straight year

Hindustan Zinc, a Vedanta Group company, announced its business update for the first quarter ended June 30, 2026, achieving another record production milestone, driven primarily by better ore grades.

The company reported its highest-ever first-quarter mined metal production for the fifth consecutive year, with output rising 1% year-on-year to 268,000 kt in Q1FY27 from 265,000 kt in the corresponding quarter last year.

Saleable metal production increased 4% YoY to 260,000 kt, supported by capacity unlocked through debottlenecking initiatives at Chanderiya and Dariba, as well as the 160 ktpa roaster at Debari, partially offset by planned maintenance activities.

Refined zinc production rose to 213,000 kt, while refined lead production declined 2% year-on-year to 47,000 kt, as per the company's regulatory filing.

Silver production remained largely stable at 149 tonnes (4.8 million ounces) compared with the year-ago period. Meanwhile, wind power generation stood at 133 million units, marginally lower than 134 million units reported in Q1FY26.

In the March quarter, mined metal production stood at 315,000 kt, while saleable metal production was 282,000 kt. Silver production came in at 176 tonnes.

In another development, the company, on June 22, signed a memorandum of understanding (MoU) with Advantek Associates LLP and Aero Eagle Automobiles Pvt. Ltd. to explore the adoption of green hydrogen and other clean energy solutions across its operations.

The company said the initiative forms part of its strategy to develop low-carbon mining operations and aligns with its target of achieving net-zero emissions by 2050 or earlier.

March quarter performance

For the quarter ended March 2026, the company reported a 67.6% year-on-year jump in net profit to ₹5,033 crore, while revenue rose 43.8% to ₹12,692 crore, supported by higher metal prices, improved realisations, and strong operational performance.

Shares crash 16% in June

The company's shares witnessed a sharp correction in June, falling 16%, marking their second-biggest monthly decline in 2026, amid a sustained drop in global silver prices.

The correction also erased much of the stock's gains for the year, with its year-to-date return now standing at 14%, a sharp slowdown from the 38% gain recorded in 2025.

Hindustan Zinc is particularly sensitive to fluctuations in silver prices, given the metal's significant contribution to the company's revenue and profitability.

Earlier this month, Vedanta confirmed that officials from the Enforcement Directorate (ED) had visited some of its offices as part of a FEMA-related investigation, which also weighed on investor sentiment.

Further, media reports suggested that the government is considering selling up to a 2% stake in Hindustan Zinc. The government had previously divested a 1.6% stake in the company in November, raising around ₹3,500 crore. The shares in that transaction were sold at ₹505 apiece.

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