Hindustan Zinc made a record 264,000 tonnes of refined metal in the July-September quarter, up 7% from a year earlier, as new capacity at its smelters came on stream. Its silver output jumped 20% to 173 tonnes.
At a glance
- Mined metal output rose 5% to 271,000 tonnes, a record for a July-September quarter.
- Refined lead grew 14% to 51,000 tonnes, faster than refined zinc's 5% rise.
- First-half refined metal production reached a record 524,000 tonnes, up 6%.
Background
Hindustan Zinc, part of the Vedanta Group, is the world's largest integrated zinc producer, meaning it both mines the ore and refines it into metal. It holds about 74% of India's primary zinc market and is among the world's top 10 silver producers. Its financial year runs from April to March, so the second quarter of FY27 covers July to September 2026.
What happened
Hindustan Zinc's refined metal production rose 7% to a record 264,000 tonnes in the second quarter of FY27, which ended on September 30. That included 212,000 tonnes of refined zinc, up 5%, and 51,000 tonnes of refined lead, up 14%.
Mined metal, the metal contained in the ore taken out of the ground, rose 5% to 271,000 tonnes. Saleable silver output jumped 20% to 173 tonnes, or about 5.6 million ounces, from 144 tonnes a year earlier.
Why output rose
The company credited extra capacity from debottlenecking projects at its Chanderiya and Dariba smelters. Debottlenecking means fixing the slowest step in a plant so the whole line can run faster without building a new one.
A new 160,000-tonne-a-year roaster at Debari also added volume. A roaster is the first stage of zinc refining, where concentrate is heated before the metal is extracted. On the mining side, higher ore production drove the gain. Silver output rose from 149 tonnes in April-June, in line with the company's production plan.
What it means for India
The quarter capped a record first half. Hindustan Zinc mined 539,000 tonnes of metal, a first-half record for the sixth year running, and refined 524,000 tonnes, made up of 426,000 tonnes of zinc and 99,000 tonnes of lead. Silver for the half rose 10% to 321 tonnes.
Because the company supplies about three-quarters of India's primary zinc, its output sets how much Indian galvanisers and steelmakers can buy at home rather than import. Growth is slowing from quarter to quarter, though. Refined output rose just 1% from the 260,000 tonnes made in April-June.
Our read
Outlook: neutral. Higher refined output adds domestic supply in India, but zinc prices are set mainly on the London Metal Exchange. One producer's 7% gain is small next to the global market.
What to watch
- Hindustan Zinc's Q2 FY27 financial results, which will show how much the record volumes lifted profit.
- How quickly the new Debari roaster reaches full use.
For information only, not investment advice.
Zinc price in India
metalscost.com India reference price as of 2026-10-16.
Detailed analysis
Timeline
- 2026-10-03: Hindustan Zinc reports record Q2 FY27 refined metal and silver production.
Mining Production
Mined metal reached a record 271,000 tonnes, up 5% on higher ore production.
Refinery Output
Debottlenecking at Chanderiya and Dariba and the new Debari roaster lifted refined output 7% to 264,000 tonnes.
What could lift prices
- Refined output rose only 1% from the previous quarter, suggesting the easy capacity gains are slowing.
- India relies on one producer for about 74% of its primary zinc, so any outage would tighten local supply.
What could weigh on prices
- A 7% rise in refined output puts more zinc and lead into the Indian market.
- A 20% jump in silver output adds supply at a time when silver prices are already falling.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | High | Hindustan Zinc supplies about 74% of the primary zinc used in the country. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Metal Smelting | Positive | Debottlenecking and a new roaster lifted refined zinc and lead output to records. |
| Galvanizing | Positive | More domestic refined zinc supports supply for Indian galvanisers. |
Who gains, who loses
- Indian galvanisers and steelmakers: They get more refined zinc from a domestic source.
- Zinc exporters selling to India: Higher local output reduces the need for imported refined zinc.
Other ways this could play out
- If the Debari roaster reaches full use soon, refined output could keep setting quarterly records.
- If plant availability dips, the 1% quarter-on-quarter growth could turn flat or negative.
Price risks
- A sharp move in London Metal Exchange zinc prices would outweigh any effect from Indian volumes.
- Weaker steel demand in India would reduce the need for galvanising zinc.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
Related
India