Hindustan Zinc Plans ₹5,000 Crore Capex as Strong Earnings Support Long-Term Expansion

Hindustan Zinc Ltd is set to invest $500–600 million (around ₹5,000 crore) in capital expenditure during FY27, reinforcing its long-term growth strategy in mining and metals. According to the company's management, around 80% of the planned investment will be directed towards ongoing projects, while the remaining 20% will fund new projects expected to be announced soon. The company currently has an expansion pipeline of 1 million tonnes of capacity, of which 250,000 tonnes has already been approved with an investment of ₹12,000 crore across mining and mineralisation. Orders for mining equipment have already been placed, construction of the smelter is underway, and orders for milling and concentrate facilities are yet to be finalised. To achieve its full expansion target, Hindustan Zinc expects investments of a similar scale over the next four to five years, with annual capital expenditure estimated at ₹7,000–8,000 crore, although only 15–20% of this multi-year spending is expected to translate into cash outflows in FY27. The company's strong financial performance provides support for these expansion plans, with Q1 net profit more than doubling to ₹5,469 crore, revenue increasing 77% to ₹13,747 crore, and EBITDA rising to ₹8,050 crore from ₹3,859 crore a year ago. EBITDA margin improved to 58.6% from 49.7%, while the quarterly zinc cost of production declined 16% year-on-year to a record low of $851 per tonne, reflecting improved operational efficiency. Overall, the company's investment roadmap and operational performance indicate a continued focus on expanding production capacity while maintaining cost competitiveness. $HINDZINC Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.