Hindustan Zinc 1Q’FY27: In-line quarter; Growth projects on-track

Research evidence excerpt

Hindustan Zinc 1Q’FY27: In-line quarter; Growth projects on-track

iQprofile SM Hindustan Zinc

Key Income Statement Data (Mar) 2025A 2026A 2027E 2028E 2029E Company Sector

(Rs Millions) Non-Ferrous-Aluminum & Light Metals

Sales 340,830 408,440 488,258 466,393 456,820

Gross Profit 287,040 350,550 424,666 396,829 380,608

Sell General & Admin Expense (14,320) (13,310) (14,088) (14,848) (15,594) Company Description Operating Profit 137,480 182,740 237,221 208,883 183,903

Net Interest & Other Income (1,120) 2,090 310 (5,128) (10,988) Hindustan Zinc (HZ) is the sole producer of zinc, lead and

Associates NA NA NA NA NA silver in the country with operations mainly in the

Pretax Income 136,360 184,830 237,531 203,755 172,915 Rajasthan province. HZ is a top ten producer of both zinc

Tax (expense) / Benefit (32,000) (46,760) (59,103) (50,699) (43,025) and lead and also a key producer of silver, globally. Company

Net Income (Adjusted) 104,360 138,070 178,428 153,056 129,890

is self-sufficient in its mined feed and sources its power

Average Fully Diluted Shares Outstanding 4,225 4,225 4,225 4,225 4,225

requirements from captive power assets. Initially a state-

Key Cash Flow Statement Data

run entity, HZ was privatized in early 2000s. Currently, HZ

Net Income 104,360 138,070 178,428 153,056 129,890

operates as a 61.84%-owned subsidiary of Vedanta Ltd and Depreciation & Amortization 36,400 37,900 40,529 42,103 48,399

Change in Working Capital 3,430 (420) 1,417 (388) (170) is listed on both BSE and NSE.

Deferred Taxation Charge 260 (770) 0 0 0

Other Adjustments, Net (260) 770 0 0 0

Cash Flow from Operations 144,190 175,550 220,374 194,771 178,119 Investment Rationale

Capital Expenditure (40,060) (52,750) (88,350) (93,000) (86,490) Our Underperform rating on HZ is premised on premium