Hindustan Zinc $500-600M capex plan
Analysis based on 6 articles · First reported Jul 26, 2026 · Last updated Jul 26, 2026
The capex plan signals Hindustan Zinc's commitment to expanding capacity and improving efficiencies, which could boost future production and profitability. The strong Q1 results and cost reduction are positive for investor sentiment, though the stock has declined 13% year-to-date.
Hindustan Zinc Ltd (HZL), a Vedanta Limited company, announced plans to invest $500-600 million (around ₹5,000 crore) in capital expenditure during FY27. About 80% of the capex will fund ongoing expansion projects, while 20% will support new initiatives to be announced soon. The company's total expansion pipeline is about 1 million tonnes, with 250,000 tonnes already approved involving ₹12,000 crore investment. Mining orders have been placed and smelter construction started. The remaining expansion to 650 KT will require similar investment over 4-5 years, translating to average annual capex of ₹7,000-8,000 crore. HZL also reported strong Q1 results with net profit more than doubling to ₹5,469 crore and achieved its lowest-ever quarterly zinc cost of production at $851 per tonne.
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