Hindustan Zinc Limited , the world's largest integrated zinc producer, has reported robust financial results for the second quarter, with silver emerging as a significant contributor to the company's profitability. However, the company has revised its silver production forecast.

Financial Highlights

The company achieved its highest-ever second quarter revenue of ₹8,549.00 crore, marking a 10.00% increase quarter-on-quarter (QoQ) and a 4.00% rise year-on-year (YoY). The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at ₹4,467.00 crore, up 16.00% QoQ and 7.00% YoY, with an industry-leading EBITDA margin of 52.00%.

Profit after tax surged to ₹2,649.00 crore, representing a significant increase of 19.00% QoQ and 14.00% YoY. This strong performance was underpinned by higher commodity prices, a stronger dollar, and increased by-product realizations.

Operational Performance

Hindustan Zinc reported its best-ever second quarter mined metal production of 258 kilotonnes (kt), up 1.00% YoY. The company also achieved a five-year low in zinc cost of production at $994.00 per tonne, improving by 7.00% YoY and 2.00% QoQ.

Silver's Growing Importance and Revised Forecast

A notable highlight of the quarter was the revelation that silver now contributes approximately 40.00% to Hindustan Zinc's total profits. This positions the company uniquely to benefit from potential growth in the silver market. The increased contribution from silver underscores the company's diversified portfolio and its ability to capitalize on precious metal market trends.

However, Hindustan Zinc has adjusted its saleable silver forecast. The company now expects to produce 670-690 metric tons of silver, down from the previous estimate of 700-710 metric tons. This represents a reduction of 30-40 metric tons from the earlier production guidance.

Strategic Developments

The company announced several key operational milestones:

1. Commissioning of a 160 ktpa roaster at Debari
2. Completion of debottlenecking at Dariba Smelting Complex
3. Board approval for India's first zinc tailing reprocessing plant of 10 million tonnes per annum (Mtpa) at Rampura Agucha

These developments are expected to enhance the company's operational efficiency and sustainability efforts.

Market Recognition

Hindustan Zinc's strong performance has been recognized by the market, with the company being included in the Nifty 100 and Nifty Next 50 indices. This inclusion reflects the company's growing prominence in the Indian equity market.

Sustainability and Future Outlook

The company continues to focus on sustainable practices, becoming the first Indian company to join the International Council on Mining and Metals (ICMM). This membership aligns Hindustan Zinc with global leaders in responsible and sustainable mining practices.

Arun Misra, CEO of Hindustan Zinc, commented on the results: "Our inclusion into the International Council on Mining and Metals (ICMM) as the first-ever from India reiterates our deep commitment to responsible and sustainable mining. As we embark on our next phase of 2x growth expansion, recovering value from every resource, reusing materials through circular processes and growing portfolio of energy transition metals, we are driving India's journey towards clean energy independence."

The company's strong performance, coupled with its strategic initiatives in sustainability and operational efficiency, positions Hindustan Zinc well for future growth in the evolving metals and mining sector. However, the revised silver production forecast highlights the need for careful management of production targets in the face of changing market conditions.

Hindustan Zinc , the world's largest integrated zinc producer, has announced significant changes to its board composition and corporate governance practices. The company's Board of Directors has approved the appointment of Mr. Ashim Kumar Modi as a Government Nominee Director (Non-Executive) and made amendments to its Insider Trading Prohibition Code.

New Government Nominee Director

Mr. Ashim Kumar Modi, an Indian Revenue Service officer from the 2000 batch, has been appointed as the new Government Nominee Director, replacing Shri Ashish Chatterjee. The appointment, effective October 17, 2025, is subject to shareholder approval.

Mr. Modi brings a wealth of experience to the board:

• Currently serves as Joint Secretary & Financial Advisor in the Ministry of Coal
• Holds additional charge of the Ministry of Mines and Ministry of Minority Affairs
• Possesses a B.Tech in Civil Engineering from IIT Delhi
• Serves as Part Time Official Director on the boards of Coal India Limited and SECL

This appointment aligns with Hindustan Zinc's commitment to maintaining strong governance and ensuring diverse perspectives on its board.

Insider Trading Code Amendments

In a move to enhance its corporate governance framework, Hindustan Zinc's board has also approved amendments to the company's Insider Trading Prohibition Code. These changes are in accordance with the Securities and Exchange Board of India (SEBI) regulations, demonstrating the company's commitment to maintaining high standards of transparency and ethical business practices.

Implications for Stakeholders

These developments are significant for Hindustan Zinc and its stakeholders:

1. Government Oversight: The appointment of Mr. Modi strengthens the government's representation on Hindustan Zinc's board, potentially influencing strategic decisions and ensuring alignment with national interests.

2. Regulatory Compliance: The update to the Insider Trading Prohibition Code reinforces the company's commitment to fair market practices and investor protection.

3. Diverse Expertise: Mr. Modi's background in finance and his experience with other major public sector enterprises could bring valuable insights to Hindustan Zinc's operations and strategy.

The board meeting that approved these changes lasted from 12:00 noon to 2:10 PM IST, indicating thorough deliberation on these important matters.

As Hindustan Zinc continues to play a crucial role in India's mining and metals sector, these governance updates underscore the company's focus on maintaining robust leadership and regulatory compliance.