Hindustan Zinc Ltd delivered its strongest quarterly performance on record, posting a net profit of ₹3,916 crore for the three months ended December 31, 2024. The Vedanta Group subsidiary's profit surge of 46% year-on-year was primarily driven by rallying silver prices and improved operational efficiency across its mining operations.

Financial Performance Highlights

The company's financial metrics demonstrated robust growth across key parameters during Q3 FY26:

*Calculated based on reported growth percentages

Silver emerged as the primary profit driver, contributing approximately 44% of the company's total profit during the quarter. The precious metal's average price reached $54.73 per troy ounce, representing a substantial 74% increase compared to the same period last year.

Operational Excellence and Cost Management

Hindustan Zinc achieved significant operational improvements that enhanced profitability beyond favorable commodity pricing. The company recorded its lowest zinc production cost in five years at $940.00 per tonne, down sharply from $1,041.00 per tonne in the corresponding quarter of the previous year.

The company noted that every $25.00 per tonne movement in production costs results in a ₹210-230 crore impact on consolidated EBITDA, highlighting the significance of these cost improvements.

Strong Balance Sheet Recovery

The exceptional quarterly performance enabled Hindustan Zinc to return to a net-cash position after recent quarters of net-debt following significant dividend payouts. The company's financial position improved dramatically:

Management Commentary and Outlook

Arun Misra, Chief Executive Officer, emphasized the quarter's record-breaking nature, stating that the results reflected "operational excellence and strong fundamentals with the company achieving its highest-ever third quarter metal production and five-year lowest quarterly zinc cost of production."

The company maintained its guidance of 680 tonnes of silver production for FY26, despite producing 451 tonnes during the first nine months ending December 31, 2024. This translates to an average of 150 tonnes per quarter, requiring 229 tonnes of silver production in the final quarter to meet annual targets.

Market Performance Drivers

Silver prices reached exceptional levels during the quarter, with December recording an average price of $64.34 per ounce. While silver prices surged, zinc and lead maintained their elevated price levels, providing stable revenue streams from the company's diversified metal portfolio. The combination of favorable pricing and operational efficiency improvements created significant operating leverage, resulting in EBITDA exceeding ₹6,000 crore and surpassing market expectations.

Hindustan Zinc Limited has announced significant changes to its Board of Directors following directives from the Ministry of Mines. The company informed stock exchanges on January 19, 2026, about the appointment of a new government nominee director and the cessation of the previous appointee.

New Director Appointment

The Ministry of Mines has appointed Mr. Sandeep Vasant Kadam as Part-time Official Director on Hindustan Zinc's board. The appointment details are outlined below:

Mr. Kadam's appointment was formalized through letter no. 31/3/2020-Met. 1 dated January 19, 2026, from the Ministry of Mines, with the appointment taking immediate effect.

Director Cessation

Simultaneously, Mr. Dinesh Mahur ceased to be a director of the company. The cessation details are as follows:

Mr. Mahur's cessation was also communicated through the same Ministry of Mines letter, effective immediately.

Regulatory Compliance

The company has disclosed these changes under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Hindustan Zinc stated that it is taking necessary action to complete the requisite formalities related to these board changes.

The disclosure was signed by Aashhima V Khanna, Company Secretary & Compliance Officer, and communicated to both BSE Limited and National Stock Exchange of India Limited on January 19, 2026. The company indicated that further disclosures regarding the completion of formalities will be submitted in due course.