- You could capture upside from India’s fastest‑growing zinc miner.
- Revenue rose 27% YoY; net profit surged 34% YoY.
- New ₹1,400 cr non‑convertible debentures may boost balance‑sheet strength.
- Sector tailwinds: rising zinc demand for green energy and EV batteries.
- Peers like Vedanta and Hindalco are repositioning – watch their moves.
You missed the zinc rally—now it’s heating up.
Hindustan Zinc (HINDZINC) surged 5.12% to Rs 702.45 on Friday, riding a wave of robust quarterly earnings and a fresh ₹1,400 cr debenture issuance. The stock, a key component of the Nifty Midcap 150, is flashing a bullish signal that could reverberate across the entire base‑metal universe.
Why Hindustan Zinc’s Earnings Beat Beats Sector Expectations
For the quarter ending December 2025, Hindustan Zinc posted revenue of Rs 10,980 cr, a 27% jump from Rs 8,614 cr a year earlier. Net profit climbed to Rs 3,916 cr, up 46%, while earnings per share (EPS) rose to 9.27 from 6.34. The full‑year results mirror this trajectory: revenue at Rs 34,083 cr (+18%) and profit at Rs 10,353 cr (+33%). These numbers eclipse the average growth rates of the Indian zinc sector, which has been constrained by supply‑side bottlenecks and modest demand growth.
Sector Trends: Zinc’s Role in the Green‑Energy Transition
Global zinc demand is projected to expand at a compound annual growth rate (CAGR) of 4‑5% through 2030, driven by its use in galvanization, renewable‑energy infrastructure, and especially in battery technology for electric vehicles. India’s push for renewable capacity and infrastructure spending amplifies this demand curve. Hindustan Zinc, with integrated mining‑to‑metal operations, is uniquely positioned to capture the upside, unlike peers that rely on external smelters.
Competitor Analysis: How Vedanta and Hindalco Are Responding
Vedanta Ltd., another major zinc producer, reported a modest 12% revenue gain last quarter, but its profit margins are under pressure due to higher energy costs. Hindalco’s aluminium‑focused portfolio is diversifying into zinc through joint ventures, yet its scale remains limited. Both firms are eyeing debt markets for funding, but Hindustan Zinc’s non‑convertible debentures carry a “rated, listed” tag, suggesting lower cost of capital and higher investor confidence.
Historical Context: What Past Zinc Surges Teach Us
In 2018, Hindustan Zinc announced a strategic stake sale to a private equity consortium, triggering a 9% price jump. The rally was short‑lived because the company failed to translate the capital into earnings growth. This time, the surge is backed by concrete top‑line expansion and a disciplined capital‑raising move, reducing the risk of a “pump‑and‑dump” scenario.
Decoding the New Debenture Issue
The board approved up to ₹1,400 cr of unsecured, redeemable, rated, listed, non‑convertible debentures (NCDs). In plain terms:
- Unsecured: No specific assets pledged, but rating agencies have assessed creditworthiness.
- Redeemable: Company can repay at maturity, typically 5‑7 years.
- Non‑convertible: No equity conversion, limiting dilution for existing shareholders.
These NCDs will likely lower the cost of capital, fund expansion of the Zawar and Rampura projects, and improve the debt‑to‑equity ratio, all of which are positive signals for long‑term investors.
Technical Snapshot: What the Charts Are Saying
On the daily chart, Hindustan Zinc broke above its 50‑day moving average (MA) of Rs 665, entering a bullish zone. Volume surged 2.3× the average, confirming buying pressure. The Relative Strength Index (RSI) sits at 62, indicating momentum without being overbought.
Investor Playbook: Bull vs. Bear Cases
Bull Case: Continued revenue acceleration, successful debenture financing, and a favorable zinc price outlook could push the stock toward Rs 800 within 12 months. Investors may consider adding on dips, targeting a 15‑20% upside.
Bear Case: A sudden zinc price correction, higher input costs, or a downgrade of the debenture rating could stall momentum. A break below the 50‑day MA (Rs 665) might trigger a 10% pullback to the Rs 600 level.
Bottom line: Hindustan Zinc’s recent earnings beat, solid balance‑sheet upgrade, and sector tailwinds create a compelling mid‑cap story. Whether you’re a value hunter or a growth enthusiast, the stock warrants a closer look before the next earnings cycle.