So, like, Arun Misra, the big boss at Hindustan Zinc, spilled some beans in an interview with businessline. He was all about how India’s infrastructure growth is holding up pretty well, thanks to steel demand going up and the automobile sector chipping in. Revenue for the quarter ending on March 31, 2025, hit ₹9,000 crore (up 20 per cent from last year), while earnings were sitting pretty at ₹3,000 crore (up 47 per cent). Misra also talked about zinc prices, the impact of geopolitical tensions on investments, production costs, and plans to dive into critical minerals. Let’s dive into some juicy details he shared, shall we?
So, Misra thinks that zinc prices won’t be touching those sky-high levels of $3,000-3,200 per tonne anytime soon due to all the global craziness. He predicts prices to be in the $2,600–2,750 range this fiscal year. If things settle down in the world, we might see a bump to $2,800 per tonne. But hey, those numbers are still lower than the exit prices of $2,875 per tonne from last year.
Now, what about Trump’s tariffs? Misra doesn’t really see a direct impact on India since the US mostly gets its zinc from Canada. And let’s face it, getting zinc from Canada to India is a bit of a hassle due to the distance. Good thing Indian demand for zinc is still going strong, driven by the automobile, infrastructure, and steel sectors.
According to the International Lead and Zinc Study Group, global demand for refined zinc is expected to go up by 1.6 per cent to hit 14.04 million tonnes in 2025. The rise will be mainly fueled by India and Korea, with some help from China’s automotive and electrical industries. As for refined lead, demand is forecasted to grow by 1.9 per cent to reach 13.39 million tonnes in 2025, thanks to the lead acid battery segments in China, India, and Vietnam.
Now, let’s talk business. Hindustan Zinc is aiming for a production target of 1,125 kilo tonnes for mined metal, plus or minus 10 kilo tonnes, in FY26. For refined metal, the target is 1,100 kilo tonnes, plus or minus 10 kilo tonnes, and for silver, it’s 700–710 tonnes. Silver production took a hit in FY25, dropping by 8 per cent year-on-year to 687 tonnes, but things are looking up for FY26 with a guidance range of 700–710 tonnes. The company is eyeing a shift towards a zinc-lead operating model, which could potentially boost silver output to over 1,000 tonnes once mined metal capacity hits 1.5 million tonnes.
When it comes to spending cash, Hindustan Zinc is looking at a total capex of ₹4,900–5,400 crore for FY26. This includes ₹1,900–2,200 crore for growth initiatives and ₹3,000 – 3,200 crore for maintenance. In FY25, capex stood at ₹4,400 crore, with a chunk of it going towards growth projects.
So, is the changed price guidance going to shake things up for Hindustan Zinc? Well, Misra seems pretty chill about it. He expects free cash flows to be in the $1–1.1 billion range, just like last year. The company is gearing up to present a growth capex plan of $1–1.1 billion to the Board soon, aiming to ramp up production to 2 million tonnes of mined metal. The capex will be a mix of debt and equity, with free cash flow covering around $0.5 billion for capex annually.
In the finance department, Hindustan Zinc’s net debt dropped to ₹1,169 crore in FY25 from ₹5,720 crore in September 2024. And when it comes to cost benefits, the company ended FY25 with a zinc cost of production at $1,052 per tonne, thanks to better ore grades, increased by-product sales, and lower input costs. For FY26, production costs are expected to hover around $1,025–1,050 per tonne, with a boost from renewable energy integration and favorable coal prices.
Now, let’s talk about some exciting stuff. Hindustan Zinc is gearing up to dive into precious metals and critical minerals mining. They’ve got their eyes set on a gold mine in Rajasthan and a tungsten block in Andhra Pradesh. Exploration activities are in the pipeline, and it might take a couple of years to kickstart mining in these areas. And hey, they’re also eyeing other mineral blocks like potash and lithium. Looks like Hindustan Zinc is all set to shake things up in the mining game!
So, there you have it—Hindustan Zinc is on a roll, with big plans and even bigger dreams. Stay tuned for more updates on their journey into the world of mining and minerals!