Up 23% in a month; this largecap to meet today for dividend: Should you buy?

Shares of Hindustan Zinc Ltd, a Vedanta Group company, will be in the spotlight on Wednesday, June 11, as its board meets to consider the first interim dividend for the financial year 2025–26. The record date for this potential payout has already been fixed as June 17, 2025.

Dividend buzz: Will FY26 start with a big payout?

Investors are closely watching today’s board meeting to see if Hindustan Zinc maintains its dividend-paying trend. In FY25, the company paid out significant interim dividends, with the most recent one being Rs 19 per share announced in August 2024. Market participants are now looking for cues on whether the miner will kick off FY26 with a similar or larger payout, especially after a stellar March quarter performance.

Strong Q4 earnings boost sentiment

In Q4FY25, Hindustan Zinc posted robust financial results that exceeded market expectations. The company clocked revenue of Rs 9,087 crore, marking a 20 per cent increase year-on-year. Net profit surged 47 per cent to Rs 3,003 crore, driven by higher metal realizations and cost optimisation measures.

EBITDA stood at Rs 4,820 crore, up 32 per cent over the same quarter last year, while margins expanded sharply by nearly 500 basis points to 53 per cent. The earnings beat on all key parameters has strengthened the outlook for future payouts.

Promoters and government likely to benefit big

As of the March quarter, Vedanta held a 63.42 per cent stake in Hindustan Zinc. Based on this holding, Vedanta earned a total dividend of Rs 5,091 crore from the company in the last fiscal year. Meanwhile, the Government of India holds 27.92 per cent in the firm, meaning any interim dividend will also significantly boost its non-tax revenues.

Retail shareholders (those with up to Rs 2 lakh shareholding) held a 2.48 per cent stake as of March-end, which translates to over 7 lakh investors likely benefiting if a dividend is announced.

Hindustan Zinc stock rallies 23% in a month

Shares of Hindustan Zinc ended at Rs 533.70 on Tuesday, up 1.63 per cent. The stock has gained nearly 23 per cent over the last one month, reflecting strong investor confidence driven by its consistent dividend track record and recent financial performance.

Outlook: With today’s board meet and the record date just a week away, investors are anticipating another rewarding payout. Traders will watch the outcome closely as dividend plays remain in focus for both retail and institutional investors.