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Hindustan Zinc Limited delivered a record operational performance in Q2FY27

ICICIdirect Research 21 Oct 2026 DISCLAIMER

News: Hindustan Zinc Limited delivered a record operational performance in Q2FY27, reporting its strongest EBITDA at ₹9,285 crore (+108% YoY, +15% QoQ) with a ~62% margin, while PAT rose 142% YoY to ₹6,412 crore on revenue of ₹15,093 crore (+77% YoY). Drivers for record Q2 were high mined metal production (+5% YoY), higher refined volumes (+7% YoY) and a lower cost of production ($703/tonne).

View: The results demonstrate exceptional operational efficiency coupled with strong commodity tailwinds. A 29% YoY drop in Cost of Production to $703/tonne was led potentially by higher mined grades, higher sulfuric acid (by-product) prices and expanding renewable energy share that will allow the company to defend margins against pressurized cycles. Crucially, soaring silver realizations served as a massive earnings multiplier, delivering high-margin volume growth beyond core zinc operations. Combined with ongoing expansions across production capacities in both Zinc and Silver, the company is poised for robust operational performance in upcoming quarters and therefore, our view remains positive for the company. Key monitorable remain capacity commissioning, metal prices and USD/INR exchange rate.

Impact: Positive

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