Hindustan Zinc Ltd (HZL) is basically the landlord of India’s zinc market — a 75% monopoly disguised as a listed company. Add a dash of silver (3rd largest globally), some lead (14% of revenue), and a fat dividend yield of ~6.8%. Oh, and did we mention the promoters have pledged 92% of their holdings? Yes, the family silver is literally mortgaged. Investors call it “Vedanta’s ATM.”
2. Introduction
Picture Udaipur: lakes, palaces, tourists, and then… an entire city called Zinc City. That’s right, HZL has made Rajasthan’s soil so productive that even Maharana Pratap would’ve dropped his sword and picked up a mining license.
But behind this glittering silver lining is a corporate soap opera. Vedanta, the step-parent promoter, keeps treating HZL like a cash cow in a family business feud. The Government of India, once the reluctant co-owner (29.5% stake), has finally decided: “Beta, shaadi ho gayi, ab nikal jao” — strategic disinvestment underway.
Financially, HZL is a beast: 1.2 MTPA mined metal capacity, 913,000 TPA zinc smelting, 210,000 TPA lead, and 800 TPA silver. Throw in the world’s largest underground zinc mine at Rampura Agucha, and you have a monopoly so strong it makes Ambuja and Ultratech look like side hustlers.
Yet the market isn’t exactly throwing confetti. Why? Because while HZL makes tonnes of cash, the parent (Vedanta) is perpetually in need of cash. Investors fear dividends are less “generous” and more “forced liquidation.” Add the 92% pledge over promoter holding, and you realize: this is less about metals, more about leverage yoga.
3. Business Model (WTF Do They Even Do?)
HZL digs holes in Rajasthan, pulls out zinc, lead, and silver, smelts them, sells them globally, and then pays out fat dividends. That’s it. Their real USP? They’re the lowest cost zinc producer in the world thanks to high-grade ore and backward integration. When China sneezes, HZL sneezes in profit.
Revenue Mix (FY24):
Zinc – 62%
Silver – 19% (the “shiny side hustle”)
Lead – 14%
Others – 5% (aka corporate accounting leftovers).
Exports are 25% of turnover. Rest is Indian infrastructure binge. Every bridge, every car, every “Make in India” screwdriver probably has a piece of HZL inside it.
Power? No problem. They’ve got captive thermal plants plus some wind farms to virtue-signal ESG investors. And now they’ve inked 450 MW renewable power delivery agreements with Serentica. Translation: “We’re mining responsibly, don’t cancel us on Twitter.”
4. Financials Overview
Let’s slice the Q1 FY26 onion (Jun’25 quarter).
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹7,771 Cr
₹8,130 Cr
₹9,087 Cr
-4.4%
-14.5%
EBITDA
₹3,859 Cr
₹3,946 Cr
₹4,820 Cr
-2.2%
-20.0%
PAT
₹2,234 Cr
₹2,345 Cr
₹3,003 Cr
-4.7%
-25.6%
EPS (₹)
5.3
5.6
7.1
-4.7%
-25.5%
Annualised EPS = ₹21.2. At CMP ₹427, the recalculated P/E = ~20.1x. (Screener’s 17.5x was being too generous —
