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Hindustan Zinc reported a steady performance in Q1FY27

ICICIdirect Research 27 Jul 2026 DISCLAIMER

News: Hindustan Zinc reported a steady performance in Q1FY27. Total operating income for the quarter stood at ₹13,747 crore (up 77% YoY). Refined zinc production increased to 213 kt (up 6% YoY), while lead production stood at 47 kt (down 2% YoY). Saleable silver production remained flattish YoY at 149 tonnes. Reported consolidated EBITDA came in at ₹8,050 crore, with a corresponding EBITDA margin of ~59%, up 166 bps YoY. Consequently, PAT stood at ₹5,469 crore, up 9% QoQ). 

View: Revenue growth during the quarter was primarily driven by higher zinc prices (up ~7% QoQ & 31% YoY to ~US$3,466/tonne) and increased by-product sales, including sulphuric acid and residue recycling. In addition, the company reported its lowest-ever cost of production at ~US$851/tonne in Q1FY27, supported by higher ore grades and increased renewable power consumption. Going forward, commodity prices are expected to remain volatile. The recent decline in silver prices to below US$60/oz could weigh on profitability in the coming quarters (this is amidst realisation of US$77/oz realised in Q1FY27). Nevertheless, the company has reiterated its FY27 refined metal production guidance of 1.1 MT, with higher volumes expected during H2FY27. Consequently, the anticipated volume ramp-up is expected to positively benefit Vedanta, which owns a 60.7% equity stakes in the company.

Impact: Neutral

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