Hindustan Zinc profit rises as margins expand

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 Hindustan Zinc Limited (

) reported consolidated net profit of ₹6,412 crore in Q2 FY27, up 142% year-on-year and 17.2% sequentially. Revenue from operations rose 76.7% year-on-year to ₹15,093 crore. What happened? EBITDA increased 108% year-on-year to ₹9,285 crore, while the EBITDA margin expanded to 62% from 52% a year earlier. Mined metal production rose 5% to a record 271 kilotonnes, while refined metal production increased 7% to 264 kilotonnes. Silver production grew 20% to 173 tonnes. The cost of producing zinc, excluding royalty, declined 29% to $703 per tonne. Higher metal realisations, increased production, stronger by-product earnings and lower production costs supported the quarter's performance. Why does it matter? Improved production and lower costs strengthened profitability. Silver has also become an important earnings contributor, accounting for around 43% of the combined segment profit from zinc, lead and silver. However, reliance on commodity prices creates earnings volatility. My view The results reflect strong operating performance and cost efficiency. The key question is whether higher production and lower costs can sustain profitability if metal prices become less favourable. What I am watching next I would track mined and refined metal output, production costs, silver contribution, EBITDA margins and commodity-price sensitivity to assess the sustainability of earnings. No Recommendations Source: NDTV Profit Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Hindustan Zinc Limited.