Hindustan Zinc Share Price Surges Over 2%; Targets 2x Production by 2030, Weighs Demerger Revival

Written by: Team Angel OneUpdated on: 27 Apr 2026, 3:40 pm IST
Hindustan Zinc Limited plans capacity expansion, the company has reported record FY25-26 earnings, supported by strong silver prices.
Hindustan Zinc Share Price
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Hindustan Zinc share price is expected to remain in focus after the company outlined its next phase of expansion while also reporting record financial performance, signalling strong operational momentum, as per The Economic Times report. 

Capacity Expansion Roadmap 

As per chief executive officer Arun Misra, the company is preparing to announce the next phase of its growth strategy by July–August. Hindustan Zinc aims to significantly scale up its production capacity over the next few years, targeting a near doubling of output by the end of the decade. 

The company currently operates at a total capacity of 1.13 million tonnes, including around 919,000 tonnes of zinc. It has already announced an additional 250,000 tonnes of capacity, expected to be operational by FY29. In the upcoming phase, it plans to add roughly 650 KT through new smelting and processing facilities. 

Future Capacity Targets and Capex Plans 

Looking ahead, the company has outlined a roadmap to reach 1.59 million tonnes of refined zinc capacity and 410,000 tonnes of lead capacity by 2030. 

Silver production is also expected to see a substantial increase, rising to 1,500 tonnes annually from current levels of around 800 tonnes. 

On the investment front, Vedanta is expected to allocate $500-600 million towards growth projects in the current financial year, alongside $400-450 million for maintenance, taking the total capital expenditure beyond $1 billion. 

Demerger Outlook and Strategic Flexibility 

As per the report, discussions around a potential business demerger may resurface once Vedanta completes its ongoing restructuring exercise.  

Earlier proposals to split the business had faced resistance, particularly from the government, which holds a 27.92% stake, citing concerns around minority shareholder interests. 

Management indicated that any further discussion on this front would depend on the progress of the parent company’s restructuring. 

Financial Performance and Outlook 

The company reported strong earnings momentum, with the Q4 FY26 delivering record results. Profit for the quarter rose sharply to ₹5,033 crore, while revenue climbed to ₹13,544 crore. EBITDA also saw robust growth, reaching ₹7,747 crore, with margins expanding to 57%. 

For FY26, Hindustan Zinc posted its highest-ever annual performance, with profit at ₹13,832 crore and revenue at ₹40,844 crore. EBITDA stood at ₹22,162 crore, supported largely by strong silver prices, which contributed a significant share to overall profitability. 

For FY27, the company has guided refined metal production of around 1.1 million tonnes along with silver output of approximately 680 tonnes. 

Read More: Hindustan Zinc Share Price in Focus on Q4 FY26 Earnings Results: Net Profit up 68% YoY! 

Hindustan Zinc Share Price Performance 

As of 27 April 2026, at 9:44 AM, Hindustan Zinc share price is trading at ₹605.45 per share, reflecting a surge of 2.91% from the previous closing price. 

Conclusion 

Hindustan Zinc’s expansion plans combined with strong earnings performance highlight a growth-driven strategy, with capacity additions and favourable commodity trends expected to support future momentum. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Apr 27, 2026, 10:08 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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