Hindustan Zinc plans to double its production capacity by 2030.
Talks about a potential demerger could resume once parent Vedanta completes its own restructuring.
The company reported strong quarterly results, boosting confidence in its growth strategy.
Hindustan Zinc is preparing to announce the next phase of its growth strategy by July-August, with its CEO Aru Misra also signalling that discussions around a demerger could return to the table once parent company Vedanta completes its own demerger process.
The demerger conversation is not new. In 2023, Hindustan Zinc's board had proposed splitting the business into separate verticals, but the plan was blocked by the government, which holds a 27.92% stake in the company, citing concerns over potential disadvantages to minority shareholders. With Vedanta's demerger now underway, the door appears to be reopening.
1 April 2026
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Doubling Capacity by Decade's End
India's largest producer of zinc and silver currently has a total production capacity of 1.13 million tonnes, of which 919,000 tonnes is dedicated to zinc. The company aims to double this by 2030.
In 2025, Hindustan Zinc announced an addition of 250,000 tonnes of capacity, expected to be commissioned by fiscal 2029. The next phase will add approximately 650,000 tonnes, covering a new smelter and additional mills, Misra told the Economic Times.
By 2030, the company targets a refined metal capacity of 1.59 million tonnes for zinc and 410,000 tonnes for lead. Silver production capacity is also set to nearly double, rising from 800 tonnes currently to 1,500 tonnes per annum.
On capital expenditure, Vedanta plans to spend $500-600 million on growth projects this fiscal, alongside $400-450 million in maintenance capex, taking total spending beyond $1 billion for the year.
Notably, Hindustan Zinc just posted its quarterly results for the quarter ending March 2026. It reported a 67% jump in net profit for the March quarter, coming in at ₹5,033 crore. Revenue surged 49% to ₹13,544 crore, while EBITDA rose 60% to ₹7,706 crore, with margins improving to 56.9%.
Despite the strong numbers, the stock slipped over 2% following the results, though it has gained 17% over the past month. The company also declared an interim dividend of ₹11 per share, with April 30 set as the record date.
