Hindustan Zinc Announces ₹10 Interim Dividend for FY26, Stock Gains Momentum
Hindustan Zinc Limited (HZL), a leading name in India’s zinc production sector, has rolled out its first interim dividend of ₹10 per share for the financial year 2025-26. This dividend represents 500% of the face value of ₹2 per share, highlighting the company’s dedication to creating value for its shareholders.
Dividend Announcement and Key Dates
The company’s board officially approved this dividend on June 11, 2025. The record date has been set for June 17, 2025, meaning all shareholders on record by this date will be eligible for the dividend. Hindustan Zinc plans to distribute a total of approximately ₹4,225 crore as part of this payout.
This move underscores the company’s strong liquidity position and commitment to regularly rewarding its investors.
Stock Reaction Following Dividend News
The announcement sparked a notable uptick in Hindustan Zinc’s stock price, which climbed over 2% intraday to trade near ₹530 per share. The market responded positively, reflecting confidence in the company’s growth and its history of dependable dividend payments.
Anticipation of the interim dividend had already driven recent gains in the stock, and the confirmation served to further strengthen investor sentiment.
Robust Financial Performance Backing Dividend
The company’s solid financial results support this generous dividend. Hindustan Zinc achieved a net profit of ₹3,003 crore in the fourth quarter of FY25, showcasing a remarkable 47% increase over the corresponding quarter of the prior year. Total revenue climbed to ₹9,087 crore, registering a 20% year-on-year increase.
Additionally, EBITDA jumped by 32% to ₹4,820 crore, with margins improving to 53%. As of March 2025, Hindustan Zinc maintained a net cash reserve of ₹1,700 crore, ensuring sufficient financial flexibility to support both dividend payments and future business initiatives.
Attractive Dividend Yield for Investors
At the current share price of ₹525-₹530, the ₹10 dividend offers an approximate yield of 1.9% from this payout alone. Hindustan Zinc continues to attract long-term investors who value consistent income streams, further solidifying its position as a reliable dividend stock.
The company’s balanced strategy of growth and shareholder rewards sets it apart from many of its peers in the metals industry.
Primary Dividend Beneficiaries
Major stakeholders are set to receive significant portions of this dividend. Vedanta Limited, holding a 63.4% stake in Hindustan Zinc, is expected to gain about ₹2,678 crore. Meanwhile, the Government of India, which owns 29.5% of the company, will receive nearly ₹1,180 crore.
The dividend payout is expected to enhance Vedanta’s cash position and provide additional support for its broader financial plans.
Technical View and Market Outlook
Technically, Hindustan Zinc’s stock has support around ₹510 per share and resistance near ₹600 per share. If the stock surpasses this resistance level, additional upside may follow.
Traders should carefully watch volume patterns and price trends. As the stock nears resistance, some profit-booking might emerge, necessitating prudent risk management for short-term investors.
Key Risks to Monitor
While Hindustan Zinc remains fundamentally sound, investors should consider the following potential risks:
Commodity Price Volatility: A fall in the prices of zinc, lead, or silver could reduce margins.
Dividend Sustainability: Maintaining high dividend payouts may become challenging if market dynamics deteriorate.
Global Demand Pressures: Weakening global industrial demand could dampen the company’s earnings outlook.
Conclusion
Hindustan Zinc’s ₹10 interim dividend for FY26 underscores its stable cash flows and its consistent focus on shareholder rewards. The company’s strong profitability, cash reserves, and attractive yield position it as a solid pick for long-term dividend-focused investors.
Investors may consider a buy-on-dips or hold approach at current levels, while traders should remain alert to commodity price movements and technical barriers.
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