Hindustan Zinc's net profit rose 142% to a record ₹6,412 crore in the September quarter, beating estimates, on record metal output, lower costs and strong silver sales. Silver delivered about 43% of the profit from its metals business despite falling prices.
At a glance
- Revenue from operations rose 76.5% to a record ₹15,093 crore, and EBITDA more than doubled to ₹9,285 crore.
- Zinc's cost of production, excluding royalty, fell 29% to $703 a tonne.
- Every $1 an ounce move in silver changes the company's annual EBITDA by ₹200 to 225 crore.
Background
Hindustan Zinc, part of the Vedanta group, mines zinc, lead and silver in Rajasthan. Silver comes out as a by-product of its zinc and lead mines in Rajasthan, so more ore mined means more silver. EBITDA, earnings before interest, tax, depreciation and amortisation, measures profit from operations.
What happened
Hindustan Zinc reported a consolidated net profit of ₹6,412 crore for July to September, up 142% from ₹2,649 crore a year earlier. That beat the CNBC-TV18 poll estimate of ₹5,821 crore. Revenue from operations rose 76.5% to a record ₹15,093 crore, against an estimate of ₹13,967 crore.
EBITDA more than doubled to a record ₹9,285 crore, and the margin widened to 62% from 52%. Mined metal production reached a record 271,000 tonnes, up 5%, and refined metal output rose 7% to 264,000 tonnes.
Silver did the heavy lifting
Silver revenue jumped 141% to ₹4,111 crore, even though the average LBMA silver price fell 14% from the previous quarter to $62.6 an ounce, NDTV Profit reported from the company's presentation. Volume made the difference: silver output rose 20% to 173 tonnes.
Silver made up about 27% of revenue but around 43% of the zinc, lead and silver business's profit. That reliance cuts both ways. By the company's own estimate, every $1 an ounce change in silver moves its annual EBITDA by ₹200 to 225 crore.
What it means
Lower costs also helped. The cost of producing zinc, excluding royalty, fell 29% to $703 a tonne on better ore grades, higher output and more renewable power. The company generated ₹6,389 crore of free cash flow before growth spending. "We remain focused on disciplined growth, AI-led innovation, and advancing our critical minerals portfolio," said chief executive Amarendu Prakash. The shares closed 0.3% lower at ₹538.40 before the results were announced.
Our read
Outlook: neutral. Record output adds modestly to zinc and silver supply, but the results reflect earlier prices rather than changing the market outlook.
What to watch
- Silver prices, given the company's ₹200 to 225 crore EBITDA sensitivity to each $1 an ounce move.
- Whether record mined output and lower zinc costs hold through the second half.
For information only, not investment advice.
Zinc price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-04: Hindustan Zinc reports record Q2 production, with silver up 20%.
- 2026-10-19: Hindustan Zinc reports record Q2 profit of ₹6,412 crore.
Supply Drivers
Better ore grades and more renewable power cut zinc's cost of production 29% to $703 a tonne.
Mining Production
Record mined output of 271,000 tonnes and 173 tonnes of silver lifted volumes.
What could lift prices
- Strong earnings let Hindustan Zinc keep investing in growth.
- Higher silver volumes can offset some of the fall in prices.
What could weigh on prices
- Record zinc and silver output adds supply to both markets.
- Silver's 14% quarterly price fall shows the earnings risk if prices keep sliding.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | Medium | Its largest zinc and silver producer posted record output and profit. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Mining | Positive | Record output and lower costs lifted margins to 62%. |
Who gains, who loses
- Hindustan Zinc shareholders: Profit more than doubled and beat analysts' estimates.
- Vedanta: Its most profitable subsidiary posted record earnings.
- Higher-cost zinc producers: Hindustan Zinc's $703-a-tonne cost puts it far down the cost curve.
Other ways this could play out
- If silver prices recover, the company's earnings could rise further on higher volumes.
- If silver keeps falling, each $1 an ounce drop would cut annual EBITDA by ₹200 to 225 crore.
Price risks
- Further silver weakness would hit the company's biggest profit driver.
- Rising input costs linked to geopolitics could erode the zinc cost advantage.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
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