Investment Case

Strategically positioned for the next growth phase

Hindustan Zinc is the world’s largest integrated zinc producer and amongst the top 10 silver producers globally, focusing on a multi-metal portfolio critical to the global economy and a greener future. In a world that is evolving, centred around new-age advanced technologies and energy transition, our market-leading position with expanding presence in transition-critical metals, cost leadership, and world-class assets and practices, positions us competitively. We continue to build on these capabilities to unlock new opportunities and create long-term value.

Hindustan Zinc employees at a solar power site — strategically positioned for the next growth phase
1

Large-scale, low-cost, irreplaceable asset base with mine life of 25+ years

Large-scale operations with tier-1 assets and product portfolio

  • World’s largest integrated zinc producer and amongst the top 10 silver producers with world-class, strategically located mining and smelting assets
  • Highest-ever ore R&R of 468.6 Mnt, with highest-ever metal reserve of 13.9 Mnt since underground transition and record silver reserves of 10.9 kt, supporting 25+ years of mine life and vision for 2x operational expansion, with sustained R&R replenishment through innovative technologies and advanced geophysics
  • Diversified, customer-centric product portfolio with c.22% value-added products, strong domestic presence (c.74% expected primary zinc market share) and growing presence in over 40 countries

Global cost leadership

  • First quartile in the global zinc mining cost curve and first decile in the global zinc smelting cost curve
  • Sustainable cost reduction powered by integrated operations, economies of scale, structural cost reduction initiatives, automation, and digitalisation
  • Power cost optimisation through increased RE share to c.18% and increased domestic coal use to 53%, insulating power cost from commodity price variations
Graph supporting Hindustan Zinc’s large-scale, low-cost, irreplaceable asset base
25+years
Mine Life
c.22%
Value-added Portfolio
2

Invested in metals relevant for energy transition

Portfolio aligned with future demand

  • Portfolio anchored in base metals essential for a low-carbon, sustainable future
  • Zinc is a critical metal for daily use and future technologies
    • Essential for galvanising steel, clean energy infrastructure, and EV manufacturing
    • Usage in 3D-printed automotive parts, UV-resistant coatings for modern buildings, and public health
    • Zinc oxide nanoparticles used to purify water and create germ-resistant cleaners for hospitals
    • Extends life of solar and wind assets by preventing corrosion
    • Zinc-based batteries offer a low-cost, long-life and sustainable alternative to the lithium variants, being non-toxic and effective across a wider temperature
  • Silver’s role is extending beyond previous metal to a catalyst for green economy
    • Supports transition to a low-carbon, high-tech world, with applications spanning electronic systems, including telecommunications, infrastructure, and EVs
    • Its unmatched conductivity makes it highly effective in the solar photovoltaic cells, semiconductors, and 5G network
    • It is critical due to its unique properties, making substitution nearly impossible

Building a multi-metal future

  • Evolving into a multi-metal, future-enabling enterprise, aligned with India’s critical mineral security vision; exploring high-potential minerals like copper, lithium, nickel, cobalt, potash, rare earth elements (REE) and gold, critical for electric vehicles (EVs), semiconductors, and clean technologies
  • Expanded portfolio by securing new blocks for tungsten, potash, and rare earth elements (REE)
3

Ideally positioned to capitalise on India’s growth

Resilient economy and steel industry outlook

  • India stands amongst the world’s fastest-growing economies, supported by continued government capex, infrastructure and manufacturing push, and robust domestic consumption. Its GDP grew by an estimated 7.6% in FY2026 and projected at 6.4-6.9% for FY2027
  • A booming economy continues to propel steel demand in India, with annual crude steel production growing at a compounded c.10%
  • To sustain economic growth, India targets doubling domestic steel capacity to 300 Mtpa by 2030 with equal emphasis on energy transition (target to add 500 GW of non-fossil fuel-based energy by 2030 and become net zero by 2070)

Hindustan Zinc positioned for growth

  • Macro factors are set to almost double the domestic zinc demand for steel galvanisation and silver demand by a multi-fold to support the energy transition
  • Our global market-leading position in zinc and silver with dominant domestic presence, positions us to benefit from India’s growth
  • Capex for a 250 ktpa integrated zinc smelter at Debari and tailings reprocessing plant at Rampura Agucha positions us to meet rising zinc demand and gain market share
c.74%
Expected domestic primary zinc market share
c.100%
Silver produced sold domestically
250ktpa
New integrated refined metal capacity expansion
10Mtpa
Tailings reprocessing plant being set up at Rampura Agucha
4

Robust financial profile and strong balance sheet

Financial resilience through cycles

  • Consistently delivered phenomenal performance across all financial parameters, supported by operational efficiencies and cost optimisation strategies
  • Resilient business model helps sustain industry-leading EBITDA margins across the commodity cycle and market volatilities
  • Over six decades of expertise in commodity markets and a strong leadership suite, driving strategic decision-making, innovation, and operational consistency

Healthy balance sheet

  • Consistent AAA investment-grade credit rating by CRISIL, reflecting a stable net debt position and robust free cash flow, while enabling cheaper financing
  • Strong cash and cash equivalents supporting consistent dividend payments and staying opportunistic for organic and inorganic growth
₹22,629crore*
Net worth
₹5,594crore*
Net cash
c.54%
Industry-leading EBITDA margin in FY2026
₹13,337crore
Free cash flow from operations pre growth capex and renewable energy investment in FY2026

*As on March 31, 2026

5

Investments in high IRR projects driving strong shareholder returns

Disciplined capital management

  • Strategic investment in high IRR projects like fertiliser and hot acid leaching plant, with innovative measures to scale production, profitability, and achieve the sustainability targets
  • Industry-leading returns driven by efficient capital allocation, process rationalisation, and targeted operational efficiencies and cost optimisation strategies
  • Lower capex costs being based in India, among the world’s cheapest labour and power market

Sustainable value creation and delivery

  • Unique global positioning and expertise in navigating the market volatilities ensure resilience, agility, and maximisation in value creation
  • Efficient project execution via trained partners and teams, detailed planning, and global expert collaborations
  • Delivering strong shareholder returns through consistent growth and dividends in line with our dividend policy
₹10per share
Dividend paid during FY2026 (500% of face value)
77%
Industry-best return on equity
₹5,844crore
Capex utilised in FY2026 (including sustenance capex)
67%
Record return on capital employed
6

ESG excellence, investing in a sustainable future

ESG with fiscal prudence

  • Sustainability integrated into operational, financial, and strategic decision-making
  • Expanding adoption of RE and energy-efficient vehicles to optimise costs and accelerate decarbonisation
  • EcoZen, Asia’s first low-carbon zinc, finding commercial traction at better premiums

Business sustainability through responsible operations

  • Industry-defining initiatives to achieve ambitious Sustainability Goals 2030
  • Focus on circular economy and gainful waste utilisation and metal recovery through our recycling business
  • Minor metal complex generating additional revenue through extracting critical metals from smelting waste, including cadmium
  • Implementing an innovative hot acid leaching plant in Dariba to extract 27 MT of silver and 6 kt of lead additionally from Jarosite (smelting waste)
  • Foraying into zinc-based batteries through strategic partnerships to catalyse the global energy transition
  • Sustainability-led capabilities strengthening readiness for future regulatory requirements, low-carbon supply chains, and customer preference for responsibly produced metals
Global No. 1
In S&P Global Corporate Sustainability Assessment 2025 for the 3rd consecutive year with an industry-best score of 90/100
2.6million
Beneficiaries across 4,149 villages through sustained CSR initiatives
1st Indian Company
to be included in ICMM
c.18%
Share of renewable energy