Hindustan Zinc Limited has informed the Exchange about Credit Rating
HINDZINC · price
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CRISIL Ratings has reaffirmed Hindustan Zinc's highest credit rating of 'CRISIL AAA/Stable' on its bank facilities (Rs. 12,270 crore, reduced from Rs. 12,805 crore) and assigned the same AAA/Stable rating to new non-convertible debentures worth Rs. 1,147 crore. The short-term rating of CRISIL A1+ on the Rs. 5,000 crore commercial paper programme was also reaffirmed. The rating action reflects HZL's dominant 77% share in the domestic zinc market, integrated low-cost operations (Q1 FY26 cost of production at USD 1,010/tonne), and strong financial risk profile with FY25 EBITDA of Rs. 17,388 crore (up 25% YoY) and PAT of Rs. 10,353 crore. The company had cash and liquid investments of Rs. 9,340 crore against debt of Rs. 14,012 crore as of June 30, 2025, with net leverage at a very low 0.1 times. CRISIL also noted management's intent to evaluate a potential demerger, though no decision has been taken yet.
The reaffirmation at the highest AAA/Stable rating reflects strong creditworthiness and low borrowing costs for HZL, which is positive for shareholders. The robust liquidity, strong cash flows, and dominant market position support continued financial stability, though the possible demerger evaluation and concentration in zinc remain monitorable risks.