Hindustan Zinc plans Rs 50k-crore capex pipeline for next 5 years

Mumbai: Hindustan Zinc is likely to spend Rs 40,000-50,000 crore on capital expenditure over the next five years to double refined metal capacity and ore production, and boost metal reserves more than threefold.

The country’s largest producer of zinc, lead, and silver has already approved a 250,000 tonne integrated zinc smelter, a tailings reprocessing plant, and an exploration programme. These three projects will collectively cost nearly Rs 17,000 crore.

For this fiscal year, Hindustan Zinc has guided for a capex of $500-600 million (Rs 4,763-5,715 crore) for growth projects, and around $400-450 million as maintenance capex, taking its total spend for the year to more than $1 billion, according to the company’s FY26 annual report. It had generated a free cash flow of Rs 13,337 crore last fiscal.


Over the next five years, Hindustan Zinc plans to enhance refined metal capacity to 2 million tonne from 1.1 million tonne currently, while raising the capacity for silver refining to 1,500 tonnes from 800 tonnes currently. Its exploration programme will target expanding reserves to over 50 million tonne from 13 million tonne currently, which is expected to support a mine life of over 25 years, the company said.

Hindustan Zinc is heading into the current fiscal with “cautious optimism”, said Arun Mishra, chief executive officer. “While the global economic environment may remain tepid due to geopolitical uncertainties, the commodity markets are expected to offer upside potential driven by steady demand from key downstream industries,” he said.

India, in particular, will benefit from continued infrastructure investment, rising steel demand, and expanding industrial activity, which will help sustain market momentum and demand for commodities, said Mishra.

He highlighted that a large reserve base, track record for disciplined execution, and a sustained low cost of production will enable Hindustan Zinc to navigate near-term uncertainties and create long-term value for all our stakeholders.

Natural resources conglomerate Vedanta owns a 60.71% stake in Hindustan Zinc, and 27.92% is held by the Indian government. Public shareholders hold a 11.37% stake in the company, which commands a three-fourths share of India’s primary zinc market.