Hindustan Zinc Share Price Jumps After Interim Dividend Announcement

Hindustan Zinc Share Price Jumps After Interim Dividend Announcement

Market Performance

Hindustan Zinc share price saw a notable rise in Thursday's trading session, gaining nearly 2.22% after the company declared its first interim dividend for FY26.

  • Opening Price: ₹518.50
  • Previous Close: ₹520.55
  • Intraday High: ₹530 per share

This uptrend follows the board's approval of a significant dividend, which has led to increased investor interest.

Main News

The board of Hindustan Zinc approved an interim dividend of ₹10 per equity share, which equates to 500% of the face value of ₹2 per share for the financial year 2025-26.

  • Record Date for Dividend: June 17, 2025
  • This is the first interim dividend declared by the company in the current financial year.

This announcement follows the company's history of rewarding shareholders, with the last dividend payout being ₹19 per share in August 2024.

Company Details

  • Promoter Holding: As of the March quarter, Vedanta holds a 63.42% stake in Hindustan Zinc.
  • Based on this stake, Vedanta is set to receive approximately ₹2,679 Crore as part of the latest dividend payout.

In the previous financial year, Vedanta received a total dividend of ₹5,091 Crore from Hindustan Zinc, reflecting the company's consistent approach to shareholder returns.

Financial Highlights – Q4 FY25

Revenue & Profits

Hindustan Zinc reported strong financial results for the March quarter:

  • Net Profit: ₹3,003 Crore
    • YoY Growth: 47% increase
  • EBITDA: ₹4,820 Crore
    • YoY Growth: 32% increase

EBITDA Margins

  • EBITDA Margin: 53%
    • Compared to 48.3% in the corresponding quarter last year
    • This represents an increase of 500 basis points

These solid numbers underline Hindustan Zinc's operational efficiency and firm financial footing.

Summary

Hindustan Zinc's share price climbed after the company announced a robust interim dividend of ₹10 per share for FY26. This development, paired with the company's strong March quarter results—including a 47% surge in net Profit and improved EBITDA margins—has kept the stock in focus. With Vedanta set to receive ₹2,679 Crore in dividends, Hindustan Zinc remains a key dividend-yielding entity in the metals sector.

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