Editors Choice

3/recent/post-list

Search This Blog

Hindustan Zinc Share Falls 3% Despite ₹10 Dividend – What Investors Must Know



🔷 Hindustan Zinc Announces First Interim Dividend for FY26

In a major update for shareholders, Hindustan Zinc Ltd (HZL) declared its first interim dividend of FY26 at ₹10 per equity share (500% on face value ₹2). The record date for the dividend payout is set for Tuesday, June 17, 2025. This move highlights the company’s continued focus on delivering value to its investors through consistent dividends.

Despite this announcement, Hindustan Zinc share price dipped by 2.62% on the NSE, touching an intra-day low of ₹520.25, indicating a profit-booking phase post the recent rally.

📊 Strong Q4 FY25 Results: Record PAT of ₹3,003 Cr

In the March 2025 quarter, Hindustan Zinc posted a 47.3% jump in net profit to ₹3,003 crore, compared to ₹2,038 crore in the same quarter last year. The total income surged to ₹9,314 crore from ₹7,822 crore in Q4FY24, making it the best-ever Q4 profit for the company.

According to CFO Sandeep Modi, Hindustan Zinc has maintained robust fundamentals despite global economic headwinds. With a strong balance sheet and cost-efficient operations, the company is strategically positioned to continue delivering industry-leading returns.

📉 Hindustan Zinc Share Price Movement

Hindustan Zinc shares have seen strong momentum in recent weeks:

  • ✅ Up 9.61% in the past week
  • ✅ Gained 14.36% in June 2025 (MTD)
  • ✅ Up 17.71% YTD
  • 📉 Fell 2.43% on June 11 post-dividend announcement

The stock made a 52-week low of ₹378.15 on March 3, 2025, and a 52-week high of ₹717 on July 8, 2024. As of June 11, 2025, market capitalization stands at around ₹2.2 lakh crore.

🏭 About Hindustan Zinc (HZL)

Hindustan Zinc Ltd is India’s largest and the world’s second-largest integrated zinc producer. The company is a subsidiary of Vedanta Ltd, which holds a 64.9% stake, while the Government of India holds 29.5% (as of December 2023).

HZL dominates 75% of India’s primary zinc market and is among the top 5 silver producers globally, with an annual capacity of 800 metric tonnes.

Key operations span across:

  • Zinc & lead mines: Rampura Agucha, Zawar, Rajpura Dariba, Sindesar Khurd, Kayad
  • Smelters: Debari, Chanderiya, Dariba
  • Silver refinery: Pantnagar
  • Wind energy: 273.5 MW across 5 states
  • Fertilizer and alloy projects: under HZFPL and HZAPL

📈 Financial Highlights

  • FY23 Revenue: ₹34,098 crore (up 16% YoY)
  • FY23 Net Profit: ₹10,511 crore (vs ₹9,629 crore in FY22)
  • EBITDA FY23: ₹17,590 crore
  • EPS FY23: ₹24.88
  • EBITDA Margin: 52%

HZL became REACH-certified in FY23, enhancing its global market access, especially in Europe and the U.S.

📌 Conclusion

Despite a minor dip in share price, Hindustan Zinc remains fundamentally strong, backed by consistent earnings, a diversified portfolio, and strong dividend payouts. The stock remains attractive for long-term investors seeking stable returns, particularly in the zinc, silver, and renewable energy sectors.