Hindustan Zinc: Net Profit Rises 142%, Stock at 52-Week Low

Hindustan Zinc (NSE : HINDZINC) is the world’s leading integrated zinc producer and among the top 10 global silver producers. It mines and refines zinc, lead and silver at its Rajasthan operations, selling to domestic and global buyers. What happened: In Q2FY27, consolidated revenue rose 76.5% year on year to Rs 15,093 crore and net profit grew 142.1% to Rs 6,412 crore. Silver division revenue grew 140.8% to Rs 4,111 crore, driven by a 103% rise in local silver prices to Rs 2.4 lakh per kg and a 17% volume increase to 173 tonnes. The zinc and lead division revenue grew 59.5% to Rs 10,414 crore as LME zinc prices rose 35% to $3,825 per tonne. Zinc volumes grew 6% to 214,000 tonnes. Why it matters: Silver, though 27% of revenue, contributed 43% of total segment profit in Q2FY27. Return on equity stands at 76.6%, against Hindalco’s 13%. The stock trades at a P/E of 10.7 times, near the lower end of its five-year range of 10.4 to 40.4 times. Despite record profits, the stock fell 2.4% on results day to Rs 524.8. What I am watching: The company hedged 59 tonnes of silver at $60 per troy ounce, which limits the upside from current spot prices of $62.6 per ounce. Silver prices at Rs 2.29 lakh per kg are still 35% higher year on year, but have already corrected from the January 2026 peak of Rs 3.18 lakh. Whether commodity price tailwinds persist into the second half of FY27 is the central question. My stance: Record earnings, a 76.6% ROE and a P/E near the five-year floor are genuine attractions. The risk is that both silver and zinc prices are cyclical. Investors are pricing in mean reversion, which is why the stock sat near its 52-week low even on a record quarter. I do not hold a position in Hindustan Zinc at the time of writing. This is not investment advice.