Hindustan Zinc Q2 FY27 Profit Jumps 142% to ₹6,412 Crore as Revenue Rises 77%

Hindustan Zinc Delivers Record Quarterly Financial Performance

Hindustan Zinc Limited reported a 142% year-on-year increase in consolidated net profit to ₹6,412 crore for the second quarter of financial year 2026–27, supported by stronger zinc and silver prices, higher production volumes and a substantial reduction in zinc production costs.

The Vedanta Group company announced its financial results on October 19, 2026, for the quarter ended September 30.

Consolidated revenue from operations increased 76.5% to ₹15,093 crore from ₹8,549 crore in the corresponding quarter of the previous financial year.

Earnings before interest, tax, depreciation and amortisation more than doubled to a record ₹9,285 crore, while the EBITDA margin expanded to approximately 62%.

The improvement reflected favourable metal prices, increased output, stronger by-product realisations and operating efficiencies.

Silver emerged as an important contributor to profitability, with revenue from silver sales increasing 141% year-on-year to ₹4,111 crore.

The company also reported record second-quarter mined and refined metal production.

Zinc production costs, excluding royalty, declined 29% to $703 per tonne, strengthening margins during a period of elevated metal prices.

The results highlight the combined impact of higher commodity realisations and improved operational efficiency on Hindustan Zinc's financial performance.

Hindustan Zinc Q2 FY27 Financial Highlights

The results demonstrate that Hindustan Zinc achieved substantial earnings growth while maintaining a considerably lower rate of expense growth than revenue growth.

Net Profit More Than Doubles to ₹6,412 Crore

Hindustan Zinc's consolidated net profit increased to ₹6,412 crore from ₹2,649 crore in the September 2025 quarter.

The increase of ₹3,763 crore represented year-on-year growth of approximately 142%.

Sequentially, net profit rose around 17% from ₹5,469 crore in the June 2026 quarter.

The strong earnings performance reflected higher zinc and silver prices, increased production and lower operating costs.

Net profit margin improved to approximately 42% from 31% a year earlier.

The expansion indicates that a larger proportion of revenue was converted into profit.

Higher commodity prices played an important role, but production efficiencies also supported the improvement.

The combination enabled Hindustan Zinc to deliver earnings growth significantly above its revenue growth rate.

However, future profitability will remain sensitive to metal prices, energy costs and production conditions.

Revenue Surges 76.5% to ₹15,093 Crore

Revenue from operations increased to ₹15,093 crore during Q2 FY27.

This compared with ₹8,549 crore in the corresponding quarter of FY26.

The increase of ₹6,544 crore represented growth of approximately 76.5%.

Sequentially, revenue increased about 10% from ₹13,747 crore.

The company attributed the improvement to higher metal prices, increased production volumes, stronger realisations from by-products and favourable foreign exchange movements.

Zinc remained the largest revenue contributor.

Silver also recorded exceptional growth, reflecting stronger prices and higher production.

The performance indicates that Hindustan Zinc benefited from both pricing conditions and operational improvements.

However, the contribution of commodity prices means that the pace of revenue growth may fluctuate with global market conditions.

EBITDA More Than Doubles to Record ₹9,285 Crore

Hindustan Zinc reported EBITDA of ₹9,285 crore for the September quarter.

This represented an increase of approximately 108% from ₹4,467 crore in the previous year.

The company achieved an EBITDA margin of around 62%, compared with approximately 52% a year earlier.

The expansion of roughly nine percentage points demonstrates a substantial improvement in operating profitability.

Higher metal prices increased revenue without requiring an equivalent rise in production volumes.

Lower zinc production costs also supported earnings.

The company benefited from improved ore grades, higher output and increased renewable energy consumption.

Stronger by-product realisations provided an additional advantage.

The EBITDA performance illustrates how operating efficiency can amplify the financial benefits of favourable commodity prices.

Zinc Sales Revenue Rises 54% to ₹8,224 Crore

Zinc remained Hindustan Zinc's largest revenue-generating metal.

Revenue from zinc sales increased 54% year-on-year to ₹8,224 crore.

The corresponding figure in Q2 FY26 was ₹5,354 crore.

Higher zinc prices and increased production supported the expansion.

Zinc is widely used in galvanising steel to protect it against corrosion.

Demand is therefore linked to construction, infrastructure, automobiles and industrial manufacturing.

The metal also has applications in alloys, chemicals and other industrial products.

Hindustan Zinc is a major supplier to India's domestic zinc market.

Its financial performance is influenced by international zinc prices and domestic demand conditions.

The latest results show that stronger realisations significantly improved the contribution from the zinc business.

Silver Revenue Jumps 141% to ₹4,111 Crore

Silver was a major driver of Hindustan Zinc's earnings growth.

Revenue from silver sales increased 141% year-on-year to ₹4,111 crore.

The company reported silver revenue of approximately ₹1,706 crore in the corresponding quarter of the previous financial year.

The increase was supported by stronger silver prices and higher production.

Silver production rose 20% to 173 tonnes.

The metal contributed substantially to the company's profitability during the quarter.

Silver is used in jewellery, investment products, electronics and industrial applications.

It also plays a role in solar photovoltaic technology and other electrical systems.

Demand from both investment and industrial markets can influence prices.

For Hindustan Zinc, silver provides an additional earnings stream alongside zinc and lead.

The sharp increase in silver revenue helped diversify the company's profit contribution during the quarter.

Silver Becomes an Increasingly Important Profit Contributor

Silver has developed into a strategically important component of Hindustan Zinc's business.

Although zinc remains the largest revenue contributor, silver can generate significant earnings when prices strengthen.

During the first half of FY27, silver accounted for approximately 45% of the company's overall profitability.

This reflects the substantial contribution of silver production to the company's earnings.

The importance of silver also means that changes in precious metal prices can influence financial performance.

Silver prices are affected by industrial demand, investment flows, interest rate expectations and global economic conditions.

Higher silver prices can improve realisations.

However, price declines could reduce profitability even if production remains stable.

The company's integrated operations provide exposure to both industrial and precious metals markets.

Lead Sales Increase 35%

Hindustan Zinc also reported growth in its lead business.

Revenue from lead sales increased approximately 35% year-on-year to ₹1,130 crore.

The corresponding figure in Q2 FY26 was ₹840 crore.

Lead is used in batteries, industrial equipment and other applications.

Demand is influenced by automotive manufacturing, energy storage and industrial activity.

The increase in lead revenue contributed to the broader expansion of Hindustan Zinc's metal sales.

However, zinc and silver remained the principal drivers of the company's exceptional quarterly financial performance.

Zinc Production Cost Declines 29%

One of the most significant operational developments was the reduction in zinc production costs.

The company's zinc cost of production, excluding royalty, declined 29% year-on-year to $703 per tonne.

The reduction was supported by better mined ore grades, higher production volumes, increased renewable energy consumption and stronger by-product realisations.

Improved ore grades can increase the amount of recoverable metal obtained from mined material.

Higher production volumes can also help distribute certain operating costs across a larger output base.

Renewable power consumption can influence energy expenditure, depending on generation arrangements and alternative power costs.

The company also benefited from stronger realisations from sulphuric acid and other by-products.

These factors helped improve operating profitability despite inflation in some input commodities.

Management Lowers FY27 Zinc Cost Guidance

Following the strong quarterly cost performance, Hindustan Zinc revised its zinc production cost guidance for FY27.

The company now expects costs of approximately $825–$850 per tonne.

This compares with its earlier guidance of $975–$1,000 per tonne.

The reduction reflects improved operating efficiency and the company's expectations for production costs during the remainder of the financial year.

However, the revised guidance remains above the exceptionally low $703 per tonne achieved during the September quarter.

This distinction is important because quarterly cost performance can benefit from favourable conditions that may not continue throughout the year.

Higher sulphuric acid prices have contributed to lower net production costs through stronger by-product credits.

Management has acknowledged that this benefit depends on market conditions.

The sustainability of lower costs will therefore remain an important factor in future earnings.

Mined Metal Production Reaches 271,000 Tonnes

Hindustan Zinc reported mined metal production of 271,000 tonnes during the September quarter.

This represented year-on-year growth of approximately 5%.

The company described the output as its highest-ever mined metal production for a second quarter.

Higher mined metal production supported the availability of material for downstream refining operations.

Mining output depends on ore availability, mine development, equipment performance and operational efficiency.

Improved production can help reduce unit costs when supported by favourable operating conditions.

The latest performance demonstrates progress in the company's mining operations.

However, sustaining higher output will require continued investment in mine development and operational reliability.

Refined Metal Production Increases 7%

Refined metal production rose 7% year-on-year to 264,000 tonnes.

The company reported record refined metal output for a second quarter.

Refined metal production is important because it determines the volume of finished metal available for sale.

Higher output can support revenue growth when customer demand and pricing conditions remain favourable.

The increase also contributed to improved operating efficiency.

Hindustan Zinc's integrated mining and refining operations allow the company to coordinate different stages of the production process.

However, refining performance remains dependent on energy availability, maintenance requirements and plant utilisation.

The latest results indicate that the company maintained strong operational performance across its production chain.

Renewable Energy Consumption Supports Cost Efficiency

Hindustan Zinc identified increased renewable power consumption as one factor contributing to lower production costs.

Mining and metal refining are energy-intensive activities.

Electricity and fuel costs can therefore have a substantial effect on profitability.

Greater renewable energy consumption can help diversify power sources and potentially reduce exposure to certain conventional energy costs.

However, the financial benefit depends on the terms of power supply arrangements and prevailing energy prices.

The company continues to pursue energy transition initiatives as part of its broader operating strategy.

These investments may support long-term cost management and sustainability objectives.

Nevertheless, energy costs will remain an important component of zinc production economics.

Sulphuric Acid Realisations Provide Additional Benefit

Hindustan Zinc benefited from stronger prices for sulphuric acid, a by-product associated with zinc production.

By-product sales can reduce the effective cost of producing the principal metal.

When by-product prices increase, the additional revenue can improve net production costs.

This was one of the factors supporting the company's lower zinc cost of production during Q2 FY27.

However, by-product prices are market-dependent.

They can change in response to industrial demand, supply conditions and broader commodity market developments.

Management has indicated that the benefit from elevated sulphuric acid prices may not be permanent.

Investors will therefore assess the extent to which lower production costs are supported by structural efficiencies rather than temporary market conditions.

First-Half FY27 Net Profit Rises 143%

Hindustan Zinc's strong September-quarter performance contributed to substantial growth for the first six months of FY27.

Revenue from operations increased approximately 77% year-on-year to ₹28,840 crore.

EBITDA rose 108% to ₹17,359 crore.

Net profit increased approximately 143% to ₹11,881 crore.

The first-half EBITDA margin stood at around 60%.

The results indicate that the company's earnings expansion was not limited to a single quarter.

Higher metal prices and operating improvements supported performance across the first half.

However, commodity price movements will remain an important determinant of results during the second half of FY27.

First-Half Production Shows Operational Growth

For the six months ended September 30, Hindustan Zinc reported mined metal production of approximately 539,000 tonnes.

This represented growth of 3% year-on-year.

Refined metal production increased 6% to approximately 524,000 tonnes.

Silver production rose 10% to 321 tonnes.

These figures demonstrate growth across the company's principal production categories.

The improvement supported higher sales volumes during a period of favourable metal prices.

Continued production growth will depend on mine development, refining capacity and operational performance.

The company's ability to maintain efficient output will remain important for future margins.

Strong Cash Generation Supports Financial Position

Hindustan Zinc reported free cash flow before growth capital expenditure of approximately ₹6,389 crore during the September quarter.

The figure reflects strong operating cash generation during a period of elevated profitability.

As of September 30, 2026, the company reported gross investments and cash of approximately ₹17,439 crore.

Outstanding borrowings stood at around ₹6,171 crore.

The financial position provides resources for capital expenditure and other corporate requirements.

However, mining expansion projects can require substantial investment over multiple years.

The company must balance growth spending with liquidity management and shareholder distributions.

Future cash generation will depend on commodity prices, production volumes and operating costs.

Zinc Expansion Project Advances

Hindustan Zinc is progressing with an integrated zinc expansion project designed to add approximately 250,000 tonnes of annual capacity.

The company has indicated that engineering and procurement activities for the project are nearing completion.

Mine development work is also underway.

The expansion is intended to support future production growth.

Additional capacity could increase the company's ability to serve domestic and international markets.

However, new capacity does not automatically guarantee higher earnings.

Commercial benefits will depend on project completion, production ramp-up, metal prices and operating costs.

The expansion also requires capital expenditure before the full financial contribution becomes available.

Investors will monitor the project's execution schedule and cost discipline.

Global Zinc Supply Conditions Support Prices

Zinc prices have strengthened amid concerns about global supply availability.

Mine closures and declining ore grades in certain producing regions have affected supply expectations.

Hindustan Zinc expects the global refined zinc market to face a deficit of approximately 180,000 tonnes in 2026.

A supply deficit occurs when expected consumption exceeds available production.

Such conditions can support metal prices, particularly when inventories are limited.

However, commodity markets remain sensitive to changes in demand and supply.

Higher prices may encourage additional production or reduce consumption in some applications.

Global economic conditions can also influence demand from construction and manufacturing.

Consequently, the projected deficit should be treated as a market expectation rather than a guaranteed outcome.

Critical Minerals Diversification Creates New Opportunities

Hindustan Zinc is expanding its strategic interest beyond traditional zinc, lead and silver operations.

The company has received a letter of intent for the Gundlupet Rare Earth Element and Yttrium Block in Karnataka.

The development represents progress in its critical minerals diversification strategy.

Rare earth elements and other critical minerals are relevant to several advanced manufacturing and energy transition technologies.

However, receiving a letter of intent is not equivalent to beginning commercial production.

Further technical, regulatory and investment requirements may apply.

The company will need to assess the commercial viability of the mineral resources.

The initiative provides a potential long-term growth opportunity but does not represent an immediate contributor to quarterly earnings.

Commodity Prices Remain Central to Earnings Outlook

Hindustan Zinc's exceptional quarterly profitability benefited significantly from stronger metal prices.

Higher zinc prices supported revenue from its principal business.

Silver price increases generated substantial additional earnings.

The company also benefited from favourable foreign exchange movements and by-product realisations.

However, these factors can change over time.

A decline in zinc or silver prices could reduce revenue and margins.

Conversely, sustained strong prices combined with lower production costs could support continued profitability.

Investors will therefore monitor commodity prices alongside operating performance.

The distinction between structural cost improvements and cyclical pricing benefits will be important in assessing earnings sustainability.

Outlook for the Remainder of FY27

Hindustan Zinc enters the second half of FY27 following a strong financial and operational performance.

The company has lowered its zinc cost guidance and continues to advance its capacity expansion programme.

Production efficiency, ore grades and renewable energy consumption will remain important operating factors.

Silver prices could continue to influence earnings significantly.

The company will also monitor global zinc supply conditions and demand from industrial customers.

Capital expenditure on expansion projects and critical minerals initiatives will require disciplined financial management.

While the first-half results demonstrate substantial earnings growth, future performance will remain sensitive to commodity prices and operating conditions.

Conclusion

Hindustan Zinc delivered a record financial performance in the second quarter of FY2026–27, with consolidated net profit increasing 142% to ₹6,412 crore.

Revenue from operations rose 76.5% to ₹15,093 crore, supported by stronger zinc and silver prices, higher production volumes and improved by-product realisations.

EBITDA more than doubled to ₹9,285 crore, while the EBITDA margin expanded to approximately 62%.

Silver revenue surged 141% to ₹4,111 crore, making it a major contributor to earnings growth.

The company also achieved record second-quarter mined and refined metal production.

Zinc production costs declined 29% to $703 per tonne, prompting management to reduce its FY27 cost guidance to $825–$850 per tonne.

The results highlight the financial benefits of combining favourable commodity prices with operating efficiency.

However, future profitability will depend on the sustainability of metal prices, production costs and demand conditions.

Hindustan Zinc's expansion investments and critical minerals initiatives provide additional long-term opportunities, while disciplined execution and cost management will remain essential for sustaining earnings growth.