Hindustan Zinc, a subsidiary of Vedanta Limited, on Friday released its fiscal first quarter earnings report with profit at Rs 2,234 crore, surpassing estimates. This was 4.73 per cent lower than Rs 2,345 crore recorded during the first quarter of FY25.
It posted revenue from operations at Rs 7,771 crore, posting a decline of 4.42 per cent as against Rs 8,130 crore reported during the corresponding quarter of previous financial year. The drop in revenue was attributed to lower volumes and lower zinc and lead commodity prices partly offset by higher silver prices, stronger dollar, and higher by-product realisations.
The company EBITDA stood at Rs 3,859 crore. This was down 2 per cent on-year on lower volumes and lower zinc and lead prices partly offset by higher silver prices, stronger dollar, and lower cost of production.
According to a CNBC TV18 poll, Hindustan Zinc was expected to record Q1 profit at Rs 2,156 crore and revenue for the quarter was estimated at Rs 7,850 crore.
Arun Misra, Chief Executive Officer, said, “Delivering our highest-ever first quarter mined metal production at the lowest-ever zinc cost of production reflects our relentless focus on operational efficiencies and cost leadership.”
In line with the rising zinc demand projected by 2030, the company Board has approved the Phase-1 expansion project towards 2x growth, further strengthening our growth pipeline.
Hindustan Zinc Q1: Liquidity and investment
As on June 30, 2025, the company had healthy gross investments and cash, and cash equivalents of Rs 9,340 crore invested in high quality debt instruments. Total borrowings outstanding as on June 30 stood at Rs 13,524 crore.
Hindustan Zinc Q1: Dividend announcement
The company board on June 11, 2025 declared an interim dividend of Rs 10 per equity share aggregating to Rs 4,225 crore, with the record date of June 17, 2025, for FY26.
Sandeep Modi, Chief Financial Officer, said, “Staying true to our commitment to create long-term value for our shareholders, the Board declared an interim dividend of Rs 10 per share during the quarter, reinforcing our track record of consistent returns.”
Crisil on Hindustan Zinc’s business stability and healthy financial performance
Earlier today, Crisil Ratings had taken note of the US-based short-seller Viceroy Research report on the Vedanta group, and the subsequent intraday volatility in the share prices of Vedanta Limited and Hindustan Zinc.
Crisil Ratings noted that the stock prices for Vedanta and HZL have recovered since the report’s publication. “Based on feedback from management and select lenders, Crisil Ratings understands that currently there has been no adverse reaction from any lender or investor,” it said.
Crisil Ratings said that the ratings of Vedanta and its subsidiaries continue to be “supported by the strength of the business risk profiles of their Indian operations and healthy financial performance”.
Considering the capital-intensive nature of the businesses and the group’s regular fund raising-and refinancing needs, Crisil Ratings said, any impact on financial flexibility remains a rating sensitivity factor.
Meanwhile, it maintained that any potential adverse regulatory or governance-related developments, in the wake of the research report, will be key monitorable.
The Viceroy report and Vedanta’s response
Earlier on July 9, Viceroy Research had released a report on Vedanta Resources (VRL), saying the company “resembles a Ponzi scheme”. The short-seller had said that the “entire group structure is financially unsustainable, operationally compromised”. According to their report the Group “poses a severe, under-appreciated risk to creditors.”
However, on the same day, Vedanta had issued a statement calling it “a malicious combination of selective misinformation and baseless allegations”. In a statement spokesperson from Vedanta Group said, “The report is a malicious combination of selective misinformation and baseless allegations to discredit the Group. It has been issued without making any attempt to contact us with the sole objective of creating false propaganda.”