Quarterly Earnings
Hindustan Zinc Reports Record Q1 FY27 Results with 145% YoY Profit Growth and Highest-Ever Quarterly EBITDA
NSE
HINDZINC
BSE
500188
Hindustan Zinc Limited (HZL) delivered its strongest-ever first-quarter performance, reporting record quarterly net profit of ₹5,469 crore (+145% YoY) and record EBITDA of ₹8,074 crore (+109% YoY). The company also achieved record revenue, industry-leading EBITDA margin, lowest zinc production cost, declared a generous interim dividend, and announced key leadership appointments.
PRICE-SENSITIVE TRIGGER
Event: Q1 FY27 Financial Results
Type: Quarterly Earnings
Impact: Positive
Immediate Effect: Record profitability, strong cash generation, lower production costs, healthy balance sheet, and higher shareholder returns reinforce Hindustan Zinc’s leadership in the global zinc industry.
Metrics:
Key Financial Metrics:
- Revenue from Operations: ₹13,747 crore (+77% YoY)
- EBITDA: ₹8,074 crore (+109% YoY)
- EBITDA Margin: 59%
- Net Profit (PAT): ₹5,469 crore (+145% YoY)
- Earnings Per Share (EPS): ₹12.9 (+145% YoY)
- Mined Metal Production: 268 KT (+1% YoY)
- Refined Metal Production: 260 KT (+4% YoY)
- Silver Production: 149 tonnes (Flat YoY)
- Zinc Cost of Production: US$851/MT (-16% YoY)
- Free Cash Flow (Pre-growth Capex): ₹5,253 crore
- Cash & Investments: ₹12,892 crore
- Outstanding Borrowings: ₹7,320 crore
Segment Performance:
- Zinc sales increased 48% YoY.
- Lead sales grew 25% YoY.
- Silver sales surged 169% YoY.
- Other operating revenue increased 183% YoY.
Highlight:
- Record Net Profit: ₹5,469 crore (+145% YoY)
What Happened ?
Hindustan Zinc reported record quarterly earnings driven by higher metal prices, increased production, lower production costs and stronger by-product realizations. The company also achieved its highest-ever first-quarter mined metal production while maintaining one of the industry’s highest EBITDA margins. Alongside strong financial performance, the company declared its first interim dividend of ₹11 per share and continued progress across multiple expansion projects.
key details
Operational & Business Highlights:
- Achieved highest-ever first-quarter mined metal production of 268 KT for the fifth consecutive year.
- Refined metal production increased 4% YoY to 260 KT.
- Zinc cost of production declined 16% YoY to US$851 per tonne.
- Silver production remained stable at 149 tonnes, contributing nearly 46% of profitability.
- Revenue from operations reached an all-time quarterly high of ₹13,747 crore.
- EBITDA margin expanded to approximately 59%.
- Renewable power consumption increased to 22% of total power usage.
- Secured a mining lease for Gundlupet Rare Earth Elements and Yttrium Block in Karnataka.
- Declared first interim dividend of ₹11 per equity share.
- Contributed approximately ₹6,450 crore to the national exchequer during the quarter.
Note:
- Major capital projects continue to progress, including the 510 KTPA fertiliser plant, Debari zinc expansion, Dariba hot acid leaching facility and Rampura Agucha tailings reprocessing plant, supporting future production growth.
Risk Analysis
Summary:
- The company maintains a strong balance sheet and industry-leading cost position; however, earnings remain exposed to commodity prices, input costs and global macroeconomic conditions.
Key Risks:
- Profitability is sensitive to zinc, lead and silver price movements.
- Exchange rate fluctuations may impact realizations.
- Rising input commodity costs could affect margins.
- Project execution timelines remain important for future capacity expansion.
- Global geopolitical developments could influence operating costs and metal demand.
Worst Case:
- A combination of weaker metal prices, higher production costs and project execution delays could reduce margins and slow earnings growth.
Risk Level: Medium
Company Commentary
- Management highlighted record first-quarter mined metal production and continued operational excellence across mining and smelting operations.
- The company reaffirmed its position as one of the world’s lowest-cost zinc producers through sustained cost optimization.
- Management stated that disciplined capital allocation and a strong balance sheet position the company for long-term sustainable growth.
- The company remains focused on expanding production capacity while strengthening ESG performance and renewable energy adoption.
Official Exchange Filing: Hindustan Zinc Limited
