Hindustan Zinc reports mixed Q2 performance; net profit surges 35% YoY

Vedanta-owned Hindustan Zinc Ltd released its Q2 FY26 business update, showcasing a mixed operational performance across key segments, while delivering strong financial results.

In terms of production, mined metal output stood at 258 kilo tonnes (kt), marking a 1% year-on-year (YoY) increase, though it dipped 3% quarter-on-quarter (QoQ). Saleable metal production came in at 246 kt, reflecting a 6% YoY decline and a 1% QoQ drop. On the refining front, zinc production rose 2% YoY to 202 kt, remaining flat sequentially. However, refined lead output fell sharply by 29% YoY and 7% QoQ, settling at 45 kt.

Despite these operational variances, Hindustan Zinc posted a robust 35% YoY jump in net profit, reaching ₹2,327 crore for the July–September quarter. This figure exceeded CNBC-TV18’s poll estimate of ₹2,256 crore. The company’s revenue surged 22% YoY to ₹8,252 crore, driven by higher London Metal Exchange (LME) zinc prices and a sequential recovery in silver volumes.

EBITDA for the quarter rose 31% YoY to ₹4,123 crore, with margins expanding by 380 basis points to 50%, aligning with analyst expectations. The margin improvement was attributed to higher silver volumes and reduced zinc production costs, which helped offset weaker lead prices.

At the time, Hindustan Zinc also announced a ₹327 crore investment in Serentica Renewables India Pvt. Ltd. for a minimum 26% equity stake. The partnership aims to develop captive renewable power projects across India, with phased commissioning expected by June 2027.

Shares of Hindustan Zinc settled 2.2% higher at Rs 492.30. The stock has gained almost 11% in 2025 so far, but remains over 14% lower from its 52-week high price of ₹575.40.Read about our editorial guidelines and ethics policy