By Manvi Pant and Anuran Sadhu
(Reuters) -Hindustan Zinc expects strong growth in fiscal 2026 despite global price volatility caused by U.S. tariff uncertainty, a top executive told Reuters on Friday, after the miner reported a jump in quarterly profit.
Zinc prices, which averaged at about $2,900 a ton in financial year 2025, have oscillated between $2,500 and $2,700 so far in April, CFO Sandeep Modi said.
“It will take some time to create balance in prices due to U.S. tariffs, but fundamentally prices will remain strong.”
Modi said prices are expected to average at $2,800-$2,900 a ton in fiscal 2026, which started on April 1. Rising commodity prices typically boost selling prices and margins for miners.
U.S. President Donald Trump’s on-again-off-again tariffs have sparked trade uncertainty and gutted global markets in recent weeks.
On Friday, Hindustan Zinc reported a jump in fourth-quarter profit, supported by higher production and prices.
The company, India’s biggest producer of the refined metal, forecast production growth of saleable metal at 1,100 kilo tons per annum (KTPA) in fiscal 2026, up from 1,052 KTPA a year ago, CEO Arun Misra told Reuters.
It also expects a project capex of $225 million-$250 million this financial year.
Modi said an expansion plan for the company is underway and expects approval from the board for its first phase in about a month. He did not elaborate on the plan.
Demand for zinc, which is commonly used to coat steel to prevent corrosion, is set to grow by 5% this fiscal in India, while steel demand will rise 4%-5%, Modi said.
Domestic zinc prices rose about 17.5% in the fourth quarter, according to analysts, on higher demand from India’s construction and manufacturing sectors.
The company, which commands 75% of the domestic zinc market, said its revenue from operations rose 21.2% to 88.29 billion rupees, while total expenses grew only 8.5%.
The zinc division reported a 20.6% increase in revenue.
($1 = 85.4350 Indian rupees)
(Reporting by Anuran Sadhu in Bengaluru; Editing by Varun H K and Sonia Cheema)
