Hindustan Zinc Limited — Credit Ratings, 09-08-2025: Credit Rating

CRISIL Ratings has reaffirmed Hindustan Zinc's 'CRISIL AAA/Stable' long-term and 'CRISIL A1+' short-term ratings for its bank facilities and existing debt programs, while assigning 'Crisil AAA/Stable' to new Rs. 1,147 crore Non-Convertible Debentures. This reaffirmation stems from HZL's dominant domestic market position, highly efficient operations (boasting a global first quartile cost of production at USD 1,010/tonne in Q1FY26), and a robust financial profile. The company delivered strong FY25 performance with a 25% EBITDA growth to Rs 17,388 Cr and record metal production. Despite substantial dividend payouts, HZL maintains strong liquidity with Rs 9,340 Cr in cash/investments and a low 0.1x net leverage. These strong ratings should ensure favorable borrowing costs and enhance investor confidence.