The Vedanta Group company reported strong growth in revenue and silver sales during the September quarter. It also maintained its annual silver production target while progressing with plans to expand its zinc production capacity.
Hindustan Zinc Share Quarterly Profit Rises to Rs 6,412 Crore
Hindustan Zinc reported consolidated net profit of Rs 6,412 crore for the quarter ended September 30, compared with Rs 2,649 crore in the corresponding quarter of the previous year.
Stronger zinc prices and improved production performance supported the significant increase in profitability. Higher by-product realisations also helped reduce the company’s overall production costs.
Hindustan Zinc is one of India’s leading zinc producers, with approximately three-fourths of the country’s primary zinc market, according to the reported figures.
Hindustan Zinc Share Cuts FY27 Zinc Production Cost Forecast
The company has reduced its zinc production cost forecast for fiscal year 2027 to $825–$850 per tonne, from its earlier estimate of $975–$1,000 per tonne.
Chief Executive Amarendu Prakash shared the revised outlook during the company’s post-earnings call.
The improved cost outlook reflects higher production volumes, better ore grades, and stronger realisations from by-products. Higher sulphuric acid prices also contributed to lower reported production costs, although the company noted that these benefits can fluctuate with market conditions.
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Hindustan Zinc Share Quarterly Performance
| Financial Metric | Reported Figure |
|---|---|
| Consolidated net profit | Rs 6,412 crore |
| Net profit in the year-ago quarter | Rs 2,649 crore |
| Revenue from operations | Rs 15,093 crore |
| Revenue growth year-on-year | 76.5% |
| Total expenses | Rs 6,895 crore |
| Expense growth year-on-year | 31.5% |
| Mined metal production | 271,000 tonnes |
| Refined metal production | 264,000 tonnes |
| Zinc production cost | $703 per tonne |
| Year-on-year reduction in production cost | 29% |
Figures are based on the reported results for the September quarter.
Higher Zinc Prices Support Earnings Growth
Rising zinc prices played an important role in improving Hindustan Zinc financial performance.
Supply constraints and expectations of a global zinc deficit supported metal prices during the quarter. The company expects the global refined zinc market to face a supply deficit of approximately 180,000 tonnes in 2026, amid mine closures and declining ore grades.
Hindustan Zinc’s mined metal production increased 5% year-on-year to 271,000 tonnes. Refined metal production rose 7% to 264,000 tonnes.
The combination of improved production, favourable metal prices, and stronger by-product realisations helped the company deliver higher profitability.
Hindustan Zinc Silver Production Target Remains at 680 Tonnes
Silver continued to contribute to the company’s performance, supported by firm demand in India.
Chief Executive Amarendu Prakash said the company remained confident of achieving its fiscal 2027 silver production target of 680 tonnes.
Hindustan Zinc produced 321 tonnes of silver during the first half of the fiscal year. Silver production in the September quarter increased 20% year-on-year to 173 tonnes.
Revenue from silver sales more than doubled, reflecting the strength of the precious metal market and the company’s production performance.
The company also benefited from silver import duties, while domestic demand for the metal remained relatively strong.
Hindustan Zinc’s Expansion Plans
Hindustan Zinc is advancing plans to expand its zinc production capacity through an integrated project with a proposed annual capacity of 250,000 tonnes.
According to the company’s reported update, engineering and procurement activities were nearing completion, while mine development work was underway.
The expansion could strengthen the company’s production capabilities over time, although the project’s eventual contribution will depend on execution, commissioning, and market conditions.
What Should Investors Watch?
Hindustan Zinc’s latest results highlight the impact that metal prices, production volumes, and operating costs can have on a mining company’s profitability.
Investors tracking the stock may want to monitor the following factors:
- Zinc prices: Changes in global supply and demand could affect future earnings.
- Production costs: The company’s ability to maintain lower costs will be important for profitability.
- Silver performance: Strong production and prices may continue to support revenue.
- Expansion progress: Investors should track project execution and capacity additions.
- Global metal demand: Industrial demand and mine supply conditions may influence future prices.
Conclusion
Hindustan Zinc Share delivered strong quarterly earnings growth, with net profit more than doubling as higher metal prices and improved operating performance supported its results.
The company also lowered its FY27 zinc production cost forecast and maintained its silver production target of 680 tonnes. Meanwhile, progress on its planned zinc expansion could support future production growth.
However, future performance will depend on metal prices, operating costs, project execution, and global demand.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to market risks. Consult a SEBI-registered investment adviser before making investment decisions.
