Hindustan Zinc Q2FY26 Profit Surges 14% YoY to ₹2,649 Crore on Record Revenue and Low Costs

Udaipur, October 17, 2025: Hindustan Zinc Limited (NSE: HINDZINC, BSE: 500188) registered 14% year-on-year growth in consolidated net profit to ₹2,649 crore during the quarter ended September 30, 2025, on the back of record revenue, stable operating margins, and decreased cost of production. This was the highest ever second-quarter revenue and EBITDA of the company, which indicates sustainable cost efficiency and demand.

However, despite profits surging, Hindustan Zinc Ltd’s share price closed at ₹498.90 on October 17, 2025, a 1.54% dip. Hindustan Zinc Ltd shares have gained 12.3% year-to-date and 8.5% in the last month.

Key Financial Highlights (₹ crore)

Hindustan Zinc Limited reported strong quarter performance in the quarter ended September 2025 (Q2 FY26) with the help of higher volumes of production and higher metal realizations.

Revenues from operations increased 4% year-on-year to ₹8,549 crore from ₹8,252 crore in Q2 FY25 and increased 10% sequentially from ₹7,771 crore in Q1 FY26. EBITDA was up 7% YoY to ₹4,467 crore and increased 16% QoQ, and margins increased to 52%, from 50% a year earlier. Profit After Tax (PAT) was ₹2,649 crore, a 14% YoY and 19% QoQ increase. Earnings per share (EPS) also increased to ₹6.3 from ₹5.5 in Q2 FY25.

It was fueled by all-time-high mined metal production of 258 Kt, a 5-year low in zinc cost of production at $994 per tonne, and healthy prices for zinc and silver. Silver accounted for around 40% of total profit, and production in the quarter reached 144 MT.

Segment Performance

Hindustan Zinc Limited delivered stable growth across key segments in Q2 FY26. The zinc segment remained the leading contributor, with revenue up 5% year-on-year to ₹5,354 crore in Q2 FY26, from ₹5,078 crore in Q2 FY25. On the other hand, the lead segment dropped by 30% to ₹840 crore from ₹1,194 crore in the corresponding quarter in the previous year.

Silver division showed a healthy 10% increase, with revenue rising to ₹1,706 crore from ₹1,550 crore, and ‘others’ surged 51% to ₹649 crore from ₹430 crore, driven by higher by-product sales and higher realisations.

Total revenue rose 4% year-on-year to ₹8,549 crore. EBITDA growth was supported by reduced input costs, stronger by-product realisations, and a firmer US dollar, which enabled the company to expand margins to 52% during the quarter. EBITDA growth was supported by lower input costs, stronger realisation of by-products, and a firmer US dollar, which drove margin expansion to 52%.

Operational and ESG Milestones

• Commissioned 160 Ktpa Roaster at Debari and finished debottlenecking at Dariba Smelting Complex
• Sanctioned India’s first 10 Mtpa zinc tailing reprocessing plant at Rampura Agucha.
• Reached fatality-free operations and was the first Indian company to become a member of the International Council on Mining & Metals (ICMM).
• Signed MoUs to introduce 100 more EV and LNG trucks, expanding the total fleet to 400.
• Acclaimed with a number of sustainability awards, including the ISC-FICCI Sanitation Award and the CII National Award for Environmental Best Practices 2025.

Management Commentary

Arun Misra, CEO, said that “We have delivered our strongest-ever second quarter of mined metal production and lowest five-year zinc cost, demonstrating operational excellence and sustainable development commitment. Membership in ICMM marks a moment of pride, affirming our mining industry leadership in responsible mining.”

Sandeep Modi, CFO, added, “Assisted by silver significantly boosting our profitability, our cost effectiveness and diversification of the portfolio have enabled steady performance. Inclusion in Nifty 100 and Nifty Next 50 reflects our healthy fundamentals and investor confidence.”

Balance Sheet and Outlook

Until September 30, 2025, Hindustan Zinc’s cash and investments stood at ₹8,155 crore and total borrowings at ₹10,702 crore, which meant net debt of ₹2,547 crore compared to ₹4,185 crore in the prior quarter. The corporation has a AAA credit ranking with CRISIL.

FY26 Revised Guidance

Hindustan Zinc has aggressive financial and operational performance goals in FY26 to recharge its growth momentum. Mined metal production stands at about 1,125 kilotonnes (±10 Kt) and refined metal at around 1,075 kilotonnes (±10 Kt).

Salable silver production is projected at 680 metric tonnes (±10 MT) in the financial year. On the cost side, the company’s cost of production in the zinc division is approximately US$1,000 per metric tonne, indicating ongoing concerns about costs and operational efficiency. In addition, the company made a growth capital expenditure (capex) of US$350–400 million in FY26 to bolster expansion projects and long-term production capabilities.

Strategic Projects

• Fertiliser Plant (510 Ktpa) progressing; completion expected by Q1FY27.
• Lead and silver extraction via hot acid leaching, to be finalized by Q4FY26.
• Increment in integrated refined metal production capability by 250 Ktpa with ₹12,000 crore Capex; commissioning poised in Q2FY29.
• Rampura Agucha tailings reprocessing project (₹3,823 crore) to finish by Q4FY28.

REF: https://nsearchives.nseindia.com/corporate/HINDZINCNSE_17102025143836_SEPressRelease17102025_-_Final.pdf

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