Q1 2026 Hindustan Zinc Ltd Earnings Call Transcript
Key Points
- Hindustan Zinc Ltd (BOM:500188) engaged with over 40 technology start-ups on 60 projects, leveraging AI, machine learning, and other technologies for process optimization and sustainability.
- The company achieved its highest ever first-quarter mined metal production of 5,000 tonnes with the lowest cost of production since transitioning to underground mining.
- Silver prices surged 17% year-on-year, contributing significantly to profitability, with silver production accounting for roughly 41% of overall profitability.
- The company is expanding its capacity with a new 160,000 tonnes per annum roaster at Debari, expected to be commissioned by mid-Q2, and plans to double its capacity with a capital expenditure of INR12,000 crore.
- Hindustan Zinc Ltd (BOM:500188) has secured Letters of Intent for new critical mineral blocks, including potash, rare earth elements, and tungsten, aligning with India's resource nationalism goals.
- Global economic uncertainties, including rising US tariffs and geopolitical conflicts, have impacted zinc and lead prices, which softened during the quarter.
- Refined metal production was impacted by ongoing maintenance activities, resulting in lower production volumes.
- The company faced challenges with lower silver volumes in Q1 due to lower metal production and lower silver grades.
- The fertilizer plant projects have been delayed by a quarter, impacting the timeline for revenue generation from these projects.
- The company's net debt has increased to INR4,000 crore, raising concerns about leverage levels as it plans further capital expenditure.
Portions of this transcript marked (audio in progress) indicate audio problems. The missing text will be supplied if a replay becomes available.
(audio in progress) Across the organization. Currently, Hindustan Zinc is engaged with more than 40 technology start-ups on over 60 different projects and is further engaging with nearly 50 start-ups through Vedanta's Park program to explore potential use cases. Vedanta's unique global corporate accelerator where Hindustan Zinc participates and innovation-led transformation projects that addresses critical business challenges.
Under Vedanta Spark program, Hindustan Zinc has unlocked high potential opportunities by leveraging technologies such as artificial intelligence, machine learning, computer vision, drone technology the Internet of Things and augmented reality and virtual reality issues. These projects cover diverse areas, including process optimization, tenants to metal recovery, asset reliability, productivity and sustainability
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