Hindustan Zinc Q3 Update: Mined Metal Output Rises 4%, Lead Production Declines

Hindustan Zinc Limited reported steady improvement in production volumes during the third quarter ended December 31, 2025, with mined and refined metal output rising on higher ore production, debottlenecking initiatives and improved plant availability. The company achieved its highest ever third quarter mined metal and refined metal production since transitioning to underground mining operations.

Record Third Quarter Performance

The company's Q3FY26 performance showcased mixed results across production parameters:

Production Metric	Q3FY26	Q3FY25	YoY Change	Q2FY26	QoQ Change
Mined Metal (kt):	276	265	+4%	258	+7%
Saleable Metal (kt):	270	259	+4%	246	+9%
Refined Zinc (kt):	221	204	+8%	202	+10%
Refined Lead (kt):	49	55	-11%	45	+9%
Silver (tonnes):	158	160	-1%	144	+10%
Wind Power (MU):	50	47	+5%	132	-62%

Mined metal production reached 276 kt, marking a 4.00% increase year-on-year, driven by higher ore production. Saleable metal production also rose 4.00% from the previous year to 270 kt, reflecting improved refined output during the quarter.

Operational Highlights and Performance Drivers

Refined zinc production demonstrated robust growth of 8.00% year-on-year to 221 kt, supported by the commissioning of debottlenecking projects at the Chanderiya and Dariba smelters, ramp-up of the 160 ktpa roaster at Debari, and better operational availability across plants.

Refined lead production declined 11.00% year-on-year to 49 kt. The company attributed the drop to pyro operations being conducted on lead-only mode in the corresponding period last year and lower availability at pyro plants during the quarter. However, quarter-on-quarter performance showed a 9.00% improvement.

Silver output during the quarter stood at 158 tonnes, remaining broadly flat year-on-year with a marginal 1.00% decline, while demonstrating a 10.00% quarter-on-quarter increase in line with lead production trends.

Nine Months Performance Overview

For the nine months period ending December 31, 2025, Hindustan Zinc achieved record performance:

Nine Months Metrics	9MFY26	9MFY25	Change (%)
Mined Metal (kt):	799	784	+2%
Saleable Metal (kt):	766	783	-2%
Refined Zinc (kt):	624	613	+2%
Refined Lead (kt):	142	170	-16%
Silver (tonnes):	451	511	-12%
Wind Power (MU):	316	285	+11%

The nine months mined metal production of 799 kt represents the highest production since underground transition, achieved through improved grades, higher ore production and better recoveries. Refined zinc production increased 2.00% to 624 kt, while refined lead production declined 16.00% to 142 kt due to lower pyro plant availability and operational factors.

Renewable Energy Performance

Wind power generation reached 50 million units in Q3FY26, marking a 5.00% year-on-year increase aided by favourable wind velocity conditions. For the nine months period, wind power generation totaled 316 million units, representing an 11.00% improvement over the previous year, demonstrating the company's commitment to sustainable energy practices.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.75%	+0.63%	+25.80%	+39.62%	+41.61%	+163.04%

Hindustan Zinc Limited disclosed to stock exchanges on January 02, 2026, regarding a significant facility agreement entered into by its related parties. The company received intimation under Regulation 30A of SEBI LODR from multiple related entities on January 01, 2026, at 09:58 PM IST.

Facility Agreement Structure

The facility agreement dated December 30, 2025, involves multiple parties within the Vedanta group structure, with Hindustan Zinc Limited not being a direct party to the arrangement.

Role:	Entity	Relationship with HZL
Borrower:	Vedanta Resources Limited	Related party and member of promoter group of Vedanta Limited
Guarantors:	Twin Star Holdings Limited	Related party and member of promoter group of Vedanta Limited
	Vedanta Holdings Mauritius II Limited	Related party and member of promoter group of Vedanta Limited
	Welter Trading Limited	Related party of HZL
Agent:	Bank of Maharashtra IFSC Banking Unit	Not a related party
Lender:	Bank of Maharashtra GIFT City Branch	Not a related party

Financial Terms and Purpose

The facility agreement provides for financing up to USD 80.00 million. The facility serves multiple specific purposes as outlined in the agreement terms.

Primary Uses of Facility:

Part repayment of intercompany loan availed by Twin Star Holdings Limited from VRL Group
Payment of interest and other amounts accrued on the intercompany loan
Payment of interest, fees, costs and expenses related to the finance documents
Ensuring no proceeds are routed to India

Operational Restrictions on Hindustan Zinc

While Hindustan Zinc Limited is not a direct party to the facility agreement, certain operational restrictions apply to the company effective from the first utilization date.

Key Restriction:

Amendment of constitutional documents that affects lender rights or has material adverse effect under the facility agreement requires lender consent or must fall within permitted parameters

The facility agreement includes standard representations, warranties, and covenants typical for such transactions, along with customary events of default including non-payment, insolvency proceedings, and unenforceability provisions.

Impact Assessment

Parameter:	Details
Management Impact:	No direct impact on management or control of HZL
Liability Exposure:	No liabilities imposed on HZL
Shareholding:	HZL holds no shares in facility agreement parties
Related Party Transaction:	Does not qualify as related party transaction under LODR
Restriction Quantification:	Not ascertainable as restrictions are covenant-based

The restrictions become effective from the first utilization date as defined under the facility agreement terms. The company emphasized that the quantification of restrictions is not ascertainable due to their covenant-based nature rather than specific monetary obligations.