Hindustan Zinc Ltd, a Vedanta group company, reported a 142% rise in consolidated net profit to ₹6,412 crore for the quarter ending September 30, 2026 (Q2 FY27). This growth was fueled by higher metal prices, increased production, and a stronger US dollar.
- Net profit surged from ₹2,649 crore in Q2 FY26 to ₹6,412 crore in Q2 FY27.
- Revenue from operations rose 76.5% to ₹15,093 crore.
- EBITDA increased 108% to ₹9,285 crore.
- Record mined metal production of 271,000 tonnes, up 5% year-on-year.
- Refined metal production grew 7% to 264,000 tonnes.
- Silver production increased 20% to 173 tonnes, boosting profitability.
- Gross investments and cash totaled ₹17,439 crore; borrowings stood at ₹6,171 crore.
What drove Hindustan Zinc’s strong quarterly performance?
The company’s improved results were mainly due to higher metal prices, increased production volumes, and favorable currency exchange rates. CEO Amarendu Prakash highlighted record quarterly mined and refined metal production, demonstrating operational strength and effective asset management.
Hindustan Zinc also emphasized its focus on disciplined growth, innovation through artificial intelligence, and expanding its critical minerals portfolio to support India's energy transition.
What are the key production highlights from Q2 FY27?
Hindustan Zinc achieved record mined metal production of 271,000 tonnes, a 5% increase compared to the same quarter last year. Refined metal production rose by 7% to 264,000 tonnes. Silver output grew significantly by 20% to 173 tonnes, which contributed notably to the company’s profitability.
What challenges could affect Hindustan Zinc’s future earnings?
Analysts have mixed views on the sustainability of current metal prices. Citi cautions that zinc prices may moderate, limiting further upside. They expect the zinc market to remain balanced through 2027, with zinc prices around $3,700 per tonne in 2028, similar to current levels.
Silver prices are also volatile. Since silver accounts for about 50% of Hindustan Zinc’s EBITDA, fluctuations can significantly impact earnings. Citi notes that silver’s future depends on macroeconomic conditions easing.
How do analysts view Hindustan Zinc’s stock performance?
Jefferies praised the company’s strong operating performance in Q2, with EBITDA rising 15% sequentially and exceeding estimates by 8%. They increased earnings-per-share estimates for FY27 by 5% but lowered forecasts for FY28 and FY29 by 4% each due to expected lower silver prices.
Jefferies also pointed out that Hindustan Zinc’s stock is trading below its long-term average enterprise value to EBITDA multiple, suggesting potential undervaluation. A recovery in silver prices could be key to improving the stock’s performance.
What is Hindustan Zinc’s financial position as of September 30, 2026?
The company held gross investments and cash totaling ₹17,439 crore, indicating strong liquidity. Total borrowings were ₹6,171 crore, reflecting a manageable debt level relative to its cash reserves.
Frequently Asked Questions
Q: What caused Hindustan Zinc’s profit to rise sharply in Q2 FY27?
A: The profit increase was driven by higher metal prices, increased production of zinc and silver, and a stronger US dollar.
Q: How did silver production impact the company’s earnings?
A: Silver production rose 20%, significantly contributing to profitability since silver accounts for about half of the company’s EBITDA.
Q: What risks do analysts see for Hindustan Zinc’s future earnings?
A: Analysts are concerned about potential moderation in zinc prices and volatility in silver prices, which could limit earnings growth.
Q: What is the company’s approach to future growth?
A: Hindustan Zinc focuses on disciplined growth, AI-led innovation, and expanding its critical minerals portfolio to support India’s energy transition.
Note: This article is for informational purposes only and does not constitute investment advice. Readers should consult a financial advisor before making investment decisions.
