Hindustan Zinc Q2 net profit surges 142 pc to Rs 6,412 crore; revenue hits record Rs 15,093 crore
Hindustan Zinc reports record Q2 revenue of Rs 15,093 crore and a massive profit surge driven by higher metal prices and production.
Hindustan Zinc Limited has delivered a powerhouse performance for the second quarter of the financial year 2026-27, reporting a massive 142 per cent year-on-year surge in its consolidated net profit. The company's bottom line rocketed to Rs 6,412 crore, a stark leap from the Rs 2,649 crore recorded during the same period last year.
Record-Breaking Revenue and Earnings
The company didn't just stop at profit growth; it hit a historic milestone in its top line. Revenue from operations soared by 77 per cent to reach a record-breaking Rs 15,093 crore, compared to Rs 8,549 crore in the previous year's corresponding quarter.
The operational efficiency is further highlighted by the Earnings before interest, tax, depreciation and amortisation (EBITDA), which more than doubled. EBITDA grew by 108 per cent to hit a record Rs 9,285 crore, with the EBITDA margin expanding to 62 per cent from 52 per cent last year.
What Fueled This Growth?
The company attributed this stellar financial health to a combination of favorable market conditions and internal efficiencies, including:
- Market Dynamics: Higher metal prices and a stronger US dollar.
- Production Boost: Increased output across its metal categories.
- Cost Management: A significant reduction in production costs and improved realizations from by-products.
Operational Milestones: Production Hits New Highs
Hindustan Zinc has pushed its operational boundaries to new limits this quarter. Mined metal production reached a record 271 kilotonnes (KT), marking a 5 per cent increase. Refined metal production also hit its best-ever second-quarter level at 264 KT, up by 7 per cent.
Silver production emerged as a key profit driver, growing by 20 per cent year-on-year to reach 173 tonnes. On the cost front, the company managed to slash the production cost for zinc (excluding royalty) by 29 per cent, bringing it down to USD 703 per tonne from USD 994 per tonne last year.
This cost reduction was driven by better mined grades, higher renewable energy usage, and increased metal production, although these gains were slightly tempered by higher input commodity prices and lower domestic coal usage.
The Big Picture: Half-Yearly Performance and Demand
The momentum continued throughout the first half of FY27. For the six-month period, the company reported:
- Revenue: Rs 28,840 crore (up 77%).
- EBITDA: Rs 17,359 crore (up 108%).
- Net Profit: Rs 11,881 crore (up 143%).
- Mined Metal: Record 539 KT.
- Refined Metal: 524 KT.
- Silver: 321 tonnes.
Financially, the company remains robust, generating a free cash flow of Rs 11,642 crore before growth capital expenditure. As of September 30, 2026, Hindustan Zinc held gross investments and cash totaling Rs 17,439 crore against outstanding borrowings of Rs 6,171 crore.
Market Outlook: The Steel Connection
The demand for zinc remains strong in India, primarily due to its essential role in galvanising steel to prevent corrosion. With finished steel consumption rising by 7.5 per cent to 84.9 million tonnes between April and September 2026, the outlook for zinc demand remains positive.
A Shift Toward Sustainability
Beyond the balance sheet, Hindustan Zinc is pivoting toward a greener future. Renewable energy now accounts for 27 per cent of the company's total power consumption. Notably, its zinc alloy plant has transitioned to 100 per cent renewable energy.
The company is also electrifying its mining operations. New initiatives include the deployment of an electric crane at Rajpura Dariba, an electric cherry-picker at Rampura Agucha, and a partnership with MFL India to introduce 30 electric trucks at the Rampura Agucha site.
"I am honored to lead Hindustan Zinc at this pivotal stage. Our record quarterly mined metal production of 271 KT and refined metal production [reflect our strength]," stated CEO Amarendu Prakash.