Thank you, operator. Good evening, ladies and gentlemen.

Thank you for joining us today to discuss the first quarter results of FY 2027. In this call, we will refer to our investor presentation available on our company's website.

Please note that today's entire discussion will be covered by the safe harbor clause mentioned on slide two of the presentation. Before we move ahead, would like to update everyone that our board of directors has appointed Mr.

Amarendu Prakash as the CEO and whole-time director of the Hindustan Zinc with effect from 1st August, 2026. Mr.

Prakash is a steel industry veteran with over 30 years of experience at SAIL. He served as chairman and managing director of SAIL from 2023 to 2006, 2026.

During his tenure, he spearheaded key initiatives in operational excellence, capacity expansion, and digital transformation. Today's call is joined by our CEO, Mr.

Arun Misra, CEO designate Mr. Amarendu Prakash, and our CFO, Mr.

Amit Gupta, who will also be interacting with you during the call. As you would have seen from our earlier announcement, Mr.

Amit Gupta has recently been appointed as the Chief Financial Officer of Hindustan Zinc. The management will be discussing the operational and financial updates for the quarter, followed by a Q&A session.

Now I would like to invite Mr. Arun Misra to present the results.

Over to you, sir.

Thank you, Raksha. A very good evening to all of you.

Thank you for joining us today. We are pleased to begin FY '27 with a strong quarter marked by solid operational and financial performance and continued execution of our strategic priorities.

Our integrated business model, industry-leading cost competitiveness, and disciplined approach continues to differentiate us and position us well for long-term value creation. During the quarter, we also achieved a significant milestone in our diversification journey by securing a mining lease of a rare earth elements and yttrium block in Gundlupet, Karnataka, further advancing our ambition of becoming a diversified multimetal enterprise and reinforcing our commitment to supporting India's critical mineral mission.

On the sustainability front, Hindustan Zinc continues to make strong progress against the performance expectations set by the ICMM. During the quarter, following Chanderiya Lead Zinc Smelter, Rampura Agucha mine became the first mine in India to receive the Zinc Mark certification, underscoring our commitment to responsible resource use and lower environmental impact.

Our renewable energy consumption increased to 22%. We deployed India's first 250-metric-tonne electric crane and strengthened our partnership with The Energy and Resources Institute through a 250-hectare natural forest development project at Chanderiya.

We also signed MOUs with Advantec Associates LLP and Aero Eagle Automobiles Private Limited to advance the adoption of green hydrogen and other clean energy solutions. I am pleased to share that these industry-leading sustainability practices have led to Hindustan Zinc's inclusion in the Dow Jones Best-in-Class Emerging Markets Index for the first time, a testament to our unwavering commitment to sustainable value creations, responsible business practices, and ESG excellence.

Our CSR initiatives continue to create meaningful impact across local communities through focused interventions in nutrition, healthcare, education, and sustainable livelihoods, strengthening community resilience and generating long-term social value. During the quarter, we added 1,869 new Nand Ghars across Rajasthan, taking the cumulative total to over 11,000 Nand Ghars.

Moving to the market environment, India continues to remain one of the fastest-growing major economies despite an evolving global backdrop. Manufacturing activity remained in expansion territory during the quarter, supported by resilient domestic demand, sustained government capital expenditure, and continued infrastructure investments.

Against a backdrop of geopolitical uncertainties and evolving trade dynamics, base metal markets remained relatively resilient during the quarter. Zinc averaged 3,466 US dollars per tonne, reaching a high of 3,625 US dollars per tonne, while lead averaged 1,954 US dollars per tonne.

Market fundamentals remained broadly supportive, underpinned by constrained mine supply and steady demand from infrastructure, galvanization, and battery applications. Silver prices moderated during the quarter to $73 per troy ounce compared with the strong levels seen in the previous quarter, reflecting broader macroeconomic and investor positioning factors.

Nevertheless, silver fundamentals remain supported by robust industrial demand from solar, electronics, and electrification applications, alongside continued investment interest. While near-term price movements may remain volatile, the medium-term outlook continues to be constructive, driven by structural demand from the energy transition and relatively constrained global supply growth.

Turning to operational performance, we delivered a strong start of the year with the highest ever first quarter mined metal production of 268,000 tonnes for the fifth consecutive year, alongside refined metal production of 260,000 tonnes, which was up 4% year on year. This growth was driven by better mine grades and the benefit from the 160,000 tonnes per annum roaster, which is now taking care of the additional calcine requirement during the maintenance activities.

The output was further supported by debottlenecking at Chanderiya and Dariba, despite the planned maintenance activities at the lead smelter. On the cost front, despite a volatile geopolitical environment, we achieved the lowest quarterly zinc cost of production, excluding royalty, since underground transition to $851 per tonne, reflecting a decline of 16% year on year.

The reduction was driven by better grades, higher metal production, increased renewable power consumption, and better byproduct realizations, partly offset by higher input commodity prices, especially energy prices, in line with the geopolitical crisis globally. We achieved 149 tonnes of silver production in line with the lead production, and our silver portfolio continues to contribute 46% to overall profitability.

With our continued focus on capitalizing on the favorable price environment and optimizing inventory, during the quarter, we strategically sold 10,000 tonnes of lead concentrate. This combination of lowest cost of production, strong output, and commodity tailwinds translated into an all-time high quarterly financial performance.

During the quarter, we reported highest ever EBITDA of ₹8,074 crore, resulting into record net profit of ₹5,469 crore, making a new milestone for the company. On the growth projects front, we are making steady progress as planned for the 250 ktpa integrated zinc smelter at Debari.

Mine development activities have started for matching the mining capacity. For the tailings reprocessing plant, construction activities have started, and site mobilization for the infrastructure development is completed.

Our other two key projects, that is hot acid leaching plant at Dariba and fertilizer plant at Chanderiya, are on track to be completed by second quarter of the year. Looking ahead, our strategy remains clear and consistent.

We are committed to execute our growth projects with discipline, maintaining our industry-leading cost positions, strengthening our resource base, and prudently allocating capital to maximizing long-term returns. The strong start to FY '27 reinforces our confidence in the execution of our strategy.

As demand for zinc, silver, and critical minerals continue to be supported by global megatrends, we believe Hindustan Zinc is well positioned to deliver sustainable growth, resilient cash flows, and long-term value creations for our shareholders. As I conclude, I would like to express my heartfelt gratitude to our shareholders, employees, customers, business partners, and all our stakeholders for their unwavering trust and support throughout my tenure.

It has been an absolute privilege to lead Hindustan Zinc and be part of its remarkable transformation and growth journey. As shared earlier, Mr.

Amarendu Prakash will now take over the responsibility of leading Hindustan Zinc. Having worked closely with him, I am fully confident that his vision, deep industry expertise, and proven leadership will guide the company to even greater heights.

On a personal note, it has truly been an honor to serve Hindustan Zinc. I leave with immense pride in what we have accomplished together and with great optimism for the company's future.

I sincerely thank each one of you for your trust, encouragement, and partnership throughout this journey. I wish Amarendu and the entire Hindustan Zinc team and all our stakeholders continued success in the years ahead.

With this, I now hand over to Amit for an update on the financial performance.

Thank you, Mr. Misra.

Good evening, everyone. The global macroeconomic environment continues to be influenced by geopolitical development, evolving trade policies, and uneven economic growth.

Despite these challenges, India remains one of the fastest growing major economy, supported by strong domestic demand and infrastructure investments and a stable policy framework. While commodity market may remain sensitive to global developments in the near term, the long-term outlook for our key metal remains positive.

Zinc demand continues to be supported by infrastructure development and galvanized steel consumption, while lead fundamentals remain stable. Silver is benefiting from accelerated adoption across solar, electronics, and other energy transition applications, creating a strong structural demand outlook.

In this environment, Hindustan Zinc's focus on operational excellence, cost leadership, disciplined capital allocation, and a strong balance sheet provides a solid foundation for sustainable growth and superior shareholder returns across commodity cycles. I am pleased to share that we have started FY '27 on a strong note, delivering record financial performance and crossing the ₹8,000 crore quarterly EBITDA milestone for the first time.

This performance reflects our focus on operational excellence and disciplined execution, supported by the benefits of last year's debottlenecking projects, the commissioning of the additional roaster, higher operational efficiency, and the lowest zinc cost of production, excluding royalty, since our underground transition. Silver continues to be a key earning driver during the quarter, contributing approximately 46% of overall profitability and reinforcing its strategic importance to our portfolio.

During the quarter, we delivered our highest ever quarterly revenue from operations of ₹13,747 crore, up 77% year on year, driven by higher metal production, supportive commodity prices, better byproduct realization, lead concentrate sale, and a stronger dollar. We have also delivered the highest ever quarterly EBITDA of ₹8,074 crore, up 109% year on year, with an industry-leading EBITDA margin of 59%.

This performance was further supported by the lowest ever quarterly zinc cost of production, excluding royalty, since our underground transition at $851 per tonne. During the quarter, we also monetized 10 kt of lead concentrate, equivalent to approximately 9 tonnes of silver and 6,000 tonnes of lead metal content.

Reflecting this strong operating performance, we delivered our record quarterly net profit of ₹5,469 crore, up 145% year on year. Our ability to generate strong free cash flow of ₹5,253 crore pre-growth CapEx demonstrate the resilience of our business model, industry-leading cost competitiveness, and disciplined financial management.

This robust cash generation enables us to fund our strategic growth projects, maintain balance sheet strength, and create long-term value for our stakeholders. We ended this quarter with a net cash position of ₹5,572 crore, providing significant financial flexibility to pursue value accretive growth opportunities while maintaining an attractive shareholders' return profile.

Our strong balance sheet, net cash position, and disciplined capital allocation framework position us well to fund future growth while continuing to reward shareholders. Our capital allocation priorities remains unchanged: investing in high-return growth opportunities, maintaining balance sheet strength, and returning surplus cash to shareholders.

Reflecting our confidence in the business and strong cash generation, during the quarter, the company paid its first interim dividend of ₹11 per share, reaffirming our commitment to delivering sustainable shareholders' returns. Beyond the value creation for shareholders, we remain committed to create meaningful value for the broader economy and society.

During the quarter, Hindustan Zinc contributed approximately ₹6,450 crore to the national exchequer through taxes, royalties, duties, and other statutory levies, underscoring our role as a responsible corporate citizen and a significant contributor to India's economic development. Looking ahead, our priorities remains clear: maintaining industry-leading cost competitiveness, executing our growth projects safely and efficiently, preserving balance sheet strength, and delivering superior returns through the cycles.

As we progress on our 2x growth journey and capitalize on the long-term structural demand outlook for zinc and silver, we remain confident in our ability to create sustainable value for all stakeholders. With that, I would like to thank all our stakeholders for their continued trust and support.

I will now hand over the call to the operator for the Q&A session. Thank you.

Good evening, everyone. Congratulations to Mr.

Arun and best wishes to the incoming management team. I had a couple of questions.

First one was on the power and fuel cost. On a sequential basis, it is gone up despite metal production being lower and I think the RE proportion of energy also was better compared to the fourth quarter.

Any particular reasons for the increase in power and fuel cost on a sequential basis?

The power and fuel cost during the quarter has increased majorly due to our metallization of linkage coal, which is slightly lower due to the various reasons, including the mine conditions from where we take coal. On top of it, there is an impact of imported coal, which is slightly at a higher cost as compared to earlier.

Although we have consumed more RE power, this quarter is slightly higher on the power and fuel cost.

Okay. What was the proportion of domestic coal in terms of linkages?

36% compared to it was 54% last year, 64% in quarter four.

Sure, sir. Also, if you could just I think as a policy, we never used to sell concentrate earlier.

Are we doing this on a temporary basis till the smelting capacity...?

We still don't sell concentrates. We still have the same policy that we don't sell concentrate.

However, if you recall, when we commissioned the 1 million tonne 1 million tonne capacity new mill in RD mine, in the initial days during stabilization of the plant, we had produced lots of lead concentrate, which are of slightly inferior grade and unusable in our own smelters. We thought we would make good of that with the good grades that will produce later on.

Looking at the price of silver and the good prices that were going, we didn't want to lose the opportunity by derating the smelters by using inferior grade of concentrate. That stock, which we are carrying for a long time, overage stock, that's what we sold in the market taking opportunity of the high LME, and we realized almost silver equivalent of 9 tonnes to the cell and about 6 kt of metal through the cell.

That's how we have made good of a situation where the old stock is disposed of, creating value for all of us.

Sir, is the stock being exhausted, sir, or we still have some of that old inventory with us?

Almost. We are segregating.

Maybe some amount still be there, but we'll figure out if we can use it. Now the smelter shutdowns are all over, capacities are back, and we won't like to keep the smelters empty.

We will not immediately sell unless we find that mine's productions are at a such a level that the smelters are not starving of any amount, then and then only.

Sure, sir. Also if you could just share the absolute revenue number of the concentrate sales?

The 375 crore, 315 crore is the revenue from concentrate.

315. Okay.

Finally, the production for the rest of the year, we shouldn't have any further shutdown or maintenance plan, right? For the remainder of the year?

Roughly we have given a guidance of 1.1 million tonnes for the year, right? We have done 260 kt just now.

Yes, now everything is back and we won't have any further shutdown and we will deliver on our commitment of 1.1 million tonnes.

Sure, sir. Thank you so much.

Good evening, everyone, and congratulations on a really good set of numbers. My first question is considering the kind of production for Q1 what we have achieved, what is the confidence that we will achieve the targeted production guidance, and would the management try to even revise or change the guidance for the year?

That would be my first question.

No, no. See, if we have done 260 kt, even on a straight-line method, we are already at 1,040, right?

We have given a guidance of 1.1 million tonnes only. It's only little.

We are absolutely confident of producing where typically quarter two, quarter three, as you go forward, the production numbers are the highest. Quarter four normally we touch even close to 280, 290 kt.

I don't see any reason why we will have any difficulty in reaching 1.1 million tonnes.

Second, sir, what is your expectation of what is the net cash position of which we will be exiting FY '27?

At this point of time, we are a net cash company. Based on the volumes we have predicted and the prices which are going in the market, we believe that we are going to be net cash company only.

Sir. Just one more question.

In the notes to accounts, specifically in point five, there have been mentioned that SEBI had flagged couple of observations on related party transactions. Although there has been no financial penalty or restriction or any kind of imposition on the group, but it has been mentioned that in line with SEBI's directions, several corrective measures have been taken.

Could you please throw a little bit of light on this, please?

The way it operates is all the related party transactions we take a omnibus approval, and staying with that limit we operate. Suppose in that omnibus approval, I had say 300 crores for a metal quantity of say I'm just giving a number of say 100,000 tonnes, right?

The operating people always focus on that 100,000 tonnes. Now if the LME increases, the value crosses 300 crores.

Then that's what, but now we internally the SOP we will do is at a 80% level alarms will be generated when we are about to cross 80% of the value approval. Go back to board and inform audit committee and take that approval.

Otherwise, there is no breach as such.

Thank you, sir. I just have one more question that in the presentation when we are mentioning that the zinc smelter and the lead smelter that is close to about plus 600 kt of metal capacity that is in conceptualization stage.

Could we have a timeline as in once the board approval happens, what is the timeline or how many months are we looking at for this capacity to come online, and what would be the approximate CapEx outlay for this?

This CapEx outlay we just can't because we are now going through the tendering process and maybe in another 1 month's time we would know exactly. If I do a straight-line method, for a 250 capacity, we said around 12,000 crores.

We can see including mines, somewhere around 650 kt will be about 2 and 1/2 times of that, roughly about 24, 25,000 crores. Yet I will wait for that tendering to be done.

Second, we are estimating a timeline of 36 months of construction period post approval by the board, which we expect by quarter three of this year. We will move for board approval.

Sir. Thank you, sir.

Thank you.

Hi. Thank you so much for the opportunity, and congratulations on the good set of numbers.

Hi. Is this better now?

Yeah. Thank you so much for the opportunity.

Sir, my first question is in line with the previous participant on the operational guidance. If you look at refined metal looks to be achievable for whatever guidance you had given for 1.1 million.

When we look at the volumes for silver, right, how should one look over the next three quarters because if we have to attain the 680 tonnes target, then we'll have to average at about 175 tonnes a quarter now. What would your view be on this considering that it has come down and now zinc prices are also quite attractive?

See,

if you look at the silver production, actually the silver grade this quarter has been better, right? In spite of a better grade, we have just produced 149 tonnes, a rough estimate of 10 to 15 tonnes of silver would be locked up in the WIP.

If you take out the concentrate sale, then actually 158 tonnes of silver value has been extracted. Now going forward, typically quarter two up till quarter four, we ensure that the mine development is such we hit even better PPM ore for silver and we maximize in quarter four.

Looking at that, we can surely say it will not be difficult to achieve the guidance numbers.

Okay. Understood.

Second question would be if you could let me know if there were any current hedges which are open for FY '27, and how should one be looking at the hedging policy going forward?

At this point of time, we have a 48 kt of zinc which are open at the rate of $3,162 per tonne and silver 34 tonnes at the rate of $63 per ounce. As of now, we are not doing any hedging considering the volatility in the market.

At the appropriate time whenever we do, we will update.

Okay. We did these hedges in Q1 or these were carried forward from Q4?

No, this year we haven't done any hedging.

We haven't done as of now. Okay.

Sir, one last question I wanted to also ask was this is related to your DAP fertilizer plant. Since it is expected to commission in Q2 and we're already halfway through Q2, can we get a definitive timeline on what is the targeted date or the month, and can you also shed some light of how the unit economics is expected to look out of the same?

No,

what will get commissioned in Q2 is the phosphoric acid portion of the fertilizer plant. It's the phosphoric acid plant that will be commissioned.

If you note that for the fertilizer plant, we are yet to complete the whole construction because the environment clearance and other regulatory approvals are pending. Once that is completed, then only we'll move to fertilizer.

As of now in Q2, you can expect phosphoric acid plant to be completed, and maybe some of the sulfuric acid will be converted to phosphoric acid for better realization in the market.

Okay. Got it.

What would be the timeline for the fertilizer plant then?

Fertilizer plant should come in, yes, quarter one of next financial year.

Okay. Got it.

Sure. Thank you.

That's all from my end. All the best.

Hi. Congratulations on the strong quarter, ma'am, and the whole team.

I have two questions. Firstly, there are several media article on government of India selling the stake in Hindustan Zinc.

Is there any update which can be shared on these regards? That is the first question.

It's for government to give the update. We really can't give any update on what government will do.

Sir. Okay.

Secondly, is there any change in the dividend policy after the demerger happened at Vedanta? How should we see the dividend during this year?

There is no change in the dividend policy. We have a minimum 30% of our profit and or 5% of reserves as per the policy we pay.

During the first quarter, we have paid ₹11 per share already. It's a matter of board, at the appropriate time, whatever decision is being taken, we'll be updating.

Sir. Thank you.

Best of luck for the coming quarter.

Thank you.

Thanks for the opportunity, sir, and congrats on a great set of numbers. My only question is that recently company won the REE block at Karnataka.

Can you please share the action plan or the details of the block? By when should we expect the production to come?

How should we see the lead concentrate sale? Will it be coming in the coming quarters?

That's my question.

This is a REE and yttrium block. If you know that yttrium yttrium is used mostly for various electronic purposes.

Like red LED lamp that we see, red LED is made out of yttrium as a phosphor element in that red LED. Also, it is used for various other medical purposes as well.

It's a very important metal for India's development. Now the question is, we have just got the block at G2 level G2 level.

Immediate task is exploration. Typically, it will take 2 years to 3 years for exploration, establishing the reserve resource base, and then doing the mine plan.

You can see you can say the mining and then metallization will take at least tenure between 5 to 6 years. That means maybe 2031, '32 would be the first time the production will come to market.

Got it, sir. Thank you.

Thanks.

Good evening. Thanks for the chance.

Sir, first question is on the cost. On the $50 per tonne reduction quarter on quarter, can we share some break-up as to what are the drivers and quantify?

During the quarter, our COP is broadly in line with the guidance we have given, which is $975 to $1,000. The additional benefit is because of the byproducts realization, which is higher in this.

Okay. Sir, between, say, this quarter and last year, what would be the incremental delta from byproduct realization?

Is it possible to explain?

Byproduct we are selling through the auction. Whatever price we are realizing, it is getting offset in COP, cost of production.

Based on that, the numbers which are there is reflecting in our financials.

Sure. Sir, second question is on the zinc processing plant.

If you could just share some details as to what is the recovery expected on full utilization and what is the time for the ramp-up?

Which zinc processing plant you are talking about? Is it tailings recycling plant?

Yeah. Tailings processing.

Tailings recycling, we have just started the construction. It will be another 24 months before the facility can be constructed.

We expect about 30, 35 kt of zinc to be produced out of that.

Okay. Does it take time to ramp up or say in 3 years' time we can get this output?

Tailings reprocessing apart from in one mine in Australia nobody has done. Of such capacity, I would expect it would have a ramp-up period of anywhere between 6 to 8 months.

Okay. Understood.

Just lastly with the fertilizer plant, what is the total CapEx we've spent till 1Q?

Around ₹500 crore we have already spent.

Understood. All right.

Okay. Thank you and all the best, sir.

Hi, sir. Just wanted to recheck on the hedge number.

I missed the quantity for zinc. The price I think was 3,162, right?

Zinc quantity is 48,000 tonnes, 48 kt.

48 kt. Silver was 34 tonnes at $63, right?

Right.

Okay. Understood.

Just on the first quarter, what would be the hedge losses?

The hedge losses are to the tune of ₹200 crore.

₹200 crore. The full-year CapEx guidance and the CapEx spent in 1Q?

The guidance for the year is on growth project is around $500 to $600 million we are expecting. During the quarter, we have spent around ₹800 crore on that.

₹800 crore. Okay.

Understood. Thanks, yeah.

Thank you very much. Just trying to understand the sulfuric acid prices have been very, very strong.

They are up 200% on a year-on-year basis, and prices have again recovered. Is it fair to say that the cost of production, because you report cost of production net of byproduct realizations, would further reduce in the second quarter?

I guess in the second quarter, we have just done 260 kt of metal, and second quarter if I have to meet 1.1 million tonnes guidance should cross around 280 kt, right? That means more mining has to happen, and in that case, automatically on the input side, the cost will go down.

If you produce more metal, then more acid will be produced. If the prices remain at current level, the cost is supposed to be better off unless we are struck by higher input commodity prices, which is also a likelihood.

Sure. Just a clarification, if I take royalty as a percentage of revenues, it is at multi-quarter lows.

This would essentially be because of higher sulfuric acid revenues, right, where you don't have to pay a royalty?

Your voice is muffled. I'm unable to hear properly.

No, my point was that the royalty as a percentage of revenues is at a multi-year low. This would essentially be because of sulfuric acid revenues being booked under revenues where you don't pay a royalty.

Would that be correct?

Which royalty you are talking about? Mineral royalty?

Mineral royalty as the P&L item as a percentage of revenues.

Sulfuric acid there is no royalty as per law because it's not any mineral product. It's something has to be produced because of environmental concerns.

You cannot let sulfur dioxide out in the environment. Right?

The mineral royalty, rather it's a percentage of the price that is the LME that is set. Automatically it becomes a percentage not revenue in absolute terms, but in the price in absolute terms.

Got it. Thank you very much, sir.

Thank you, operator. Thank you all for joining today's call.

Before we conclude, I would also like to take this opportunity to express our sincere gratitude to Mr. Arun Misra for his outstanding leadership and invaluable contribution to Hindustan Zinc's growth journey.

Under his leadership, the company achieved several significant milestones and further strengthened its position as a global leader in the zinc industry. On behalf of the entire Hindustan Zinc family, we thank him for his guidance and wish him continued success in his future endeavors.

Further, we are pleased to share that we have published our fourth integrated annual report, which provides a comprehensive overview of our strategy, financial and operational performance, sustainability initiatives, and long-term value creation journey. As always, our complete reporting suite is available on our website.

We welcome your feedback and suggestions as we continue to enhance the quality of our disclosures. Should you have any further questions or require additional information, please feel free to reach out to the investor relations team.

Thank you, and have a great day.