Hindustan Zinc Q2 revenue hits record Rs 15,093 cr, profit up 142%

Hindustan Zinc posts a 142% YoY surge in Q2 net profit to Rs 6,412 crore. Revenue from operations climbed 77% to a record Rs 15,093 crore, while EBITDA more than doubled, driven by higher metal prices and record production.

Hindustan Zinc Limited on Monday reported a 142 per cent year-on-year rise in consolidated net profit to Rs 6,412 crore for the second quarter of financial year 2026-27, compared to Rs 2,649 crore in the corresponding quarter last year.

Stellar Financial Performance

The company's revenue from operations increased 77 per cent year-on-year to a record Rs 15,093 crore during the quarter, against Rs 8,549 crore in the year-ago period, according to the company's press release.

Earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled to a record Rs 9,285 crore, registering a growth of 108 per cent year-on-year. The company reported an EBITDA margin of 62 per cent, compared to 52 per cent in the corresponding quarter of the previous financial year.

The company attributed the strong performance to higher metal prices, increased production, improved by-product realisations and a stronger dollar, along with lower production costs.

Record Operational Achievements

On the operational front, mined metal production reached a record 271 kilotonnes (KT), marking a 5 per cent year-on-year increase. Refined metal production rose 7 per cent to a best-ever second-quarter level of 264 KT.

Silver production increased 20 per cent year-on-year to 173 tonnes during the quarter, contributing significantly to the company's profitability.

Hindustan Zinc's cost of production for zinc, excluding royalty, declined 29 per cent year-on-year to USD 703 per tonne, compared to USD 994 per tonne in the corresponding quarter last year. The company said the reduction in costs was supported by better mined grades, higher metal production, increased renewable power consumption and improved by-product realisations. These gains were partly offset by lower domestic coal usage and higher input commodity prices.

Strong Domestic Demand and Market Outlook

India's domestic zinc demand is supported by its widespread use in galvanising steel to protect it against corrosion. According to the Ministry of Mines' Annual Report 2025–26, India's apparent zinc consumption was estimated at 8.76 lakh tonnes in 2024-25, reflecting strong domestic demand for the metal.

The demand outlook is also supported by rising steel consumption in the country. According to the latest Ministry of Steel data, released on October 6, finished steel consumption increased 7.5 per cent year-on-year to 84.9 million tonnes during April-September 2026. The growth is expected to support zinc demand for steel galvanisation, although recent figures on zinc-specific consumption growth are not available.

First-Half FY27 Performance Highlights

For the first half of FY27, Hindustan Zinc's revenue from operations rose 77 per cent year-on-year to Rs 28,840 crore. EBITDA increased 108 per cent to Rs 17,359 crore, while net profit surged 143 per cent to Rs 11,881 crore.

Mined metal production for the first half stood at a record 539 KT, up 3 per cent year-on-year, while refined metal production increased 6 per cent to 524 KT. Silver production rose 10 per cent to 321 tonnes. The company generated free cash flow of Rs 11,642 crore before growth capital expenditure during the first half of the financial year. As of September 30, 2026, Hindustan Zinc had gross investments and cash of Rs 17,439 crore, while its outstanding borrowings stood at Rs 6,171 crore.

Sustainability and Green Initiatives

On the sustainability front, the company said renewable energy accounted for 27 per cent of its overall power consumption during the quarter. Its zinc alloy plant also began sourcing 100 per cent of its power requirements from renewable energy sources. The company further announced initiatives to deploy electric vehicles and equipment at its mining operations, including an electric crane at Rajpura Dariba and an electric cherry-picker at Rampura Agucha. It also partnered with MFL India for 30 electric trucks at Rampura Agucha.

CEO's Vision for Growth

Commenting on the performance, Hindustan Zinc CEO Amarendu Prakash said, "I am honored to lead Hindustan Zinc at this pivotal stage. Our record quarterly mined metal production of 271 KT and refined metal production of 264 KT demonstrates the strength of our operations, assets and people. We remain focused on disciplined growth, AI-led innovation, and advancing our critical minerals portfolio to support India's energy transition while delivering long-term stakeholder value."

About Hindustan Zinc

Hindustan Zinc Limited, a Vedanta Group company, is the world's largest integrated zinc producer and supplies metals to more than 30 countries. The company holds approximately 74 per cent of India's primary zinc market, according to its press release. (ANI)

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