Hindustan Zinc Limited (HZL) – Q2 Operational Update

Executive Overview Hindustan Zinc Limited (a Vedanta Group enterprise) has released its Q2 operational update, reporting sustained volume expansion across its integrated mining and smelting operations. The quarter was highlighted by broad-based volume growth across base metals, headlined by double-digit expansion in refined lead throughput. Q2 Operational Performance Mined Metal Production: Reached 271 kilotonnes (kt), a 5% YoY increase, demonstrating steady underground mine productivity and ore extraction efficiency. Total Saleable Metal: Rose 7% YoY to 264 kt, underpinned by higher availability and operational efficiencies across processing facilities. Refined Zinc: Stood at 212 kt, moving up 5% YoY and reflecting steady asset utilization across primary smelters. Refined Lead: Delivered standout performance, surging 14% YoY to 51 kt due to enhanced operational throughput. Prior Quarter Baseline (Q1 FY27 Financial Highlights) The sustained physical throughput builds upon an exceptionally strong Q1 financial performance that beat Street consensus: Revenue: Surged 77% YoY to ₹13,747 crore (outperforming the CNBC-TV18 poll estimate of ₹12,599 crore). EBITDA & Margins: EBITDA more than doubled YoY to ₹8,050 crore; operating margins expanded to 58.56% (up from 49.70% in Q1 FY26). Net Profit: Jumped 144% YoY to ₹5,469 crore, materially exceeding market expectations of ₹5,059 crore. Market Context & Trading Metrics Price Action: HZL shares experienced near-term consolidation, declining ~2% to an intraday low of ₹547.20, with a 30-day pullback of 5.60% and a ~10% YTD decline. 52-Week Range: The stock currently trades 24.28% below its 52-week peak of ₹733.00, while maintaining a healthy 22.39% cushion above its 52-week floor of ₹453.50.