Hindustan Zinc Q2: Rs 6,412 crore profit, the gate is met

Hindustan Zinc reported Q2 FY27 after market hours on 19 October. Net profit was Rs 6,412 crore, up 142 percent from Rs 2,649 crore a year earlier. Revenue was a record Rs 15,093 crore, up 77 percent, and EBITDA was Rs 9,285 crore, a 62 percent margin. My 12 October post set three conditions for fresh money: Q2 profit at or above Rs 5,469 crore, Q2 silver output at or above 173 tonnes, and a confirmed result date. All three are met. Silver output was 173 tonnes, up 20 percent. The company also cut its FY27 zinc cost guidance to $825 to $850 per tonne, from $975 to $1,000, according to a call summary. Zinc cost excluding royalty was $703 per tonne in Q2, against $994 a year earlier. I found no company filing for the new range, so it rests on one source. Hindustan Zinc [][***** closed at Rs 489.27 on StockGro’s 3:59 PM IST print on 26 October, up 0.1 percent from Rs 488.99. That is 9 percent below the Rs 538.40 close on 19 October, the results day, and 7.9 percent above my Rs 453.50 exit. My view: constructive, with a small first tranche only, at or below Rs 490. The second tranche waits for the company to confirm the cost guidance. The price fell after the print, and the cost cut is single-sourced, so I am not sizing up yet. My exit is a close below Rs 453.50, the NSE 52-week low from Groww and INDmoney. StockGro shows Rs 448.93, a conflict I have not resolved. I have kept Rs 453.50 for continuity with my 12 October post. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.