Hindustan Zinc Shines Bright in Q2 FY26 with Record Performance and Strategic Growth

Hindustan Zinc Limited has reported an exceptional second quarter for Fiscal Year 2026, showcasing robust financial and operational performance. The company achieved its highest-ever second-quarter revenue from operations, EBITDA, and profit after tax, underscoring its strong market position and efficient operations. This impressive performance comes amidst a global economic backdrop characterized by softness and elevated uncertainty, highlighting the company's resilience and strategic acumen.

For Q2 FY26, Hindustan Zinc's revenue from operations reached INR 8,549 crore, marking a 10% sequential increase. The EBITDA soared to INR 4,467 crore, up 16% QoQ, with an industry-leading margin of 52%. Profit after tax stood at INR 2,649 crore, reflecting a 19% sequential growth and a 14% year-on-year increase. These figures were primarily driven by higher commodity prices, a stronger US dollar, and enhanced by-product realization, partially offset by slightly lower production volumes.

Operational Excellence and Cost Leadership

Operational highlights for the quarter were equally impressive. The company recorded its best-ever second-quarter mined metal production of 258 Kt, a 1% increase year-on-year. Notably, the zinc cost of production hit a five-year low of $994 per tonne, improving by 7% year-on-year and 2% quarter-on-quarter. This cost efficiency was attributed to higher by-product realization, softened input commodity prices, and increased renewable energy consumption. Silver emerged as a significant profit driver, contributing approximately 40% to the overall profit, positioning Hindustan Zinc uniquely to capitalize on the rising silver market.

In terms of production, refined zinc stood at 202 Kt, up 2% year-on-year, while refined lead was 45 Kt. Refined saleable silver production was 144 tonnes. For the first half of FY26, the company achieved its highest-ever 1H mined metal production, up 1% year-on-year, driven by better mined metal grades and improved recoveries. The full-year cost guidance has been revised down to around $1,000 per ton, ahead of the earlier FY27 target, reflecting sustained operational improvements.

Strategic Initiatives and ESG Leadership

Hindustan Zinc is actively pursuing several growth projects to enhance its capacities and sustainability footprint. The company commissioned a 160 Ktpa Roaster at Debari and completed debottlenecking at the Dariba Smelting Complex in Q2 FY26. Debottlenecking at Chanderiya is expected by 3QFY26, and a Hot Acid Leaching Plant is slated for completion by 4QFY26. The board also approved India's first Zinc Tailing Reprocessing Plant of 10 Mtpa at Rampura Agucha, with an investment of INR 3,800 crore, expected by 4QFY28. Additionally, a 250 Ktpa Integrated Metal Capacity Expansion project, costing INR 12,000 crore, is underway, targeting completion by 2QFY29.

On the environmental, social, and governance (ESG) front, Hindustan Zinc achieved a significant milestone by becoming the first Indian company to secure membership in the International Council on Mining and Metals (ICMM). This inclusion reinforces its commitment to sustainable development performance. The company also signed two MOUs with GreenLine Mobility Solutions Limited to deploy 100 EV trucks and expand its LNG truck fleet, advancing its decarbonization journey. Fatality-free operations were maintained during the year, reflecting a strong safety culture.

Outlook and Shareholder Value Creation

The domestic market remains a bright spot for Hindustan Zinc, with India's GDP growth projected between 6.5% to 6.8% for FY26. Strengthening domestic zinc demand, driven by consistently growing steel production, is expected to reach 300 Mtpa by 2030. The company's unique leadership positioning, including its 77% domestic primary zinc market share and consistent AAA rating by CRISIL, positions it well to capitalize on this growth momentum.

In a testament to its shareholder value creation, Hindustan Zinc was included in the Nifty 100 and Nifty Next 50 indices effective September 30, 2025. The company delivered superior total shareholder returns of 7% in Q2, compared to Nifty 100's (3)%. Management reiterated its commitment to audacious Sustainability Goals 2030, focusing on GHG emissions reduction, water stewardship, and circular economy. With a robust balance sheet and higher IRR growth projects, Hindustan Zinc is poised for sustained growth and strong shareholder returns across the commodity cycle.