India’s robust infrastructure expansion and steady automobile demand continue to drive strong domestic zinc consumption despite global uncertainties, according to Arun Misra, CEO of Hindustan Zinc.
For the March quarter of 2025, Hindustan Zinc recorded revenues of INR 9,000 crore (approximately USD 1.08 billion), a 20% year-on-year increase. Earnings rose significantly by 47% to INR 3,000 crore (approximately USD 361 million).
Misra expects zinc prices to remain between USD 2,600–2,750 per tonne this fiscal year, slightly below last year’s average of USD 2,875 per tonne. The ongoing geopolitical tensions are likely to keep prices under pressure, though a more stable scenario could lift them closer to USD 2,800 per tonne.
Commenting on the potential impact of recent U.S. tariffs, Misra noted minimal direct risk to India’s zinc market, given logistical challenges for North American supply reaching Indian shores. India’s internal demand growth, particularly from infrastructure, automotive, and steel sectors, remains robust.
Global refined zinc demand is projected to rise 1.6% to 14.04 million tonnes in 2025, mainly driven by India and Korea, according to the International Lead and Zinc Study Group.
Hindustan Zinc set a mined metal production target of approximately 1,125 kilotonnes for FY26, alongside 1,100 kilotonnes of refined metal and 700–710 tonnes of silver. Despite an 8% year-on-year decline in silver output in FY25, the company aims to ramp up silver production beyond 1,000 tonnes as mined metal capacity reaches 1.5 million tonnes.
Capital expenditure for FY26 is budgeted at INR 4,900–5,400 crore (USD 590–650 million), including INR 1,900–2,200 crore for growth initiatives. This is slightly above FY25’s INR 4,400 crore.
Hindustan Zinc significantly reduced its net debt to INR 1,169 crore in FY25 from INR 5,720 crore in the previous year. The company also expects a decrease in production costs to USD 1,025–1,050 per tonne in FY26, driven by increased renewable energy usage, anticipated to rise from 13% to around 30–35%.
Additionally, Hindustan Zinc is actively expanding into critical minerals. It recently secured a gold mine in Rajasthan and a tungsten block in Andhra Pradesh, with exploration activities expected to commence soon. The company is also pursuing bids on lithium and potash blocks, aligning with India’s broader strategic minerals initiative.
