Hindustan Zinc Ltd on Friday reported a 4.7% year-on-year drop in net profit to ₹2,234 crore for the quarter ended June 30, 2025, compared with ₹2,345 crore in the corresponding quarter a year ago.

Revenue from operations fell 4.4% year-on-year to ₹7,771 crore for the first quarter of 2025-26 compared with ₹8,130 crore in the year-ago period. The decline in revenue was on account of lower volumes and lower zinc and lead commodity prices, partly offset by higher silver prices, a stronger dollar, and higher by-product realisations, the company said.

The Vedanta Group company reported an EBITDA margin of 50% in Q1 FY26, up from 49% a year ago. It recorded EBITDA of ₹3,860 crore, down 2% year-on-year driven by lower volumes and lower zinc and lead prices, partly offset by higher silver prices, stronger dollar, and lower cost of production.

“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,” said Hindustan Zinc CEO Arun Misra.

“In line with the rising zinc demand projected by 2030, the Board has approved the Phase-1 expansion project towards 2x growth, further strengthening our growth pipeline. Coupled with the addition of blocks of critical minerals and rare earth elements, we are strategically poised to transform into a true multi-metal powerhouse, unlocking sustained value for all our stakeholders,” Misra added.

Commenting on the earnings, Sandeep Modi, Chief Financial Officer at Hindustan Zinc, said: “Despite commodity headwinds and a weaker dollar, our focus on sustainable and efficient production enabled us to deliver a consistent EBITDA margin of 50%.”

“Staying true to our commitment to create long-term value for our shareholders, the Board declared an interim dividend of ₹ 10 per share during the quarter, reinforcing our track record of consistent returns. Amidst continued global uncertainties, our healthy balance sheet, structurally leaner cost base, and robust growth project pipeline position us well to deliver sustainable long-term value,” Modi added.

The company clocked the lowest-ever Q1 zinc cost of production since underground transitioning, which stood at $1,010 per tonne, better 9% YoY driven by improved metal grades, better domestic coal and renewable energy consumption, higher by-product realisations, and softened input commodity prices partly offset by lower volume.

As on June 30, 2025, the company had gross investments and cash, and cash equivalents of ₹9,340 crore invested in high quality debt instruments. Total borrowings outstanding as on June 30, 2025, was ₹13,524 crores.