Hindustan Zinc to Review First Interim Dividend for FY25-26 Amid Strong Quarterly Performance

Hindustan Zinc Board to Consider First Interim Dividend for FY25-26

Hindustan Zinc Ltd is scheduled to hold a board meeting today to consider the declaration of the company’s first interim dividend for the financial year 2025–26. Ahead of the meeting, the company’s stock gained over 1.25% to ₹540.55, reflecting growing investor anticipation. The record date for the proposed dividend has been set for June 17, 2025.

Key Financial Highlights (March Quarter FY25):

• Revenue stood at ₹9,087 crore, marking a 20% year-on-year increase.

• Net profit rose 47% year-on-year to ₹3,003 crore.

• EBITDA reached ₹4,820 crore, a 32% rise compared to the previous year.

• EBITDA margin expanded by nearly 500 basis points to 53%.

The company last announced a dividend in August 2024, with an interim payout of ₹19 per share. The stock has shown a significant recovery since hitting its 52-week low of ₹378.65 in March 2025, although it remains approximately 33% below its 52-week high of ₹717.10 recorded in July 2024.

Shareholding Pattern (as of March 2025):

• Promoter (Vedanta Ltd): 63.42%

• Government of India: 27.92%

• Retail Shareholders: 2.48%

Vedanta Ltd received a substantial dividend payout of ₹5,091 crore from Hindustan Zinc last year, underscoring the company’s commitment to returning value to its stakeholders.

Brokerage Views:

• JM Financial maintains a 'Buy' rating with a target price of ₹530.

• Nuvama Institutional Equities recommends 'Reduce' with a target of ₹403.

• Kotak Institutional Equities rates the stock as 'Sell' with a target price of ₹350.

• Dolat Capital has initiated a 'Buy' rating with a target price of ₹564, citing Hindustan Zinc’s global leadership in integrated zinc production and its expansion plans.

Looking forward, Hindustan Zinc aims to increase its base metal production capacity to 2,000 ktpa and expand silver production by FY30. The company also continues to focus on lowering zinc production costs to further enhance profitability and global competitiveness.

Stakeholders and market participants await the board’s resolution on the interim dividend, which could signal the company's strong financial positioning and strategic direction for FY26.