Chairperson

India: Key to a Reorganising World

There are multiple drivers of the shift towards a new mineral age. The first of these is technological advancement. The shift to clean energy, the rise of the digital economy, and the onset of AI has created a new demand for old minerals (like zinc and silver) and a fresh demand for new minerals (like rare earths and lithium). Over the next decade and a half, their demand is expected to surge by 500%, as forecasted by the World Bank.

The second is geopolitical: disrupted supply chains and shifting alliances have made self-reliance in strategic minerals a matter of urgency for nations worldwide. It may not seem intuitive given India's import dependence in minerals, but it does have an edge when it comes to resource from below-the-ground. We possess significant reserves of critical minerals and rare earth elements, 80% of which are still unexplored. We have a government that has moved with purpose, identifying 30 critical minerals, launching competitive auction processes, and signalling intent to make India a resource powerhouse. The opportunity, and the responsibility, lies in unlocking resources through scientific, sustainable, and minimally invasive mining methods. This is where Hindustan Zinc can contribute, with our operational legacy, our people, our technology, and the responsibility to lead this journey.

Performing on Solid Foundations

FY2026 exemplified what a disciplined, integrated, low-cost operating model can deliver across volatile markets and shifting global dynamics.

We achieved our highest-ever mined metal and second-best refined metal production. Our EBITDA and net profit reached an all-time high with industry-leading margins. And we achieved this while reducing the zinc cost of production by 9% YoY to a 5-year low of US$ 959 per tonne, which is amongst the lowest globally.

A key value driver in our integrated portfolio continues to be silver, a by-product of our zinc-lead operations that has steadily grown in strategic relevance. With its rising role in photovoltaics, electronics, and advanced manufacturing, silver is increasingly positioned at the heart of the energy transition and the digital economy in addition to its intrinsic value as a precious metal. Our ability to sustainably produce this critical metal within a low-cost, integrated operating system strengthens resilience through cycles and enhances the quality of our earnings.

Equally important, we continued to strengthen the sustainability of our core business through focused exploration and resource conversion. By steadily building our reserves and extending mine life, we are securing long-term visibility for our operations and reinforcing confidence that Hindustan Zinc's growth ambitions are anchored on a durable, high-quality resource base.

Our inclusion in the Nifty 100 and Nifty Next 50 indices in September 2025 marked a quiet but significant moment. This milestone reflects multiple years of disciplined growth, operational excellence, and commitment to creating long-term value for all our stakeholders and for the nation.

Beyond shareholder returns, Hindustan Zinc remains a significant contributor to the exchequer through taxes, royalties, and statutory levies, alongside sustained dividends that recycle value back into the economy. We take pride in the role our operations play in strengthening the fiscal and developmental capacity of the nation and the states in which we operate.

HZL 2.0: Building a Larger, Multi-Metal Enterprise

Beyond performance, FY2026 brought greater clarity to our vision in the decade ahead.

Our Board has approved our most ambitious capex programme, aimed at doubling the refined metal capacity to 2.0 Mtpa, which will almost double the annual revenue and EBITDA.

But HZL 2.0 is more than an expansion. It is a transformation from a zinc-focused company into a diversified multi-metal enterprise aligned with critical minerals, clean energy, and future technologies. This year, we secured three critical mineral blocks, rare earth elements (REE) in Uttar Pradesh, tungsten in Andhra Pradesh, and potash in Rajasthan, each vital to critical sectors:

• Rare earth elements for the permanent magnets in electric vehicle motors and wind turbines
• Tungsten for defence applications, high-efficiency industrial tools, and next-generation energy systems
• Potash for the fertilisers that sustain our agricultural economy

Each of these is a calibrated move into minerals where India urgently needs self-sufficiency, backed by Hindustan Zinc's geological expertise, operational capability, and financial strength.

Sustainability Goals

Our commitment to sustainability continues to deepen. For the third consecutive year, Hindustan Zinc was ranked the world's most sustainable metals and mining company in the S&P Global Corporate Sustainability Assessment 2025, achieving an industry-leading score of 90 out of 100. We were also recognised with the Best CSR in Private Sector Award at the Mining & Metals Excellence Awards 2025 for the meaningful impact we created on local communities.

One of the most significant milestones of FY2026 has been Hindustan Zinc's induction into the International Council on Mining and Metals (ICMM). With this, we become the first and only Indian company to join a prestigious forum comprising an elite cohort of 26 global mining leaders, highlighting both our and India's growing influence in the global critical minerals ecosystem.

This is both a recognition of where we stand and an elevated mandate for where we must go. To translate this milestone into measurable outcomes, we have instituted a structured governance mechanism with Board-level oversight and a management-led implementation roadmap, backed by periodic reviews and strengthened assurance.

Today, our absolute Scope 1+2 emissions stand at 5.02 million tCO₂e. Our renewable energy mix increased to c.18%, up from c.13% in the previous year, with new capacities from Serentica Renewables India Private Limited coming online. The path is all set to achieve 70% renewable mix by FY2028.

Our water stewardship tells a similar story. We have achieved 3.32 times water positivity, returning more water to our ecosystems than we consume. Our tailings dam water reuse and treated water recycling programmes at Rampura Agucha and Zawar Mines alone conserved over 1,65,000 m³ of fresh water in FY2026.

The circular economy vision gained a significant boost with Board approval for India's first zinc tailings reprocessing plant of 10 Mtpa feed capacity. Upon completion in FY2028, this plant will help recover metal from legacy tailings, transforming decades of accumulated industrial residue into commercial value.

Our low-carbon zinc product, EcoZen, moved from innovation to commercial adoption this year as we entered supply agreements. This marks a positive step towards decarbonisation of downstream industries.

Advancing Digital-Led Safety

At Hindustan Zinc, we have a deeply embedded safety architecture across all our operations. Our Critical Risk Management programme and Suraksha Kavach stewardship initiative ensure safety is embedded into every layer of our organisation. We are boldly deploying technology to scale up safety standards. The use of tele-remote drilling machines, remote mining operations from surface, and robotic automation is systematically removing people from hazardous environments. Advanced AI-powered camera surveillance systems deployed across operations strengthen vigilance and monitoring.

Building a Future-Ready Workforce

People are our greatest assets, and it is where we are investing deliberately and continuously. Our 27,000+ skilled workforce has been instrumental in delivering a record operational performance, all the while ensuring commitment to stringent safety and sustainability standards and advancing new capacity creation.

We are further building the workforce that HZL 2.0 will require. VEDAS (Vedanta Academy for Sustainability) is leading this effort by creating a digital learning ecosystem. Through VEDAS, our digital learning program, 88% of identified high potential employees upskilled in AI, ESG analytics, and data science this year. We are shaping the engineers and technologists who will run a 2 Mtpa operation with intelligence and precision.

Women now represent 26.4% of our workforce – a global benchmark in mining. What began with opening underground operations to women has evolved to women working night shifts in our mines. It is a matter of great pride that the leaching and purification section at our Chanderiya Smelting Complex is entirely women-led. We are proud to have set a global benchmark and are committed to raising it further, with a target of 30% representation by FY2030.

Communities: Our True Measure of Success

Through interventions in education, healthcare, skill development, water and sanitation, sports, and cultural preservation, we have positively impacted the lives of around 2.6 million people across 4,149 villages. Conceptualised as a platform to strengthen nutrition, support early childhood education, and empower women, our Nand Ghar initiative has evolved into one of the most impactful and scalable community platforms in rural Rajasthan.

In a unique initiative, Hindustan Zinc joined hands with the Rajasthan Heritage Authority to develop the Heritage Corridor at Poonchari ka Lautha Deeg. Through the project, we are preserving and restoring historical sites, developing botanical gardens, and promoting the cultural fabric of the communities that have been our neighbours for decades.

Progressing with Clarity and Conviction

The road ahead is full of promise. Of course, delivering a 2x expansion, building a multi-metal future, scaling supporting capabilities, and meeting the expectations of ICMM would all require exceptional execution. Our track record of delivery gives us confidence in what we will achieve next.

We have a solid foundation in a robust balance sheet and prudent capital allocation, best-in-class assets and operational excellence, people, and technology.

Thank you to our valued stakeholders for trusting us through the years. We seek your continued support to build on our legacy of responsible mining and exploration, contributing to India's vision of self-reliance, and creating value for all stakeholders.