Hindustan Zinc reported a 142% year-on-year increase in consolidated net profit to ₹6,412 crore for the second quarter of the financial year 2026–27, supported by higher metal prices, increased production and lower zinc manufacturing costs. Revenue from operations climbed 76.5% to ₹15,093 crore for the quarter ended September 30, 2026, while EBITDA more than doubled to a record ₹9,285 crore. The company’s EBITDA margin expanded to 62%, compared with 52% in the corresponding quarter last year.
The strong performance reflects gains across zinc, silver and other metal businesses, alongside improvements in operating efficiency. Mined metal production increased 5% to 271 kilotonnes, refined metal production rose 7% to 264 kilotonnes, and silver production climbed 20% to 173 tonnes. Hindustan Zinc also reduced its zinc production cost, excluding royalty, by 29% to $703 per tonne and lowered its full-year cost forecast. However, the company’s earnings remain sensitive to metal prices, by-product realisations and the cost of energy and other inputs.
Key Takeaways
- Net profit: Increased 142% year-on-year to ₹6,412 crore from ₹2,649 crore.
- Revenue: Rose 76.5% to ₹15,093 crore.
- Record EBITDA: Climbed 108% to ₹9,285 crore.
- EBITDA margin: Expanded to 62% from 52% a year earlier.
- Silver sales: Revenue from silver sales surged 141% to ₹4,111 crore.
- Production growth: Mined metal output rose 5%, refined metal increased 7%, and silver production grew 20%.
- Lower costs: Zinc production cost, excluding royalty, declined 29% to $703 per tonne.
- Revised forecast: FY27 zinc production cost guidance was reduced to $825–$850 per tonne from $975–$1,000.
Hindustan Zinc Q2 FY27 Results at a Glance
Hindustan Zinc’s September-quarter results show that revenue growth translated into an even larger increase in operating profit. The company benefited from higher realisations for its metals, stronger production volumes and improved cost efficiency.
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹15,093 crore | ₹8,549 crore | +76.5% |
| Consolidated net profit | ₹6,412 crore | ₹2,649 crore | +142% |
| EBITDA | ₹9,285 crore | Approximately ₹4,465 crore | +108% |
| EBITDA margin | 62% | 52% | +10 percentage points |
| Zinc production cost, excluding royalty | $703/tonne | Approximately $990/tonne | -29% |
Figures are based on the company’s reported results and published coverage. EBITDA and margin figures are rounded.
The gap between revenue growth and profit growth is particularly significant. Revenue rose by roughly three-quarters, but net profit more than doubled. This indicates that stronger selling prices and better operating economics contributed alongside higher sales.
Total expenses increased 31.5% year-on-year to ₹6,895 crore, substantially slower than the increase in revenue. That difference helped the company retain a greater share of its sales as operating earnings.
Higher Zinc and Silver Prices Boost Revenue
Metal prices were a major driver of Hindustan Zinc’s quarterly performance. As a producer of zinc, lead and silver, the company benefits when the prices it receives for its output rise, provided production and other costs do not increase by an equivalent or greater amount.
Revenue from zinc sales increased 54% year-on-year to ₹8,224 crore. Silver sales revenue rose much faster, surging 141% to ₹4,111 crore. Sales of lead increased 35%, while revenue from other metals rose 151%, according to the reported results.
| Sales category | Q2 FY27 revenue | Year-on-year growth |
|---|---|---|
| Zinc | ₹8,224 crore | 54% |
| Silver | ₹4,111 crore | 141% |
| Lead | Not separately specified here | 35% |
| Other metals | Not separately specified here | 151% |
Silver has become an increasingly important contributor to the company’s financial performance. Hindustan Zinc said silver accounted for around 45% of its overall profitability during the first half of FY27.
That contribution makes the company’s earnings sensitive not only to zinc prices but also to movements in the silver market. When silver prices and sales realisations strengthen, the metal can provide a substantial boost to profitability. If prices reverse, however, that contribution could weaken.
The company also cited higher by-product realisations and a stronger US dollar as factors supporting its revenue performance. Because metals are traded internationally, currency movements can affect the rupee value of export-linked or benchmark-based realisations, although the precise impact depends on the company’s sales and cost structure.
Record Production Strengthens Operating Performance
Hindustan Zinc also increased output across its principal products during the quarter.
Mined metal production reached a record 271 kilotonnes, up 5% from a year earlier. Refined metal production increased 7% to 264 kilotonnes, while silver production rose 20% to 173 tonnes.
| Production metric | Q2 FY27 | Year-on-year growth |
|---|---|---|
| Mined metal | 271 kilotonnes | 5% |
| Refined metal | 264 kilotonnes | 7% |
| Silver | 173 tonnes | 20% |
Higher production can improve a mining company’s financial performance in several ways. It creates more output to sell when market demand and prices are favourable, while spreading certain fixed operating costs over a larger production base.
However, production growth alone does not guarantee stronger profits. The additional output must be produced economically and sold at attractive realisations. Mining operations can also face challenges related to ore quality, equipment availability, energy costs, transport and maintenance.
Hindustan Zinc’s quarterly results indicate that the company benefited from both higher output and improved unit costs. That combination helped it convert favourable market conditions into record earnings.
Zinc Production Costs Fall 29%
One of the most important operational developments was the reduction in zinc production cost, excluding royalty, to $703 per tonne. That was 29% lower than the year-ago level and also below the $851 per tonne reported in the first quarter of FY27.
The company attributed the improvement to better mined grades, increased metal production, higher renewable power consumption and stronger by-product realisations. These factors helped offset some of the pressure from higher input commodity prices and lower domestic coal usage.
Lower production costs matter because they can increase the difference between the selling price of a metal and the expense of producing it. When prices rise while unit costs fall, operating margins can improve sharply.
The reduction also gives Hindustan Zinc more flexibility if metal prices weaken. A lower cost base can help cushion some of the impact of falling selling prices, although it cannot fully protect earnings against a sustained commodity downturn.
The benefit from by-products requires particular attention. Higher prices for sulphuric acid, a by-product of zinc production, helped reduce the reported cost burden. Such benefits can change with market conditions, so they should not automatically be assumed to continue at the same level.
Hindustan Zinc Cuts Its FY27 Cost Forecast
Following the improvement in production costs, Hindustan Zinc reduced its full-year FY27 zinc cost forecast to $825–$850 per tonne from the earlier range of $975–$1,000 per tonne.
The revision suggests that management expects the efficiency gains to support the company’s cost position through the financial year. It also provides investors with an updated benchmark for evaluating the sustainability of the current earnings performance.
| Guidance metric | Earlier FY27 forecast | Revised FY27 forecast |
|---|---|---|
| Zinc production cost, excluding royalty | $975–$1,000/tonne | $825–$850/tonne |
The revised guidance is an annual forecast, not a promise that every quarter will record costs within that range. Production costs can vary with mine grades, energy consumption, maintenance schedules, input prices and by-product markets.
The quarterly cost of $703 per tonne was below the new full-year range. That does not necessarily mean the company can maintain such a low figure for the remainder of the year. Quarterly conditions may be unusually favourable, and management’s annual guidance accounts for potential variation across periods.
For investors, the next few quarters will show whether the cost improvements are structural and repeatable or partly dependent on favourable operating and commodity conditions.
First-Half Results Show Broad-Based Growth
Hindustan Zinc’s performance was also strong across the first half of FY27, covering the six months ended September 30, 2026.
Revenue from operations increased 77% year-on-year to ₹28,840 crore. EBITDA rose 108% to ₹17,359 crore, while net profit climbed 143% to ₹11,881 crore.
| First-half metric | H1 FY27 | Year-on-year growth |
|---|---|---|
| Revenue from operations | ₹28,840 crore | 77% |
| EBITDA | ₹17,359 crore | 108% |
| Net profit | ₹11,881 crore | 143% |
| Mined metal production | 539 kilotonnes | 3% |
| Refined metal production | 524 kilotonnes | 6% |
| Silver production | 321 tonnes | 10% |
The first-half figures show that the gains were not limited to one quarter. Higher metal prices, greater production and cost improvements supported earnings across the six-month period.
Still, investors will need to distinguish the company’s operational progress from external market support. Higher commodity prices can lift revenue and profits even without a comparable increase in production. Conversely, weaker prices could reduce earnings despite continued efficiency gains.
The sustainability of the first-half performance will depend on how production, costs and selling prices evolve during the second half of the financial year.
What the Results Mean for Vedanta and Investors
Hindustan Zinc is part of the Vedanta Group and is a major supplier to India’s zinc market. Its earnings are therefore important to investors tracking the mining company, the broader metals sector and the financial performance of its parent group.
The latest results demonstrate the potential benefits of combining favourable commodity prices with higher output and lower unit costs. Record EBITDA and a 62% margin show that the company converted a large share of its quarterly revenue into operating earnings before interest, taxes, depreciation and amortisation.
However, a strong earnings report does not by itself determine how a stock should perform. Investors also consider the valuation at which shares trade, expectations already reflected in the price, future commodity prices, dividends, capital spending and risks specific to the business.
The company’s revised cost guidance is particularly relevant because future earnings will depend partly on whether management can sustain the lower cost base. If prices remain supportive and costs stay controlled, profitability could remain strong. If metal prices decline or costs rise, the record quarterly margin may narrow.
For that reason, the results should be assessed alongside the company’s future production plans, investment requirements and outlook for the global zinc and silver markets.
The Bigger Picture
Hindustan Zinc’s Q2 FY27 results demonstrate how commodity producers can generate substantial earnings growth when selling prices, production and operating efficiency move in their favour. The 142% rise in net profit was supported by higher zinc and silver realisations, record production and a 29% decline in zinc production cost. Silver’s growing contribution also highlights the company’s exposure to more than one metal market.
The next challenge is to sustain the performance through changing market conditions. Lower production costs and improved output can strengthen resilience, but commodity prices and by-product realisations remain important variables. The revised FY27 cost forecast provides a useful measure for investors to monitor as the company moves through the second half of the financial year.
Looking Ahead
Investors will watch whether Hindustan Zinc can maintain its cost improvements, achieve its production targets and sustain strong silver and zinc realisations. Management’s revised annual cost forecast is an important development, but the full-year result will depend on conditions over the remaining quarters rather than the exceptional performance of Q2 alone.
The company is also progressing with an integrated zinc expansion project designed to add 250,000 tonnes of annual capacity, with engineering and procurement reported to be nearly complete and mine development underway. The project could support future output, but its contribution will depend on execution, capital requirements and market demand. For now, the main indicators to track are production costs, metal prices, output volumes and the extent to which the company can sustain its record margins.
Frequently Asked Questions
1. What was Hindustan Zinc’s Q2 FY27 net profit?
Hindustan Zinc reported consolidated net profit of ₹6,412 crore for the quarter ended September 30, 2026, up 142% from ₹2,649 crore a year earlier.
2. How much did Hindustan Zinc’s revenue increase?
Revenue from operations rose 76.5% year-on-year to ₹15,093 crore.
3. What was Hindustan Zinc’s Q2 EBITDA?
The company reported record quarterly EBITDA of ₹9,285 crore, up approximately 108% year-on-year. Its EBITDA margin expanded to 62% from 52%.
4. Why did Hindustan Zinc’s profit rise so sharply?
Higher zinc and silver prices, increased metal production, stronger by-product realisations and lower zinc production costs supported earnings. Expenses grew more slowly than revenue, also helping profitability.
5. What is Hindustan Zinc’s revised FY27 zinc cost forecast?
The company reduced its zinc production cost forecast, excluding royalty, to $825–$850 per tonne from the earlier range of $975–$1,000 per tonne.
6. How important is silver to Hindustan Zinc?
Silver sales revenue rose 141% year-on-year to ₹4,111 crore in Q2 FY27. The company said silver contributed around 45% of overall profitability during the first half of the financial year, making silver prices and production important earnings drivers.
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