Hindustan Zinc Limited — Investor Meet, 23-06-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Hindustan Zinc has announced a board meeting to approve the 2x Growth Project aimed at doubling metal capacity to 2 million tons by 2030 with an investment of around Rs. 12,000 Cr for the initial 250,000-ton expansion. This includes a new 250 KT smelter at Debari, a 2.4 million tons concentrator, and infrastructure upgrades, bringing total metal capacity to about 1.38 million tons and mining capacity to 1.5 million tons per annum. The project targets a steady-state revenue of Rs. 60,000 Cr and EBITDA of Rs. 34,000 Cr, maintaining industry-leading ~50% margins, with an estimated payback of 4-5 years post-completion. Expansion CAPEX will be phased over 3-5 years and funded through a mix of debt and internal accruals without compromising dividend commitments. Management highlighted strong domestic zinc demand driven by India’s steel industry growth and emphasized low-cost leadership and sustainability, including 70% renewable energy use by FY28. Further expansion phases, including lead capacity and increased silver production to 1,500 tons, will be announced within 1-2 months and completed by FY31, maintaining a 75-80% domestic market share.