Despite volatility in global zinc prices driven by uncertainty over U.S. tariffs, Hindustan Zinc anticipates strong growth in fiscal 2026, a top company executive said to Reuters on Friday. The outlook follows the miner’s report of a significant rise in quarterly profit.
CFO Sandeep Modi said that the Zinc prices have fluctuated between $2,500 and $2,700 so far in April, which in the financial year 2025, averaged at about $2,900 a ton.
“It will take some time to create balance in prices due to U.S. tariffs, but fundamentally, prices will remain strong,” he said.
Modi projected that prices would average between 2,800 and 2,900 per ton in fiscal 2026, beginning April 1. Higher commodity prices generally lead to increased selling prices and improved profit margins for mining companies. However, the U.S. tariff uncertainty has hit the global market in recent weeks.
Hindustan Zinc announced a sharp rise in its fourth-quarter profit on Friday, driven by increased production and favorable price trends. The company is said to be the largest producer of refined metal, and has projected its saleable metal output to rise to 1,100 kilo tons per annum (KTPA) in fiscal 2026, up from 1,052 KTPA the previous year, CEO Arun Misra said in an interview with Reuters.
The company also expects a project capex of $225 million-$250 million this year. According to Modi, an expansion plan for the company is set for approval from the board for its first phase.
Demand for zinc, widely used as a protective coating for steel to prevent rust, is projected to increase by 5% this fiscal year in India, while steel demand is expected to grow by 4%-5%, according to Modi. Analysts note that domestic zinc prices surged around 17.5% in the fourth quarter, due to the stronger demand from India’s construction and manufacturing industries.
The company holds a 75% share of India’s zinc market and has reported a 21.2% rise in operational revenue to 88.29 billion rupees, while total expenses grew at a slower pace of 8.5%. Its zinc segment saw a 20.6% revenue increase.
Source: Reuters