Hindustan Zinc Reports Historic Q1 FY27 Performance: Revenue Surges 77% YoY to ₹13,747 Crore with Industry-Leading 59% EBITDA Margin

Hindustan Zinc Limited, the world's largest integrated zinc producer, has announced its unaudited consolidated financial results for the first quarter ended June 30, 2026 (Q1 FY27). Driven by higher metal prices, record operational achievements, increased metal production, and strong by-product realizations, the company delivered a standout performance with a 77% year-on-year (YoY) surge in operational revenue and a 145% YoY increase in net profit.

Unprecedented Revenue Growth & Profitability

For Q1 FY27, Hindustan Zinc achieved its highest-ever revenue from operations of ₹13,747 crore, marking a 77% YoY jump compared to ₹7,771 crore reported in Q1 FY26. Sequentially, operational revenue grew 1% against ₹13,544 crore recorded in Q4 FY26. Revenue growth was bolstered by higher London Metal Exchange (LME) prices, a stronger US dollar, lead concentrate sales, and robust by-product realizations.

EBITDA for the quarter rose by 109% YoY to ₹8,074 crore, up from ₹3,860 crore in Q1 FY26. The company maintained an industry-leading EBITDA margin of approximately 59%, representing a substantial expansion of around 900 basis points YoY.

Consolidated net profit after tax reached ₹5,469 crore for Q1 FY27, up 145% YoY from ₹2,234 crore in Q1 FY26 and 9% higher sequentially compared to ₹5,033 crore in Q4 FY26. Basic and diluted earnings per share (EPS) stood at ₹12.94 for the quarter (face value ₹2 per share), rising from ₹5.29 in Q1 FY26. The effective tax rate for the quarter was 25.23%.

Operational Milestones & Cost Efficiency

Mined Metal Production: Reached its highest-ever first-quarter volume of 268 kilotonnes (KT), achieving this milestone for the fifth consecutive year.

Refined Metal Production: Stood at 260 KT, up 4% YoY. This comprised 213 KT of refined zinc (up 6% YoY) and 47 KT of refined lead.

Silver Production: Recorded at 149 tonnes, remaining flat YoY and contributing approximately 46% toward overall profitability.

Zinc Cost of Production (CoP): Dropped to $851 per tonne (excluding royalty), improving by 16% YoY. The cost reduction was driven by better mined grades, increased volume, higher renewable power consumption, and stronger by-product realizations, which effectively offset higher input commodity prices and lower domestic coal usage.

Clean Energy Integration: Renewable power consumption scaled up to 22% of overall power usage. Wind power generation reached 133 million units during the quarter.

Revenue Contribution by Business Segments

1. Zinc, Lead, and Silver Division

Segment revenue for the core metals division expanded to ₹12,985 crore in Q1 FY27, up from ₹7,542 crore in Q1 FY26.

Zinc, Lead & Others Revenue: Generated ₹9,146 crore, compared to ₹6,116 crore in Q1 FY26.

Silver Revenue: Generated ₹3,839 crore, up 169% YoY compared to ₹1,426 crore in Q1 FY26.

Segment Profit: The metals segment delivered a profit before interest and tax of ₹7,173 crore, up sharply from ₹2,967 crore in Q1 FY26.

2. Wind Energy Division

The wind energy division generated revenue of ₹48 crore during the quarter (versus ₹49 crore in Q1 FY26), yielding a segment profit before interest and tax of ₹27 crore.

Financial Position, Balance Sheet Ratios & Exchequer Contribution

Hindustan Zinc maintained a strong balance sheet supported by healthy cash flow generation:

Cash and Investments: Gross investments and cash reserves stood at ₹12,892 crore as of June 30, 2026. Total outstanding borrowings were recorded at ₹7,320 crore.

Free Cash Flow: Strong pre-growth capex free cash flow reached ₹5,253 crore.

Credit Rating: The company maintained its AAA investment-grade credit rating from CRISIL.

Net Worth & Ratios: Net worth increased to ₹23,587 crore. The debt-to-equity ratio improved to 0.31 times (down from 1.19 times in Q1 FY26), while the interest service coverage ratio stood at a healthy 53.02 times.

Dividends & Exchequer: The Board announced a 1st interim dividend of ₹11 per share (550% of face value), amounting to a total payout of ₹4,648 crore. Furthermore, the company contributed approximately ₹6,450 crore to the national exchequer during the quarter, including ₹1,700 crore to the Rajasthan state exchequer toward mining royalties and taxes.

Strategic Project Updates

510 KTPA Fertilizer Plant: Construction is progressing on schedule and is targeted for completion by Q2 FY27.

Hot Acid Leaching Technology: The innovative recovery process for lead and silver from smelting waste at Dariba is expected to be completed by Q2 FY27.

250 KTPA Debari Zinc Expansion: Mine development has commenced, and detailed engineering and supply ordering are underway. The integrated expansion project is scheduled for completion by Q2 FY29.

10 MTPA Tailings Reprocessing Plant: Major supply orders have been placed and construction has begun at Rampura Agucha for India's first large-scale tailings reprocessing plant, targeted for completion by Q4 FY28.

Critical Minerals Expansion: Hindustan Zinc secured a mining lease for the Gundlupet rare earth elements (REE) and Yttrium block in Karnataka.

Mr. Amarendu Prakash appointed as the Chief Executive Officer and Whole-time Director

The Board of Directors has appointed Mr. Amarendu Prakash as the Chief Executive Officer and Whole-time Director of Hindustan Zinc Limited, effective August 01, 2026. A distinguished leader with over three decades of experience in India's steel sector, he previously served as the Chairman & Managing Director of SAIL from 2023 to 2026. During his tenure, he led transformative initiatives spanning operational excellence, capacity expansion, digital transformation, and organisational performance across one of India's largest steel producers.

Mr. Amit Gupta appointed as the Chief Financial Officer

Mr. Amit Gupta assumed the role of Chief Financial Officer of Hindustan Zinc Limited with effect from June 01, 2026. A qualified Chartered Accountant with over two decades of experience, he brings deep expertise in strategic finance, capital allocation, business transformation, cost optimization, and corporate governance across Vedanta Group companies.

Commenting on Hindustan Zinc's performance, Arun Misra, Chief Executive Officer, said: "We have started the year on a strong note with our highest-ever first quarter mined metal production of 268 KT for the fifth consecutive year, reflecting the strength of our world-class assets and our relentless focus on operational excellence. Our debottlenecking initiatives continue to enhance refined metal production and reinforce our position as one of the world's lowest-cost zinc producers. As demand for zinc continues to be driven by infrastructure and the energy transition, we remain committed to delivering responsible growth and long-term value for our stakeholders."

Amit Gupta, Chief Financial Officer, said: "Hindustan Zinc delivered a strong quarter, with net profit surging 145% YoY to a record ₹ 5,469 crore, driven by the highest-ever quarterly EBITDA of ₹ 8,074 crore, up 109% YoY. This performance reflects our unwavering focus on operational excellence, cost competitiveness and disciplined financial management. Backed by a strong balance sheet and prudent capital allocation, we remain wellpositioned to deliver consistent growth while continuing to generate sustainable long-term value for our stakeholders."

Shares of Hindustan Zinc Limited was last trading in BSE at Rs. 531.10 as compared to the previous close of Rs. 535.50. The total number of shares traded during the day was 185792 in over 4462 trades.

The stock hit an intraday high of Rs. 541.40 and intraday low of 530.15. The net turnover during the day was Rs. 99452702.00.

Source : Equity Bulls

Keywords

HindustanZinc INE267A01025 Q1FY27 Q1FY2027 ResultUpdate