Hindustan Zinc Q2 FY27: Net Profit Jumps 142% to ₹6,412cr!

Hindustan Zinc reported a powerful set of second-quarter results for FY2027, with net profit rising approximately **142% year-on-year to ₹6,412 crore**, compared with ₹2,649 crore in the same quarter last year. Revenue from operations increased approximately **77% to ₹15,093 crore**, while EBITDA more than doubled to a record ₹9,285 crore. Higher metal prices, stronger production and lower zinc production costs supported the improvement. The company also reduced its FY2027 zinc production-cost forecast to **$825–$850 per tonne**, excluding the impact of royalties as specified in its cost guidance, compared with its earlier forecast of $975–$1,000 per tonne. **Point 1: Higher metal prices** Improved prices for zinc and silver helped increase revenue. Zinc sales revenue rose 54% year-on-year to ₹8,224 crore, while silver sales revenue surged 141% to ₹4,111 crore. **Point 2: Lower production costs** Zinc production cost, excluding royalties, declined 29% year-on-year to $703 per tonne during the quarter. Lower costs can support profitability, particularly when selling prices remain favourable. **Point 3: Record production levels** Mined metal production increased 5% year-on-year to 271,000 tonnes, while refined metal production rose 7% to a record 264,000 tonnes. Silver production increased 20% to 173 tonnes. **Point 4: Strong operating profitability** EBITDA reached ₹9,285 crore, more than doubling year-on-year. The combination of stronger realisations, increased output and lower production costs contributed to this performance. **3. What are the potential risks?** Despite the impressive results, investors should not assume that the same growth rate will continue automatically. 1. **Metal-price volatility:** A fall in zinc or silver prices could reduce revenue and profit. 2. **Cost pressures:** Energy, raw materials and other operating expenses can change.