Synopsis: Hindustan Zinc Ltd delivers a strong quarter backed by efficiency and favourable trends, while a shifting mix toward higher-value segments and ongoing expansion plans quietly shape its longer-term growth trajectory.
The shares of this large cap company majorly engaged in producing zinc, lead and silver, having zinc-lead mines and smelting complexes spread across Rajasthan jumped over 6 percent after posting robust Q4 FY 26 results with silver outshining.
With the market capitalization of Rs. 2,61,273 Crores, the shares of Hindustan Zinc Ltd reached an intraday high of Rs. 625 per share rising over 6 percent from its previous day closing of Rs. 588 per share and is trading at a P/E of 19.1 whereas industry P/E stands at 55.8
Q4 FY 26 results
Year on Year analysis: Revenue from operations has increased from Rs. 9,041 Crores to Rs. 13,488 Crores, up 49 percent. Operating profit increased from Rs. 4783 Crores to Rs. Rs. 7666 Crores, up 60 percent and net profit has increased from Rs. 2976 Crores to Rs. 4997 Crores, up 68 percent
Quarter on Quarter analysis: Revenue from operations has increased from Rs.10,922 Crores to Rs. 13,488 Crores, up 23.4 percent. Operating profit increased from Rs. 6055 Crores to Rs. Rs. 7666 Crores, up 26.6 percent and net profit has increased from Rs. 3879 Crores to Rs. 4997 Crores, up 28.8 percent
Silver shines, zinc stays steady
Silver clearly emerged as the biggest earnings driver during the quarter. Prices averaged around USD 84 per ounce, rising 164.3 percent year-on-year and 54.1 percent quarter-on-quarter. This strong price environment pushed silver revenue to Rs 40.32 billion, growing 138.9 percent year-on-year and 50.7 percent quarter-on-quarter. Volumes stood at 176 tons, remaining largely flat year-on-year but increasing 11.4 percent quarter-on-quarter, indicating that the sharp earnings jump was primarily driven by realizations rather than volumes.
Zinc continued to provide stability with volumes at 227k tonnes, increasing 6.1 percent year-on-year and 2.7 percent quarter-on-quarter. Prices averaged USD 3,241 per tonne, up 14.2 percent year-on-year and 2.4 percent quarter-on-quarter. More importantly, cost of production declined to around USD 903 per tonne, falling 9.2 percent year-on-year and 3.9 percent quarter-on-quarter, supported by lower power costs, improved ore grades, and better by-product realizations, which helped sustain strong margins.
Overall, the zinc and lead segment generated revenue of Rs 86.40 billion, growing 21.4 percent year-on-year and 8.9 percent quarter-on-quarter, ensuring a steady base. However, it was silver that delivered the sharp earnings acceleration, highlighting its rising influence on overall profitability.
Management Guidelines
Hindustan Zinc Ltd has laid out a steady and practical roadmap for FY27, aiming to scale mined metal production to 1,150 ktpa and refined metal output to 1,100 ktpa, while targeting 680 tons of refined silver. At the same time, it expects zinc cost of production (ex-royalty) to stay controlled in the USD 975–1,000/t range, showing confidence in cost discipline. Alongside growth, the company is also pushing its energy transition, planning to raise renewable energy usage to 30–35 percent in FY27 and significantly to 70 percent by FY28, balancing expansion with sustainability.
Expansion momentum and project pipeline shaping future growth for Hindustan Zinc Ltd
On the project side, the company is steadily moving ahead with multiple initiatives. Work has already begun on the tailings reprocessing plant at Rampura Agucha, while the hot acid leaching plant—key for improving lead and silver recovery—is on track for commissioning in 2QFY27. Alongside this, the fertilizer plant is expected to be ready in early 2QFY27, with the phosphoric acid plant likely to start within the next three months and the DAP plant targeted by end-FY27, indicating a gradual build-up of integrated capabilities.
On capacity expansion, execution remains on schedule with the 250 ktpa smelter already underway, and plans to add another 600–700 ktpa at the same location, with ordering expected soon. Equipment orders for mining are in place, and mill orders should follow within 1–2 months, keeping the expansion pipeline active. The company continues to focus on setting up smelting capacity close to its Rajasthan mines to reduce logistics costs and improve efficiency. At the same time, management remains comfortable about mine lease expiries in 2030, backed by the first right of refusal, which provides confidence for long-term capacity planning.
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