Hindustan Zinc Limited, which describes itself as the world's largest integrated zinc producer, reported record second-quarter production and its highest-ever financial performance for the quarter and half year ended 30 September 2026. The results were disclosed in an earnings presentation filed on 19 October 2026 with BSE Limited and the National Stock Exchange of India Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Zinc was the main driver of the results, supported by higher LME prices and increased output.
The average zinc LME price was $3,825 per tonne in 2QFY27, up 35% from $2,825 a year earlier and up 10% from $3,466 in the previous quarter. The first-half average was $3,651 per tonne, compared with $2,736 in the same period a year earlier. The average lead LME price was $1,857 per tonne in the quarter, down 6% year on year, according to the company.
Mined metal production reached 271 kilotonnes (KT) in the second quarter, up 5% year on year, while refined metal production rose 7% to 264 KT. Refined zinc output was 212 KT, up 5%, and refined lead output was 51 KT, up 14%. In the first half, mined metal production totalled 539 KT (up 3%) and refined metal production 524 KT (up 6%).
The company attributed the record second-quarter mined output to higher ore production, and the best-ever second-quarter refined output mainly to additional capacity unlocked through smelter debottlenecking. Zinc cost of production (COP) excluding royalty was $703 per tonne in the second quarter, down 29% year on year from $994 and down 17% from $851 in the first quarter. Including royalty, zinc COP was $1,228 per tonne, 11% lower than a year earlier.
The company linked the lower costs to better mined grades, higher metal production and higher by-product realisations. First-half COP excluding royalty was $776 per tonne, compared with $1,002 a year earlier. Silver remained a significant secondary contributor.
Saleable silver production was 173 tonnes (5.6 million ounces) in the second quarter, up 20% year on year. The average LBMA silver price was $62.6 per ounce, up 59% from $39.4 a year earlier. The company stated that silver contributed around 45% of overall profitability in the first half of FY27, with base metals accounting for 55%.
Financially, second-quarter revenue from operations was Rs 15,093 crore, up 77% year on year, while EBITDA rose 108% to Rs 9,285 crore, with an EBITDA margin of 62% compared with 52% a year earlier. Net profit was Rs 6,412 crore, up 142%, and earnings per share were Rs 15.18. For the first half, revenue from operations was Rs 28,840 crore, EBITDA Rs 17,359 crore and net profit Rs 11,881 crore, up 143% year on year, with earnings per share of Rs 28.12.
The company attributed the quarterly EBITDA growth to higher metal production, higher metal prices, lower cost of production and a stronger dollar. The company also published approximate sensitivities of annual EBITDA to key variables. According to these estimates, a $100 per tonne change in the zinc price would affect EBITDA by about Rs 725-750 crore, and a $100 per tonne change in the lead price by about Rs 150-175 crore.
A $1 per troy ounce change in silver would affect EBITDA by about Rs 200-225 crore, a $25 per tonne change in zinc COP by about Rs 225-250 crore, and a Re 1 change in the INR/USD exchange rate by about Rs 325-350 crore. The company notes that these impact figures are approximations. As of 30 September 2026, gross investments and cash stood at Rs 17,439 crore and total borrowings outstanding were Rs 6,171 crore.
The presentation highlights free cash flow from operations of Rs 6,389 crore, stated before growth capital expenditure. The company also reported a contribution to the national exchequer of Rs 13,027 crore in 1HFY27, including Rs 3,724 crore to the State of Rajasthan (including mining royalties). These tax and payment figures are company-reported and unaudited.
In its presentation, the company outlines its view of the zinc market. It states that tight inventories and supply disruptions are driving a global zinc market deficit, that zinc demand is expected to grow at a 1.4% CAGR over the next decade, and that a structural supply deficit is expected after 2030 due to limited project pipelines, mine closures and declining exploration. The company also notes that average zinc reserve grades have fallen from 6.9% in the 1990s to 2.8% in the current decade.
Price outlook data is attributed in the presentation to Wood Mackenzie, which the company cites as indicating that zinc prices are set to remain resilient. On silver, the company cites the World Silver Survey 2026, which it says points to a sixth consecutive year of market deficit in 2026. According to the presentation, the industrial share of silver demand rose from 46% in 2022 to 58% in 2025, and photovoltaics accounted for around 17% of silver demand.
The company also states that lead-zinc, copper and gold mines contribute about 70% of global silver production. The presentation also includes macroeconomic indicators cited by the company, which are not company-reported figures. It refers to IMF data for GDP and CEIC data for manufacturing PMI, noting that global manufacturing expanded with limited war impact and that India is the fastest-growing economy in the world.
It also states that government capital expenditure has risen 2.6 times over six years, with effective FY27 capex budgeted at a record of around 4.4% of GDP. Among project updates, the company presents a 250 KTPA integrated refined zinc capacity expansion, where engineering and procurement milestones are largely achieved, and which would lift refined metal capacity from 1.1 million tonnes per annum (MTPA) to 1.4 MTPA, with a total approved investment of about Rs 12,000 crore and target completion in 2QFY29. It also reports progress on India's first zinc tailings reprocessing plant, with 10 MTPA feed capacity, total approved investment of Rs 3,823 crore and target completion in 4QFY28.
The company states that these projects have been approved by its Board. Sources: Hindustan Zinc Limited, Earnings Presentation 2QFY27 and Regulation 30 disclosure (letter HZL/2026-27/SECY/98, dated 19 October 2026), filed with BSE Limited and the National Stock Exchange of India Limited. Macroeconomic and market data are as cited by the company, including IMF, CEIC, World Silver Survey 2026 and Wood Mackenzie.
Source: bseindia.com