THEBUSINESSBYTES BUREAU

UDAIPUR, OCTOBER 19, 2026

Hindustan Zinc Ltd on Monday reported a 142 per cent year-on-year surge in consolidated net profit to Rs 6,412 crore for the July-September quarter (Q2) of FY27, backed by record production, higher metal prices and a sharp decline in zinc production costs.

The company, the world's largest integrated zinc producer, also posted its highest-ever quarterly earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs 9,285 crore, marking a 108 per cent increase over Rs 4,467 crore in the year-ago period.

Revenue from operations jumped 77 per cent to a record Rs 15,093 crore during the July-September quarter, compared with Rs 8,549 crore a year earlier. The EBITDA margin expanded to an industry-leading 62 per cent from 52 per cent in the corresponding quarter last fiscal, reflecting improved operational efficiency and robust realisations.

Operational performance remained strong, with mined metal production reaching a record second-quarter level of 271,000 tonnes, up 5 per cent year-on-year, while refined metal output rose 7 per cent to an all-time second-quarter high of 264,000 tonnes.

Silver production increased 20 per cent to 173 tonnes, providing a significant boost to profitability. The company said higher metal prices, increased production, improved by-product realisations and a stronger dollar contributed to the growth in revenue and earnings.

A key driver of profitability was the reduction in zinc cost of production, excluding royalty, which fell 29 per cent year-on-year to USD 703 per tonne during the quarter, against USD 994 per tonne a year earlier.

The decline was supported by better mined grades, higher metal production, increased renewable power consumption and improved by-product realisations. These gains partly offset the impact of lower domestic coal usage and higher input commodity prices amid the prevailing global geopolitical situation.

For the first half of FY27, Hindustan Zinc reported a 77 per cent rise in revenue from operations to Rs 28,840 crore. EBITDA more than doubled to Rs 17,359 crore, up 108 per cent year-on-year, while net profit surged 143 per cent to a record Rs 11,881 crore.

Silver continued to contribute around 45 per cent to the company's overall profitability during the first half, underlining its growing importance in the business portfolio.

Commenting on the performance, Chief Executive Officer Amarendu Prakash said record mined and refined metal production reflected the strength of the company's operations, assets and workforce.

The company would remain focused on disciplined growth, artificial intelligence-led innovation and expanding its critical minerals portfolio to support India's energy transition, while creating long-term value for stakeholders, he said.

Chief Financial Officer Amit Gupta said the record quarterly EBITDA and net profit, coupled with strong cash generation and a robust balance sheet, reflected the company's emphasis on financial discipline and productivity.

Hindustan Zinc had gross investments and cash of Rs 17,439 crore as of September 30, 2026, while its outstanding borrowings stood at Rs 6,171 crore. The company also retained its AAA credit rating from CRISIL.

In a move to diversify beyond its core zinc and silver businesses, the company secured a Letter of Intent for the Gundlupet Rare Earth Element and Yttrium Block in Karnataka, advancing its presence in the critical minerals segment.

During the first half of FY27, the company contributed Rs 13,027 crore to the national exchequer through taxes, duties and mining royalties, including Rs 3,724 crore to the Rajasthan government

Hindustan Zinc, a Vedanta Group company, supplies metals to more than 30 countries and commands around 74 per cent of India's primary zinc market.