Statement

A Macro Environment That Rewarded Discipline

Globally, FY2026 was marked by uneven growth and geopolitical volatility. India remained relatively resilient, with GDP growth of c.7.5% and manufacturing PMI sustained above 56.

Commodity markets, despite some volatility, remained resilient through the year. The underlying metal fundamentals remained constructive, with acceleration in demand for transition-critical metals. Zinc demand was stable, supported by galvanisation, while lead continued to witness steady battery-driven demand. Silver stood out with strong demand from solar and electronics, resulting in a sustained deficit.

Both base (zinc) and precious (silver) metals closed the period in positive territory, with silver recording a strong rally during Q4 FY2026. The medium-term outlook for these metals remains constructive, with silver supported by industrial demand drivers; however, pricing may remain subject to macro conditions and market volatility.

In an environment characterised by volatility in commodity prices, energy inputs, foreign exchange, and regulatory developments, we remain focused on disciplined risk management. Our mitigations include structural cost competitiveness, continuous improvement in the energy mix and procurement, prudent liquidity and balance sheet management, and strategic hedging for a portion of production. For our growth programme, we have strengthened project governance and assurance to manage execution, safety, and sustainability risks and to deliver outcomes aligned to our capital allocation priorities.

Record Performance, Record Margins

For Hindustan Zinc, which is positioned at the heart of the energy transition, these structural demand drivers, alongside our focus on cost leadership and operational excellence, translated into financial outperformance.

We delivered our highest-ever full-year topline and bottom-line performance. Revenues increased by 20% to ₹40,844 crore and EBITDA by 27% to ₹22,162 crore. Net profit grew by a strong 34% to ₹13,832 crore, with c.45% contribution from silver. We sustained industry-leading EBITDA margins of c.54%, around 300 basis points improvement over the previous year.

Zinc cost of production, excluding royalty, declined to US$ 959 per tonne, 9% lower, driven by higher domestic coal usage at 53% and softer imported coal prices. Internal drivers like record production volumes, growing renewable energy share, stronger by-product realisation, and better mine grades further optimised costs.

A key focus for us is to build resilience across commodity cycles through structural cost competitiveness, operating discipline, and a strong balance sheet. As part of our risk management framework, we undertake strategic hedging for a portion of our annual production, within policy limits, to support greater predictability of revenues, EBITDA, and cash flows and to mitigate adverse price movements. In line with our practice, we hedged 71 kt of zinc and 59 tonnes of silver at average prices of US$ 3,133 per tonne and US$ 60 per troy ounce, respectively. These positions are intended to provide protection against price volatility.

Funding the Future of Hindustan Zinc

The defining decision of FY2026 was the capital deployment in one of our most consequential growth programmes. Our Board has approved phase-1 projects worth c.₹17,000 crore towards doubling refined metal capacity to 2.0 Mtpa and building presence in new critical minerals.

In FY2026, our total capex spend (including sustenance capex) was ₹5,844 crore. This included spend towards the 250 ktpa integrated zinc smelter (including matching mines and mills capacity), a 10 Mtpa zinc tailings reprocessing plant, and exploration. Our planned capex for FY2027 is in the range of US$ 500-600 million, primarily directed towards the announced growth projects. We expect these investments to support a stronger medium-term operating profile, subject to project execution, market conditions, and other external factors.

A Balance Sheet Built to Deliver Ambition

Our balance sheet is positioned to support our strategic priorities. Based on our internal planning assumptions, we estimate pre-growth capex free cash flow (FCF) generation of ₹55,000–65,000 crore over the next five years, against an estimated growth capex outflow of ₹40,000–50,000 crore. This provides capacity to execute the expansion programme while maintaining financial prudence and continuing our focus on shareholder returns.

In FY2026, our operations generated FCF before growth capex and renewable power investment of ₹13,337 crore. We closed the year with a net cash position of ₹5,594 crore (as compared to a net debt position of ₹1,169 crore in the previous year). Gross investments and cash & cash equivalents were ₹13,846 crore as of March 31, 2026, invested in high-quality assets. We continue to maintain an investment-grade credit rating of AAA from CRISIL.

Consistent Value Delivery

Our performance in FY2026 translated into value creation for shareholders. We delivered industry-leading return on capital employed of c.67% compared to 58% in the previous year. Dividend for the year stood at ₹10 per share, translating into a total dividend payout of ₹4,225 crore, among the higher payouts in the country.

Our market capitalisation reached a peak of around ₹3,10,000 crore during the year and stood at c.₹2,12,000 crore as of March 31, 2026. Since disinvestment in FY2002, Hindustan Zinc has delivered total shareholder returns of over 1400x with a compounded annual growth rate of around c.33%. The Company's inclusion in the Nifty 100, Nifty Next 50, and multiple Nifty ESG indices reflects the market's recognition of our long-term performance and governance standards.

During FY2026, we contributed ₹18,846 crore to the national exchequer, including over ₹6,000 crore to the state of Rajasthan, reinforcing our role as a significant contributor to the economy at both the central and state levels.

Moving Ahead with Conviction

FY2026 reflected the strength of our business model and execution as we delivered strong financial and operational outcomes. The year has also positioned us to pursue the next phase of opportunities as the world progresses towards electrification, decarbonisation, and energy security.

Hindustan Zinc intends to play a pivotal role by building future-ready capabilities, advancing sustainability, and delivering consistent returns. The discipline that has defined our financial performance through economic and commodity cycles will continue to guide how we steward shareholders' capital going forward.

I thank all stakeholders for their continued trust and support. We remain focused on executing responsibly and creating long-term value for the Company and its shareholders.