Hindustan Zinc has set April 30 as the record date for its first interim dividend of ₹11 per equity share for the ongoing FY27, making today the last date for interested investors to buy the shares of the company to be eligible for the dividend payment. According to reports from The Economic Times, the Vedanta Group company announced that the 550% interim dividend on a face value of ₹2 per share will lead to a total payout of ₹4,648 crore. Shareholders whose names appear in the company's records on April 30 will be eligible to receive the dividend, with the ex-date also set for April 30, 2026. Investors must purchase shares before this date to qualify for the dividend, as shares bought on or after April 30 will not be credited to their accounts by the record date. The dividend will be paid within the timelines prescribed under applicable laws.
The dividend announcement came along with the firm's Q4 earnings announcement, where Hindustan Zinc reported a 68% year-on-year jump in consolidated net profit at ₹5,033 crore for the January-March quarter of FY26, compared to ₹3,003 crore in the year ago period. As reported by The Economic Times, the Vedanta-arm's revenue meanwhile rose 49% YoY to ₹13,544 crore during the quarter under review. This strong performance follows the company's history of rewarding shareholders, with Hindustan Zinc having announced 44 dividends since 2001 and maintaining a dividend yield of 1.6% at the current market price. The company achieved its lowest-ever cost of production at $903 per tonne during the quarter, driven by lower power costs due to higher domestic coal usage and softened coal prices.
Hindustan Zinc achieved record operational milestones during Q4FY26, with mined metal production reaching 315 Kt, the best ever quarterly performance, up 14% QoQ and 2% YoY. Refined metal production also hit a record quarterly level of 282 Kt, up 5% QoQ. The company's refined zinc production stood at 227 Kt, up 6% YoY. CEO Arun Misra highlighted the company's achievement of crossing 1.1 million tons of mined metal while sustaining over 1 million ton of refined metal production for the fourth consecutive year. The company reported record ore resources and reserves of 468.6 million tons with 25 years plus of mining life and highest ever metal reserves of around 14 million tons.
Hindustan Zinc shares have gained around 5% in one week and more than 21% in one month, according to The Economic Times. The stock has jumped 36% in one year, buoyed by the strong surge in silver prices. In the longer term, the shares have jumped more than 96% in three years and over 100% in five years. The company's parent company, Vedanta, is also known for its high dividend payouts, with Hindustan Zinc paying interim dividends of ₹10 (May 2024) and ₹19 (August 2024) in FY25, along with prior payouts of ₹6 and ₹7 in the early part of FY 2023–24. For investors holding 100 shares, the total dividend income would be ₹1,100 with the ₹11 per share dividend.
Management provided comprehensive guidance for FY27, expecting mined metal production of 1,150 KTPA (plus or minus 10 KT) and refined metal production of 1,100 KTPA (plus or minus 10 KT), with refined silver production of 680 tons (plus or minus 10 tons). The company is making steady progress on the 250,000 tons per annum integrated zinc smelter at Debari, with site mobilization complete and detailed engineering largely finalized. Planned capital expenditure for FY27 is in the range of $500 million to $600 million towards announced growth projects. Additionally, the company's Co-CEO has announced plans to add three new rare earth metals to the company's portfolio over five years through exploration of 10 mineral blocks, representing a strategic shift toward capturing opportunities in the growing rare earth metals market.
