• Record mined metal production of 1,100kt (crossing 1 million tonnes for first time) and refined metal of 1,048kt for FY26
• Highest ever Q4 performance with mined metal at 315kt and refined metal at 282kt
• Achieved lowest cost of production in Q4 at $903/tonne (9% YoY decline, 4% QoQ decline) and full-year COP of $959/tonne, well below guidance of $1,000/tonne
• Record ore resources and reserves of 468.6 million tonnes with 25+ years mining life; metal reserves of 14 million tonnes zinc and 1,090 tonnes silver
• Precious metals contributed 45% to overall profitability; silver production at 627 tonnes for FY26
• Secured three critical mineral blocks: potash, tungsten, and rare earths as part of multi-metal enterprise strategy
• Renewable energy consumption reached 18% in FY26, targeted to reach 30-35% in FY27 and 70% by FY28
• Chanderia lead-zinc smelter became India's first site to receive Zinc Mark and Copper Mark certification

Hindustan Zinc delivered a record-breaking FY26 with highest-ever mined metal production of 1,100kt and refined metal of 1,048kt, achieving industry-leading EBITDA margins of 57% and a five-year low cost of production at $959/tonne. The company is executing an ambitious expansion plan with a 250kt smelter under construction and plans for a 1 million tonne integrated facility, while maintaining strong cash generation (INR 14,000 crores gross cash) and increasing renewable energy consumption to 18%.

Hindustan Zinc delivered exceptional financial results for FY26, with record revenue of INR 40,844 crores, EBITDA of INR 22,162 crores (54% margin), and net profit of INR 13,832 crores. Q4 FY26 was particularly strong with highest-ever quarterly revenue of INR 13,544 crores (up 49% YoY, 23% QoQ), record EBITDA of INR 7,747 crores (57% margin, up 61% YoY), and record net profit of INR 5,033 crores (up 68% YoY, 29% QoQ). The company generated free cash flow of INR 13,337 crores before capex and moved from a net debt position of INR 1,169 crores at end of FY25 to a net cash position of INR 5,594 crores as of March 2026, with gross cash of approximately INR 14,000 crores. The company contributed INR 19,000 crores to national exchequer including over INR 6,000 crores to Rajasthan state. Market capitalization stood at INR 2,12,000 crores and touched a peak of INR 10,00,000 crores during the year, with the company now included in Nifty Next 50 and ranking among top 5 Nifty metal companies.

Management demonstrated high confidence with a tone emphasizing record-breaking achievements, cost leadership, and ambitious expansion plans. Leadership repeatedly highlighted the company's structural cost advantages, with CFO Sandeep emphasizing that the $959/tonne cost of production represents a five-year low and showcases 'structural strength of our cost base.' CEO Mishra was particularly bullish on growth, detailing plans to consolidate the expansion into a single 1 million tonne smelter facility in Rajasthan rather than multiple smaller facilities, noting this approach will 'reduce the cost of the project.' Management emphasized the company's positioning for the energy transition megatrend, stating 'we see a generational opportunity for metals' and expressing ambition 'not only to participate in this transformation, but to lead it.' The team showed confidence in maintaining strong performance with specific guidance for FY27 and emphasized their hedging strategy philosophy of 10-20% as prudent rather than defensive. However, management opened the call with sincere acknowledgment of a fatal safety incident, demonstrating accountability and commitment to safety improvements through digitalization initiatives.

The company faces several challenges including volatile geopolitical environment impacting input commodity costs (diesel, propane gas, chemicals, explosives), which influenced the FY27 cost guidance increase to $975-1,000/tonne despite Q4's $903/tonne achievement. Natural gas shortage in India caused marginally higher costs (~$11/tonne impact in Q4) though production was unaffected. Silver production guidance of 680 tonnes for FY27 appears conservative given Q4 run-rate of 176 tonnes, explained by mining sequence constraints and strategic focus on zinc production when zinc prices are favorable. The company experienced a tragic fatal accident at Jawar Mines in January 2026, highlighting ongoing safety risks despite strong protocols. Hedging strategy resulted in a delta of INR 1,500 crores for full year and INR 1,100 crores in Q4 compared to market prices, representing opportunity cost from conservative hedging. Mine lease renewals due in 2030 create uncertainty, though management expressed confidence citing 'first right of refusal.' The hot acid leaching process project faces delays with commissioning now expected in FY27 due to complexity as a first-of-its-kind project in India. Brand license and strategic services fees to parent Vedanta increased from prior year to INR 1,300 crores for FY26, representing ongoing related-party obligations.

Revenue Outlook: Not explicitly provided, but implied growth from volume expansion and stable commodity prices

Margin Outlook: Expected to remain strong with industry-leading levels, supported by cost leadership and operational leverage

Key Targets:

• FY27 mined metal production: 1,150kt ±10kt
• FY27 refined metal production: 1,100kt ±10kt
• FY27 silver production: 680 tonnes ±10 tonnes
• FY27 cost of production: $975-1,000/tonne (excluding royalty)
• FY27 renewable energy: 30-35% of total consumption
• FY28: 70% renewable energy consumption
• Planned capex FY27: $500-600 million for growth projects
• 2029: Silver production capacity expansion to 830 tonnes
• Long-term: 1 million tonne integrated smelter in Rajasthan (250kt already announced, additional 600-700kt planned)

The Q&A session revealed analysts were primarily focused on three themes: (1) understanding the cost trajectory and why guidance increased despite record-low Q4 performance, (2) clarifying the silver production outlook and constraints given strong prices, and (3) seeking details on the ambitious expansion plans and capital allocation strategy. Analysts showed particular interest in hedging strategy, with some questioning why the company didn't benefit more from the silver price spike to $100/tonne, though management defended their consistent 10-20% policy as strategic rather than tactical. Several questions probed the accounting treatment of new ancillary business arrangements that inflated both income and expenses. Management responded confidently across all areas, providing detailed technical explanations on mining grades, production economics, and strategic rationale for consolidating expansion plans. The CFO was particularly forthcoming with specific numbers on hedging positions, cost breakdowns, and financial metrics. Management emphasized their comfort with current cash generation supporting both dividends (maintaining 30% payout policy) and growth capex ($500-600 million for FY27) without requiring debt. On the expansion front, management showed urgency and conviction, noting that commercial processes are advanced and major equipment orders imminent. Overall, management successfully conveyed a narrative of a company firing on all cylinders operationally while positioning for significant long-term growth, though some analysts appeared to want more aggressive silver production targets and clarity on the opportunity cost of conservative hedging.