In a letter to shareholders, Habbar emphasized the need for India’s push to reduce its dependence on imports of critical minerals, and positioned the company to contribute to this effort. She said Hindustan Zinc has built a reputation over the past 24 years as a company that acts decisively and focuses on opportunities over challenges.
She pointed to a changing global landscape marked by a decline in international cooperation and an increased emphasis on national strength, which she said is increasingly dependent on defense, energy and minerals. In this backdrop, Hindustan Zinc had already started its “2.0 journey” even before the recent global changes, adding that the current environment reinforces the company’s direction.
FY25-26 marked a year of stable performance. The company recorded its highest ever mined metal production at 1,114 kt, supported by better ore grades and operational efficiency. Refined metal output was 1,048 kt, with refined zinc at a record 851 kt.
Silver is steadily gaining importance in the company’s portfolio. In a once non-metal-producing country with no history of silver production, Hindustan zinc has reached 627 tonnes. Habber described this as a matter of pride, particularly noting silver’s dual role as both a precious metal and a key industrial input in technologies such as solar cells.
She also emphasized the consistency of performance achieved along with cost discipline and operational focus. The company’s production costs are among the lowest globally, which strengthens its competitiveness and resilience.
This operating discipline translated into strong shareholder value creation. Since the disinvestment, Hindustan Zinc has returned more than 1400X to total shareholders with a compound annual growth rate of around 33%. During the year, the company entered the Nifty 100 and Nifty Next 50 indices along with ESG indices, reflecting both scale and quality of operations.
Habber recalled that India was once dependent on zinc imports before the privatization of the company in 2002. Today, the country is self-sufficient in metals, which she described as vital for a high-performing economy. She said the transition offers a template for the future as the world moves into a more mineral-intensive phase of development.
(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)
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