Q2 FY27 · NSE: HINDZINC

Hindustan Zinc

Results filed 19 October 2026 · Market cap ₹2,13,717 crore · PE 10.4

GrowthGuidance raisedTranscript read

Revenue: +76.5%; on a year ago
EBITDA: +108.1%; on a year ago
Profit to shareholders: +142.1%; on a year ago
EBITDA margin: 61.3%; +2.7 pts on last quarter

Hindustan Zinc reported strong Q2 FY27 performance with revenue growing over 75% YoY and EBITDA doubling on the back of higher production and supportive commodity prices. Quarterly zinc cost of production fell to $703 per ton, prompting management to improve full-year COP guidance to $825-$850 per ton. Growth capex continues for the 250 KTPA zinc expansion and critical mineral blocks, supported by a net cash balance of INR 11,268 crore.

Hindustan Zinc Limited, Q2 FY27₹ crore, consolidated

	Q2 FY27	Q1 FY27	vs previous quarter	Q2 FY26	vs a year ago
Revenue	15,093	13,747	+9.8%	8,549	+76.5%
Operating profit (EBIT)	8,286	7,130	+16.2%	3,563	+132.6%
Operating margin	54.9%	51.9%	+303 bps	41.7%	+1322 bps
Other income	374	316	+18.4%	238	+57.1%
Exceptional items	0	0	–	0	–
Profit before exceptional items and tax	8,572	7,314	+17.2%	3,542	+142.0%
Profit to shareholders	6,412	5,469	+17.2%	2,649	+142.1%
Earnings per share (₹)	15.18	12.94	+17.3%	6.27	+142.1%

Source: Hindustan Zinc Limited’s filing to NSE, 19 October 2026. Operating profit is revenue less every expense except interest, so it leaves out other income and exceptional items. n.m.: not meaningful, because the earlier figure was zero or negative, or the latest one is a loss.

What stood out

Zinc cost of production dropped to $703 per ton in Q2, prompting management to revise full-year COP guidance downward to $825-$850 per ton from $975-$1,000 per ton.
Source
Amarendu Prakash, Transcript page 4: 'Our zinc cost of production in second quarter FY27 stands at $703 per ton... we are revising our COP guidance to $825 to $850 for the full year.'
Company closed the quarter with a net cash balance of INR 11,268 crore and generated INR 6,389 crore of free cash flow before growth capex.
Source
Amit Gupta, Transcript page 6: 'Generating INR6,389 crores of free cash flow before growth capex during the quarter... We closed the quarter with net cash balance of INR11,268 crores'

Guidance

Metric	Guidance	Period
Zinc Cost of Production (COP) Source Amarendu Prakash, Transcript page 4: 'Zinc cost of production, we had guided earlier... projection of $975 to $1,000. However, looking at the current improvements... revising our COP guidance to $825 to $850 for the full year.'	Revised downwards to $825 to $850 per ton (from $975 to $1,000 per ton)	FY27
Silver Production Source Amit Gupta, Transcript page 8: 'Yes. So, we are confident we will be able to deliver our guidance of 680.'	680 tons maintained	FY27
Total Capex Source Amit Gupta, Transcript page 8: 'So, whole-year outlook, we are on the same line, the way we have guided, the whole-year outlook is in the range of INR5,000 crores only.'	Around INR 5,000 crores maintained	FY27

Cost of production guidance improved significantly from $975-$1,000/t to $825-$850/t; capex and silver volume guidance maintained.

Tailwinds

Strong volume growth across mined metal (+5% YoY), refined metal (+7% YoY), and saleable silver (+20% YoY to 173 tons).
Source
Amarendu Prakash, Transcript page 4: 'mined metal production has risen 5% year-on-year... refined metal production has risen 7% year-on-year... saleable silver production has risen 20% year-on-year. This stands at 173 tons in this quarter.'
Tailwinds from higher commodity prices, robust byproduct realization (sulfuric acid), and lead concentrate monetization (10 KT sold generating INR 300 crore revenue and INR 155 crore profit).
Source
Amit Gupta, Transcript pages 5 & 8: 'This growth was led by higher metal production and supportive commodity prices, with better by-product realization, lead concentrate sale, and a stronger dollar... Overall revenue generated is INR300 crores, and out of this, profits created INR155 crores.'

Headwinds

Geopolitical tensions and disruptions causing cost escalations of approximately $50 per ton.
Source
Amit Gupta, Transcript page 7: 'and there are cost escalations also because of the geopolitical issues. So, that is impacting us almost by $50.'

New businesses and products

capacity expansion · Engineering and procurement almost complete, mine development underway

250 KTPA integrated zinc expansion

Expected benefit: Supports 2x growth ambition

Source

Amarendu Prakash, Transcript page 4: 'Engineering and procurement for the 250 KTPA integrated zinc expansion is almost complete, and mine development is underway.'

capacity expansion · Progressing as per plan

10 MTPA tailing reprocessing plant

Expected benefit: Unlocking greater value from resources

Source

Amarendu Prakash, Transcript page 4: 'Similarly, the 10 million tons per annum tailing reprocessing plant is also progressing as per plan.'

new business · Exploration ongoing for three blocks; mining lease executed for Gundlupet REE & Yttrium block

Critical mineral blocks (three exploration blocks and Gundlupet REE & Yttrium mining lease)

Expected benefit: Diversification into critical minerals and REE
Risks: Exploration findings uncertain until conclusion
Timeline: Exploration program finishing Q3 FY29; Gundlupet business plan expected in 2 to 3 years

Source

Amarendu Prakash, Transcript page 8: 'Three out of those four are exploration blocks... we will be finishing our exploration program in the third quarter of FY29... One, the Gundlupet REE Block and Yttrium Block, it is a mining lease, and we have executed that mining lease... business plan in 2, 3 years.'

Things to check

Revenue up over 60%: check for an acquisition or a weak year-ago quarter

How the call went

The call provided useful color on hedges, capex, and production volumes, but management deflected multiple analyst requests for itemized sulfuric acid realizations and core COP metrics.

Specific or vague: Management provided clear figures for hedging positions, Q2 capex split, and revised cost guidance, but refused to disclose exact revenue/contribution figures for sulfuric acid byproducts.
Candour: Management openly acknowledged $50/t cost headwinds from geopolitical events, but stonewalled on giving sulfuric acid credit figures separate from COP.
The hard questions: Analysts pressed for the exact COP breakdown excluding sulfuric acid credits, sulfuric acid revenue trends, and silver production visibility for FY28.

What analysts pressed on

Sustainability of low COP without byproduct credits
Visibility on sulfuric acid realizations
Progress and timeline on new critical mineral leases
FY28 silver production trajectory

Answers that sidestepped

Amit Gupta repeatedly refused to give sulfuric acid revenue numbers or COP excluding byproduct credits: 'Again, I am saying we are not giving any guidance or any number on the sulfuric acid, because it is a byproduct for us, and we sell it in a auction price.' (Transcript page 8)

Numbers against the story

The reported figures and management commentary are well aligned; management cited revenue of INR 15,093 crore (+77% YoY) and EBITDA of INR 9,285 crore (+108% YoY), matching the reported standalone numbers (sales INR 14,961 crore, up 75.5% YoY; EBITDA INR 9,134 crore, up 106.4% YoY). The 9.13pp expansion in reported EBITDA margin reflects operating leverage and byproduct tailwinds as claimed.

Sources

Concall transcript · filed 23-Oct-2026
Figures: the company’s results filing with NSE, linked under the table.

Notes written by gemini-3.8-flash from the documents above on 1 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.