Hindustan Zinc’s Output Slips: Silver and Refined Metal Production Dip in Q1 FY26

Hindustan Zinc Ltd (HZL), India’s largest zinc producer and a global silver heavyweight, reported a year-on-year decline in both saleable silver and refined metal production for the first quarter of FY26. The company’s saleable silver output dropped to 149 metric tonnes, while refined metal production stood at 250 kilotonnes (KT), marking a 5% YoY decline.

 

The dip in silver output is attributed to lower lead production and a shift in mining sequence, particularly at the SK mine, which yielded lower silver content. Meanwhile, the decline in refined metal volumes reflects scheduled maintenance activities and temporary plant shutdowns, despite improved ore grades and mill recovery.

 

Key Highlights:

 

Saleable silver production fell to 149 MT, down from 177 MT in the same quarter last year.

Refined metal output declined 5% YoY to 250 KT, despite sequential gains from Q4 FY25.

Refined zinc production stood at 214 KT; refined lead at 56 KT, both marginally lower YoY.

Mined metal production, however, hit a record 310 KT, up 17% QoQ, driven by higher grades and output from Agucha and Zawar mines.

Wind power generation surged 33% QoQ to 63 million units, aiding sustainability goals.

The company reaffirmed its FY26 guidance of 1,100–1,125 KT mined metal and 750–775 MT silver output, banking on full ramp-up of commissioned projects.

 

Despite the quarterly softness, HZL remains optimistic about meeting its annual targets, supported by operational efficiencies and a robust project pipeline.

 

Sources: Economic Times Manufacturing, Hindustan Zinc official site, The Week