!hind Hindustan Zinc Ltd: Record Earnings, Massive Expansion & Strong Interim Dividend

📊 Key Highlights from H1 FY26 1. Strong Q4 FY25 Performance Net profit surged ~47% YoY to an all-time Q4 high of ~₹3 003 crore. Revenue climbed ~21% YoY to ~₹8 830 crore, with EBITDA margin expanding past 51%. Production volumes reached record highs: mined ~1 095 KT and refined ~1 052 KT across FY25. 2. ₹10/share Interim Dividend First interim dividend approved at ₹10/share (~500% on ₹2 FV), with record date set for June 17, 2025. Total payout to equity shareholders amounts to ~₹4 225 crore. 3. Massive ₹12 000 Crore Capacity Expansion Board greenlit a ₹12 000 crore capex project over 36 months to double zinc, lead & silver output. New integrated metals complex (~250 KT) to be built in Rajasthan; funded via internal accruals and debt. 4. Shareholder and Market Response Stock rallied ~5% in June ahead of dividend approval, then fell ~4–5% after capex announcement, reflecting mixed investor sentiment. Dividend yield (~3.6%) notably surpasses mining sector average, though payout ratio indicates strong cash flow utilization. 🔍 Outlook & Strategic Implications Growth Catalysts: Doubling production capacity and sustained cash flow position HZL for long-term volume and margin growth. Earnings & Valuation: Interim dividend signals confidence in underlying profitability; maintaining premium valuation in the metals sector. Execution Risk: Monitoring construction and cost efficiency of the new smelting plant will be critical to realizing expansion benefits. ✅ Conclusion: Hindustan Zinc is on a strong growth trajectory with record Q4 earnings, a generous dividend to shareholders, and an ambitious capacity expansion plan. Execution of the ₹12 000 crore project will be the key driver to watch over the next 3 years.