Hindustan Zinc Chairperson
Priya Agarwal Hebbar has called for a broader definition of mining, with the
industry’s role extending beyond extracting and processing minerals to building
industrial ecosystems around the resources it produces.
In her Q1 FY27 letter to
shareholders, she outlined a vision in which mining companies will increasingly
be defined not only by the resources they own, but by the capabilities,
industries, partnerships and innovations they build around them.
“Mining has always created
value from the resources beneath the ground. Increasingly, it must also create
value through the industries, partnerships and innovations that grow around
those resources,” she said.
This philosophy is reflected
in Hindustan Zinc’s Zinc Parks initiative, through which the company is seeking
to strengthen downstream manufacturing, support MSMEs and expand the
applications of zinc.
“The same philosophy
underpins our Zinc Parks initiative. By strengthening downstream manufacturing
ecosystems, supporting MSMEs, and expanding zinc applications, we are creating
greater value across the entire value chain,” Hebbar said.
She also placed this
approach within the context of India’s evolving resource and industrial
requirements.
“India's next phase of
growth will require a broader and more resilient critical minerals ecosystem.
Our entry into rare earth elements marks an important step in building those
capabilities,” she said.
The Chairperson indicated
that the basis of leadership in the mining sector is also changing, with
capabilities built around resources becoming increasingly important.
“The opportunities ahead are
significant. As demand for critical minerals accelerates, the companies that
lead this industry will be defined not only by the quality of their resources,
but by the capabilities they build around them,” she said.
The strategic direction was
articulated alongside Hindustan Zinc’s strongest-ever quarterly financial
performance. In Q1 FY27, the company reported its highest-ever quarterly
revenue of ₹13,747 crore, up 77 percent year-on-year, and an all-time high
quarterly EBITDA of ₹8,074 crore, up 109 percent year-on-year, with an
industry-leading EBITDA margin of approximately 59 percent.
Profit after tax reached a
record quarterly level of ₹5,469 crore, up 145 percent year-on-year, while free
cash flow before growth capex stood at ₹5,253 crore. The company also achieved
its lowest quarterly zinc cost of production, excluding royalty, since its
transition to underground mining, at US$851 per tonne, and recorded its
best-ever first-quarter mined metal production of 268 kt.
For decades, the company’s
metals have supported India’s infrastructure and industrial development. Hebbar
said Hindustan Zinc was now preparing to address a broader set of resource
requirements.
“We are preparing to produce
more…not only zinc, silver and lead, but also critical minerals that will be
essential to the industries and technologies of the future,” she said.