Hindustan Zinc fertiliser plant likely to be operational by FY27: Chair

Vedanta group firm Hindustan Zinc Ltd (HZL) is likely to begin the operation of its fertilizer manufacturing plant in Rajasthan by the next financial year, company's chairperson Priya Agarwal Hebbar has said.

The company is making its entry into fertilizer production by setting a 0.5 million tonnes (MT) per annum manufacturing plant at Chanderiya in Chittorgarh district of Rajasthan.

"Diversification is central to our growth strategy. Last year, we commissioned a 30 KTPA zinc alloy plant, significantly expanding our value-added products (VAP) portfolio. Including alloys, VAP now contributes 22 per cent to our total business. We are also entering the fertilizer segment with a (diammonium phosphate/nitrogen, phosphorous and potassium) plant expected to become operational by FY27," she said in a recent letter to shareholders. 

The plant aims to support farmers' needs through production and sale of DAP fertilizer currently being imported, according to the company's Q4 investor presentation.

These initiatives, she said, will diversify the company's revenue streams and enhance margins.

Hebbar further said that the company's wholly-owned subsidiary Hindmetal Exploration Services is pursuing high-potential exploration blocks across the country for copper, lithium, nickel, cobalt, potash, gold and more. These minerals are critical for electric vehicles, semiconductors and clean technologies.

"We will evolve from a zinc and silver company into a multi-metal, future-enabling enterprise. We are totally aligned with India's critical mineral security vision," the chairperson said.

Hindustan Zinc Ltd reported a 47.3 increase in consolidated net profit at Rs 3,003 crore in the quarter ended March 2025 on the back of higher income.

The company had posted a net profit of Rs 2,038 crore in the year-ago period.

Income of the company during the latest January-March quarter increased to Rs 9,314 crore from Rs 7,822 crore in the year-ago period.

In a statement the company said that it was its "best-ever fourth quarter profit after tax of Rs 3,003 crore, up 47 per cent Y-o-Y".