Any current/future new fundraising through debt or equity?

Hindustan Zinc Limited primarily plans to fund its growth and expansion through internal cash flows. Management indicated that they are earning enough to fund growth organically without needing debt. However, they may consider taking debt if it is cheaper than the opportunity cost of their own funds due to the company's strong balance sheet. No explicit plans or announcements regarding new equity fundraising were mentioned. The company aims to maintain a balance between paying dividends and investing in expansion. Overall, while the primary intention is to use internal accruals for capex, debt

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

Hindustan Zinc is progressing on a 250,000 tons per annum integrated zinc smelter at Debari; site mobilization and detailed engineering largely finalized, with orders expected by June 2026. The plan includes a 1 million ton smelter combining phases for cost efficiency, with a full feasibility and board announcement expected by July 2026. Tailings reprocessing plant site work at Rampura Agucha has commenced, with engineering completed. Technology-led project: Hot Acid Leaching process commissioning expected in 2Q FY '27 to recover additional lead and silver from smelter waste. Fertilize

Future growth expectations in sales/revenue/volumes?

Planned capacity expansion with a 250,000 tons per annum (KTPA) integrated zinc smelter at Debari nearing completion, expected to increase production capacity significantly. Future ramp-up includes a potential 1 million ton smelter in one location (Rajasthan), consolidating expansions to reduce costs and improve efficiencies. Target refined metal production for FY27 is approximately 1,100 KTPA ±10 KT, with mined metal production expected at 1,150 KTPA ±10 KT. Refined silver production is expected to rise to 680 tons ±10 tons in FY27, with a medium-term goal of increasing silver output to aroun

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

Hindustan Zinc targets sustained strong performance with mined metal production of 1,150 KTPA and refined metal production of 1,100 KTPA in FY27, indicating volume growth. Cost leadership and operational excellence lead to industry-low zinc production costs, supporting margin resilience. Silver’s contribution to profitability increased to 45%, with strategic sales enhancing earnings. The company expects to continue a double-digit IRR on growth projects like the 250 KTPA smelter expansion. Dividend policy remains strong at a minimum of 30% of PAT, balancing payouts with growth investments. Rene

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Hindustan Zinc LtdQ1 FY26Non - Ferrous Metals

Hindustan Zinc Ltd Q1 FY26 Earnings Call Analysis

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

Price: ₹518P/E: 19.7Market Cap: ₹2.7L CrSector: Non - Ferrous Metals

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Planned capacity expansion with a 250,000 tons per annum (KTPA) integrated zinc smelter at Debari nearing completion, expected to increase production capacity significantly.
→Future ramp-up includes a potential 1 million ton smelter in one location (Rajasthan), consolidating expansions to reduce costs and improve efficiencies.
→Target refined metal production for FY27 is approximately 1,100 KTPA ±10 KT, with mined metal production expected at 1,150 KTPA ±10 KT.
→Refined silver production is expected to rise to 680 tons ±10 tons in FY27, with a medium-term goal of increasing silver output to around 830 tons by 2029, driven by new smelter capacities and technology upgrades.
→Revenue growth supported by increased volume, operating leverage, improved by-product realization, and stable commodity prices.
→Emphasis on long-term growth via technology-led initiatives, ancillary businesses, and sustainability goals to drive top-line expansion.

Margin guidance

Category 3

→Hindustan Zinc targets sustained strong performance with mined metal production of 1,150 KTPA and refined metal production of 1,100 KTPA in FY27, indicating volume growth.
→Cost leadership and operational excellence lead to industry-low zinc production costs, supporting margin resilience.
→Silver’s contribution to profitability increased to 45%, with strategic sales enhancing earnings.
→The company expects to continue a double-digit IRR on growth projects like the 250 KTPA smelter expansion.
→Dividend policy remains strong at a minimum of 30% of PAT, balancing payouts with growth investments.
→Renewable energy adoption aims to reduce costs by $25 per ton as share rises to 70% by FY28.
→Capital expenditure guided at $500-$600 million for growth projects, financed mainly from internal accruals ensuring healthy cash flows.
→Overall, earnings/profits/EPS are expected to grow, supported by production ramp-up, cost efficiencies, and by-product contributions.

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Fundraise plans

→Hindustan Zinc Limited primarily plans to fund its growth and expansion through internal cash flows.
→Management indicated that they are earning enough to fund growth organically without needing debt.
→However, they may consider taking debt if it is cheaper than the opportunity cost of their own funds due to the company's strong balance sheet.
→No explicit plans or announcements regarding new equity fundraising were mentioned.
→The company aims to maintain a balance between paying dividends and investing in expansion.
→Overall, while the primary intention is to use internal accruals for capex, debt could be considered opportunistically; no equity fundraising plans disclosed.

Order book

The transcript does not explicitly mention the current or expected order book or pending orders for Hindustan Zinc Limited. However, some relevant points related to orders and project progress include: - For the 1 million ton smelter expansion, the design for a 600-700 KTPA smelter in one location has been finalized. - Commercial processes are ongoing, with orders expected to be placed within about one month from April 2026. - Orders for mill expansions are anticipated to be finalized between early to mid-June 2026. - Site mobilization and engineering for the 250,000 TPA smelter at Debari are largely complete. - Tailings reprocessing plant work has begun, with engineering completed. - The company is accelerating exploration for growth plans with partners onboarded at Zawar and Rajpura Dariba. No detailed monetary value or explicit orderbook figures were disclosed.

Capex plans

Yes

→Hindustan Zinc is progressing on a 250,000 tons per annum integrated zinc smelter at Debari; site mobilization and detailed engineering largely finalized, with orders expected by June 2026.
→The plan includes a 1 million ton smelter combining phases for cost efficiency, with a full feasibility and board announcement expected by July 2026.
→Tailings reprocessing plant site work at Rampura Agucha has commenced, with engineering completed.
→Technology-led project: Hot Acid Leaching process commissioning expected in 2Q FY '27 to recover additional lead and silver from smelter waste.
→Fertilizer project on track for commissioning in early 2Q FY '27 (phosphoric acid plant and DAP manufacturing).
→FY26 capex was INR 3,600 crore (INR 2,000 crore growth capex).
→Long-term goal to reach 70% renewable energy by FY28 to reduce production costs.

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