Hindustan Zinc Ltd. achieved its highest-ever first-quarter mined metal production for the fifth consecutive year, with output rising 1% year-on-year to 268,000 kt in the quarter ended June 30, 2026. According to the company's quarterly production update filed with exchanges, this milestone was driven by better ore grades at the company's operations and enhanced mill recovery rates. The achievement represents a significant operational milestone for the mining company, marking another quarter of record-breaking performance and demonstrating the company's consistent ability to deliver strong production results. The sustained volume growth reinforces HINDZINC's position as a low-cost producer with a strong resource base, providing operational consistency that acts as a floor for margins even if LME zinc prices face macro headwinds. However, the production showed 15% quarter-on-quarter decline from 315 kt in Q4 FY26, indicating typical quarterly volatility in mining operations.
Saleable refined metal production increased 4% from a year earlier to 260,000 kt, supported by capacity unlocked through debottlenecking initiatives at the Chanderiya and Dariba plants. As reported by the company, these operational improvements helped drive the overall production growth despite some planned maintenance activities. The gains were partially offset by planned maintenance at the 160 ktpa Debari roaster, which impacted production levels during the quarter. Refined zinc production was the standout performer, climbing 6% year-on-year to 213 kt, indicating higher conversion efficiencies at smelters and successful debottlenecking efforts. However, refined lead production declined 2% to 47 kt, showing mixed performance across different metal segments. This volume growth helps offset potential fluctuations in global zinc prices by maintaining a higher scale of operations, with higher refined zinc output typically leading to better revenue realization compared to selling concentrates. On a sequential basis, refined zinc production fell 6% quarter-on-quarter from 227 kt in Q4 FY26.
Silver production remained largely stable at 149 tonnes (4.8 million ounces) compared with the year-ago period, showing resilience in the precious metals segment despite no growth. Wind power generation stood at 133 million units, marginally lower than 134 million units reported in Q1FY26, which the company attributed to wind velocity and seasonality impacts. However, wind power generation showed 138% quarter-on-quarter growth from 56 million units in the March quarter of FY26, indicating strong sequential recovery. In the March quarter, mined metal production was significantly higher at 315,000 kt, while saleable metal production reached 282,000 kt and silver production came in at 176 tonnes. The mixed performance across different metal segments highlights varying operational challenges during different quarters, though silver production remains a high-margin contributor that cushions the impact of fluctuating zinc prices.
In an earlier development on June 22, the company signed a memorandum of understanding with Advantek Associates LLP and Aero Eagle Automobiles Pvt Ltd to explore the adoption of green hydrogen and other clean energy solutions across its operations. The collaboration aims to evaluate innovative technologies supporting the transition towards low-carbon and future-ready mining. The initiative will begin with technical, operational, safety, environmental and financial feasibility studies covering green hydrogen generation, storage, dispensing infrastructure and hydrogen-powered equipment. The assessment will also examine the use of hydrogen internal combustion engine (H2-ICE) and fuel cell technologies in mining and industrial operations. This comprehensive approach forms part of the company's strategy to develop low-carbon mining operations and aligns with its target of achieving net-zero emissions by 2050 or earlier. Additionally, HINDZINC recently focused on decarbonizing operations by signing a long-term power delivery agreement for 450 MW of renewable power, maintaining its status as the world's 3rd largest silver producer and consistently contributing to its parent company Vedanta's deleveraging goals.
Despite strong operational performance, the company's shares witnessed a sharp correction in June, falling 16%, marking their second-biggest monthly decline in 2026. However, Hindustan Zinc shares jumped over 3% on Friday, extending sharp gains for the second consecutive session and adding around ₹6,815 crore to its market value as soaring silver prices, weaker dollar, and Q1 business update boosted market sentiment. The stock traded at ₹544.80 per equity share on NSE on Friday morning, reaching the highest level seen in more than a week. The rally was fueled by dollar tumbles and soaring silver prices, with silver futures with December expiry gaining 2.5% to ₹2,44,678 per kg. The correction was primarily driven by sustained drop in global silver prices, with the company being particularly sensitive to fluctuations in silver prices given the metal's significant contribution to revenue and profitability. However, the record production volumes of 268 KT and 6% growth in refined zinc production indicate strong operational momentum and potential for margin expansion if cost of production remains stable. The focus now shifts to the cost of production trajectory, which typically inversely correlates with volume growth, and the company's ability to capture domestic infrastructure demand effectively through continued volume expansion. The global zinc market is navigating a phase of moderate supply constraints from major mines in Europe and Australia, which benefits integrated players like HINDZINC, while domestically the push for galvanized steel in infrastructure and renewable energy sectors continues to drive steady demand for refined zinc. As of July 3, 2026, HINDZINC has a total market capitalisation of ₹2.28 lakh crore according to NSE data.
