India's Hindustan Zinc Sees Strong 2025 Growth on Higher Volumes, CEO Says

Hindustan Zinc, India's largest and only integrated producer of zinc, lead, and silver, is poised for a strong 2025 as it expects higher volumes and rising metal prices to drive growth. The company, majority-owned by metals-to-oil conglomerate Vedanta, reported a 32% jump in net profit to ₹2,678 crore in the fourth quarter, up from ₹2,028 crore in the year-ago period. Revenue from operations increased to ₹8,614 crore, up from ₹7,310 crore in the same quarter in the previous fiscal, marking an 18% increase year-over-year (YoY).

The company's CEO, Arun Misra, attributed the strong performance to the completion of maintenance shutdowns and proprietary maintenance in the first three quarters, which allowed for a stellar fourth quarter based on the company's numbers. Hindustan Zinc also benefited from higher domestic zinc prices, which rose in tandem with global prices as China, the world's biggest producer of the refined metal, continued to face a supply crunch.

Misra expects zinc prices to rise to $2,850-$2,950 a ton in the coming days from the current $2,800, and silver to trade between $30 and $31 per ounce. The company is also planning to restart discussions with the Indian government about splitting the company into two units in the near-term, as it did last year. However, the government rejected the proposal as the miner's largest minority shareholder was not convinced that such a move would boost shareholder value.



Hindustan Zinc is also focusing more on critical minerals in India and is open to buying assets in Southeast Asia or neighboring regions to expand its operations. The company has already engaged consultants to ramp up its capacity and is looking for opportunities to invest up to $2 billion (around ₹17,000 crore) in this expansion. The company's Chairperson, Priya Agarwal Hebbar, stated at the World Economic Forum 2025 in Davos, "Vedanta 2.0 is going to be committed to transition metals, critical minerals, energy, and technology. We are here to support that in a new avatar."

In conclusion, Hindustan Zinc's strong fourth-quarter performance and positive outlook for 2025 indicate that the company is well-positioned to capitalize on higher volumes and rising metal prices. The company's focus on critical minerals and potential expansion in Southeast Asia and neighboring regions also present exciting growth opportunities. Investors should keep a close eye on Hindustan Zinc as it continues to execute its strategic priorities and drive operational excellence.