Any current/future capex/capital investment/strategic investment?

Ongoing capex of INR3,600 crores in FY26, with INR2,000 crores as growth capex. Steady progress on 250,000 tons per annum integrated zinc smelter at Debari: site mobilization complete, detailed engineering largely finalized. Plans for a 1 million ton smelter combining multiple phases—600 to 700 KTPA smelter in one location, including the 250 KTPA smelter; conceptual plan and layout expected by Q1 FY27 with board announcement post feasibility. Tailings reprocessing plant site work commenced at Rampura Agucha, engineering completed. Accelerated exploration for 2x growth plans at Zawar an

Future growth expectations in sales/revenue/volumes?

Hindustan Zinc plans to increase refined metal production to approximately 1.15 million tons in FY27, ±10 KT. Silver production is expected to reach around 680 tons in FY27, ±10 tons. Expansion includes a 250,000 tons per annum integrated zinc smelter at Debari, progressing with site mobilization and engineering. Plans for a 1 million ton smelter consolidated at one location (Debari, Rajasthan), combining initial 250 KT plus subsequent expansions. Growth projects targeting 2x production increase underway with exploration at Zawar and Rajpura Dariba. Technology-led initiatives like the Hot Acid

Future growth expectations in earnings/operating earnings/profits/EPS?

Hindustan Zinc expects continued strong earnings growth supported by stable zinc demand, accelerating energy transition driving zinc and silver demand, and operational excellence. FY27 refined metal production guidance is 1,100 KTPA, with silver production expected at 680 tons, supporting revenue growth. Cost leadership with zinc cost of production forecasted at $975-$1,000 per ton in FY27 helps sustain margin resilience. Earnings benefit from higher by-product realization, including silver, contributing 45% to overall profitability. Growth capex of $500-$600 million planned for FY27 t

IN US

Hindustan Zinc LtdQ1 FY27Non - Ferrous Metals

Hindustan Zinc Ltd Q1 FY27 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹593P/E: 14.9Market Cap: ₹2.5L CrSector: Non - Ferrous Metals

Management growth scorecard

Revenue

N/A

Margin

N/A

Fundraise

N/A

Order

N/A

Capex

N/A

0 of 0 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

→Hindustan Zinc plans to increase refined metal production to approximately 1.15 million tons in FY27, ±10 KT.
→Silver production is expected to reach around 680 tons in FY27, ±10 tons.
→Expansion includes a 250,000 tons per annum integrated zinc smelter at Debari, progressing with site mobilization and engineering.
→Plans for a 1 million ton smelter consolidated at one location (Debari, Rajasthan), combining initial 250 KT plus subsequent expansions.
→Growth projects targeting 2x production increase underway with exploration at Zawar and Rajpura Dariba.
→Technology-led initiatives like the Hot Acid Leaching process aim to enhance by-product recovery, adding to revenues.
→The company aims to increase renewable energy share to 70% by FY28, potentially reducing production costs and improving margins.
→VAP (value-added products) share to be raised to 50%, improving domestic market presence and realization by $50–60 per ton.
→The company continues to balance capex and dividends, funded mainly through internal accruals.

Margin guidance

→Hindustan Zinc expects continued strong earnings growth supported by stable zinc demand, accelerating energy transition driving zinc and silver demand, and operational excellence.
→FY27 refined metal production guidance is 1,100 KTPA, with silver production expected at 680 tons, supporting revenue growth.
→Cost leadership with zinc cost of production forecasted at $975-$1,000 per ton in FY27 helps sustain margin resilience.
→Earnings benefit from higher by-product realization, including silver, contributing 45% to overall profitability.
→Growth capex of $500-$600 million planned for FY27 to fund expansion projects like the 250,000 tons zinc smelter and tailings reprocessing, driving future volume and profit growth.
→Dividend policy to maintain minimum 30% payout of PAT, balancing between rewarding shareholders and funding growth.
→Long-term IRR estimates for new projects (e.g., 250 KTPA smelter) remain in double digits, indicating robust profitability outlook.
→Focus on leveraging sustainable energy and technological advancements to drive cost reductions and enhance profitability over time.

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Fundraise plans

- Hindustan Zinc Limited primarily plans to fund its growth and expansion through cash flows generated from operations. - The company ideally intends not to use debt for growth expansion. - However, they may consider taking loans if they find the borrowing cost attractive and if it benefits the company’s balance sheet strength. - Cash flow timing mismatches may also lead to occasional debt usage, but the primary funding is internal. - There is no mention in the transcript of any upcoming equity fundraising. - Overall, the company is confident in earning enough internally to fund its growth projects without needing new equity or substantial debt. (Source: Page 12, discussion between Sumangal Nevatia and Arun Misra)

Order book

The transcript provided from Hindustan Zinc Limited's earnings call does not explicitly mention details about the current or expected order book or pending orders. However, there are some references related to project orders and timelines: - Orders for mining equipment have been placed. - Orders for mill expansion are expected to be finalized by early to mid-June. - Delay in clearing all orders intended by January, but focusing on consolidating orders at one location to reduce project costs. - The company plans to place orders for a 600-700 KTPA smelter within about one month's time from the call date. - The 250 KTPA smelter project orders have started, including site mobilization and detailed engineering largely finalized. No quantifiable order book or pending order figures are disclosed in the transcript.

Capex plans

→Ongoing capex of INR3,600 crores in FY26, with INR2,000 crores as growth capex.
→Steady progress on 250,000 tons per annum integrated zinc smelter at Debari: site mobilization complete, detailed engineering largely finalized.
→Plans for a 1 million ton smelter combining multiple phases—600 to 700 KTPA smelter in one location, including the 250 KTPA smelter; conceptual plan and layout expected by Q1 FY27 with board announcement post feasibility.
→Tailings reprocessing plant site work commenced at Rampura Agucha, engineering completed.
→Accelerated exploration for 2x growth plans at Zawar and Rajpura Dariba with partners onboarded.
→Technology initiative: Hot Acid Leaching process commissioning expected in 2Q FY27.
→Fertilizer project on track for commissioning in early 2Q FY27.
→Capital investment funded primarily through cash flows; debt may be considered opportunistically due to strong balance sheet.

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