Hindustan Zinc Q2 profit hits record Rs 6,412 crore on silver rally and lower costs

Hindustan Zinc digs zinc, lead and silver from mines in India and refines them for car, construction, battery, electronics and solar makers. On October 19, 2026 its board approved unaudited results for the quarter and half year ended September 30, 2026 with an unmodified review . Revenue, EBITDA and net profit were the highest ever for a quarter and half year as higher prices, record second-quarter and first-half output and lower costs lifted margins .

Sales and profit hit records as margins widened

The quarter built on a strong start to the year. Q1 FY27 had already been framed as an all-time high quarter . Q2 FY27 moved higher again on both a year-on-year and sequential basis.

Sources: Revenue, EBITDA and margin – ; profit before tax, net profit and EPS – .

Sources: Revenue, EBITDA and margin – ; profit before tax, net profit and EPS – .

EBITDA here means operating profit before depreciation, finance cost and tax. Net profit means profit after tax, or PAT.

Management said 2Q revenue was up, driven by higher metal prices, increased metal production, higher by-product realisation, and a stronger dollar . It said 2Q EBITDA was up, driven by increased metal production, higher metal prices, lower cost of production, and a stronger dollar .

Below EBITDA, depreciation rose in line with higher production, finance cost fell on lower average borrowings, investment income rose on higher cash, and the tax charge rose with profit .

Silver carries nearly half the profit

Silver sales outpaced zinc and lead year-on-year in Q2 and H1

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All four legs grew year-on-year and sequentially. Others grew fastest year-on-year in Q2, followed by silver; zinc led sequential growth. Silver and others also outpaced zinc and lead year-on-year in H1. On those figures silver was about 27% of Q2 revenue against about 20% a year earlier, and about 28% of H1 revenue against about 19% a year earlier .

Profit now leans on silver prices

Silver continued to contribute about 45% to overall profitability in H1 FY27, shown as precious metal 45% and base metal 55% . That follows about 46% in Q1 FY27 and 44% in Q3 FY26 .

Silver’s larger year-on-year revenue share coincided with stronger silver prices and higher silver volumes. Sequentially, silver revenue rose even as its benchmark price fell; its share of total revenue edged lower . Zinc rose strongly year-on-year while lead was slightly lower, and silver was sharply higher year-on-year though below the very strong Q1 level .

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Management positions the company as Indias only primary silver producer to capture the upcycle, adding that significant value unlock potential exists as the rally impact is yet to be fully reflected .

More metal was made at much lower cost

Mines and smelters hit second-quarter and first-half output records

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Q2 was described as record second-quarter mined metal on higher ore output and best-ever second-quarter refined metal on capacity unlocked through smelter debottlenecking . H1 mined metal was 539 KT against 523 KT a year earlier and refined metal was 524 KT against 496 KT, both best-ever first half .

Q1 had already delivered highest-ever first-quarter mined metal, while refined metal was up 4% year-on-year, helped by better grades, the 160,000 tons per annum roaster at Debari and debottlenecking at Chanderiya and Dariba . Management had reiterated full-year FY27 refined guidance of 11.00 lakh tons after 260 KT in Q1, noting Q2 to Q4 are typically strongest .

Cost per tonne fell sharply on grades and by-products

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Cost here means zinc cost of production. Royalty is the mining tax paid on minerals.

Lower quarterly cost was driven by better mined grades, increased metal production and higher by-product realisations . That extends a run of improvement. Q1 cost of 851 dollars was then the lowest since underground transition . FY26 cost of 959 dollars was a five-year low .

Strong cash supports dividend and expansion

As of September 30 gross investments and cash were Rs 17,439 crore and total borrowings were Rs 6,171 crore . Q2 FY27 free cash flow from operations was Rs 6,389 crore on a pre growth capex basis . In Q1 free cash flow on the same basis was Rs 5,253 crore with a net cash position of Rs 5,572 crore .

On April 24, 2026 the board declared an interim dividend of Rs 11 for each Rs 2 share for FY 2026-27 with record date April 30, 2026 and total payout Rs 4,648 crore . Contribution to the national exchequer was Rs 13,027 crore in H1 including Rs 3,724 crore to Rajasthan including mining royalties on an unaudited basis .

Smelter and tailings plant anchor doubling plan

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Engineering and procurement are largely done at Debari with mine development progressing, while critical equipment is ordered and major construction is underway at the tailings plant .

That sits inside a wider vision of 2.0 MTPA refined metal, 1,500 TPA silver and over 25 years of mine life . Under Indias critical mineral mission the company lists tungsten exploration started in Q4FY26, potash and rare earth composite licences, and a preferred-bidder position for rare earth and yttrium in Karnataka .

The July call added phasing. Mine development had started for Debari and construction for tailings, while the hot acid leaching plant and fertiliser plant were on track for the second quarter, with the full fertiliser plant by Q1 of next financial year pending clearance . Growth capex was around Rs 800 crore in Q1 against full-year growth guidance of around 50 crore to 60 crore dollars .

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Sources

1. 1 Please refer the enclosed file
2. 2 Investor presentation, 2026-10-19
3. 3 Earnings-call transcript, 2026-07-28
4. 4 Investor presentation, Jan 2026
5. 5 Earnings-call transcript, Apr 2026