Hindustan Zinc's Q3 FY26: A Quarter of Record Performance and Strategic Growth

Hindustan Zinc Limited, the world's largest integrated zinc producer, has announced a quarter of exceptional performance for Q3 FY26 and the nine months ended December 31, 2025. The company delivered record-breaking financials, underscored by robust operational efficiency and strategic advancements. For the third quarter, Hindustan Zinc reported its highest-ever revenue of INR10,980 crore, marking a significant 27% year-on-year (YoY) and 28% quarter-on-quarter (QoQ) increase. This impressive top-line growth translated into a record EBITDA of INR6,087 crore, up 34% YoY and 36% QoQ, achieving an industry-leading EBITDA margin of 55%. The company's profit after tax (PAT) also soared to an all-time high of INR3,916 crore, reflecting a 46% YoY and 48% QoQ surge. These results highlight Hindustan Zinc's strong market position and disciplined execution capabilities.

The operational performance was equally strong, with the company achieving its highest-ever third-quarter mined metal production since its underground transition, reaching 276 kilotonnes (Kt), a 4% YoY and 7% QoQ increase. Refined metal production also hit a record 270 Kt, up 4% YoY and 9% QoQ. Notably, the company recorded its 5-year lowest quarterly zinc cost of production, excluding royalty, at $940 per tonne, demonstrating a 10% YoY and 5% QoQ improvement. This cost efficiency was driven by higher domestic coal usage, softened coal prices, increased production, and higher by-product realizations. The precious metal portfolio, particularly silver, contributed significantly, accounting for 44% of the profits, positioning Hindustan Zinc uniquely to capitalize on the silver market's rally.

Financial Highlights: A Snapshot of Success

Hindustan Zinc's financial results for Q3 FY26 and 9M FY26 showcase consistent growth and profitability across key metrics. The company's ability to deliver record revenue and profits while maintaining cost leadership is a testament to its robust operational model and strategic initiatives.

For the nine months ended December 31, 2025 (9M FY26), Hindustan Zinc reported a revenue of INR27,300 crore, up 9% YoY, and an EBITDA of INR14,415 crore, up 14% YoY, with an EBITDA margin of 53%. The 9M PAT stood at INR8,799 crore, a 20% YoY increase. The company also achieved a net cash position of INR329 crore as of December 31, 2025, a significant improvement from a net debt position of INR2,547 crore at the end of September 2025. This strong liquidity position, coupled with an investment-grade credit rating of AAA from CRISIL, reinforces the company's financial resilience.

Strategic Initiatives and Future Growth Drivers

Hindustan Zinc is actively pursuing several strategic initiatives to drive future growth and enhance its sustainability footprint. The successful completion of debottlenecking projects at the Chanderiya and Dariba smelters has increased refined zinc capacity by 21 Ktpa. The company is also investing in a Hot Acid Leaching Plant at Dariba, expected by Q4 FY26, to recover silver and lead from smelting waste, aligning with circular economy principles. Furthermore, a 510 Ktpa Fertilizer Plant at Chanderiya is slated for commissioning by 1QFY27, aiming to support domestic agricultural needs and optimize sulphuric acid utilization.

Looking ahead, Hindustan Zinc has ambitious 2x growth projects underway, including a 250 Ktpa integrated metal capacity expansion at Debari and a 10 Mtpa Zinc Tailings Reprocessing Plant at Rampura Agucha. These projects, with significant capital investments of c.₹12,000 crore and ₹3,823 crore respectively, are targeted for completion by 2QFY29 and 4QFY28. The company is also diversifying into critical minerals like Tungsten, Potash, and Rare Earth Elements (REEs), securing blocks in Andhra Pradesh, Rajasthan, and Uttar Pradesh, positioning itself as a key player in India's energy transition.

Sustainability Leadership and Market Outlook

Hindustan Zinc's commitment to sustainability is evident in its consistent No.1 ranking in the S&P Global Corporate Sustainability Assessment. The company flagged off 10 EV bulker trucks at its Debari smelter, with plans to scale to 40, reducing its carbon footprint. It has also launched EcoZen, Asia's first low-carbon 'green' zinc brand, and is committed to achieving Net Zero emissions by 2050. The company's RE power share is expected to increase significantly, reaching 70% after the next fiscal year, leading to annual cost savings of INR250-300 crore.

In terms of market outlook, India's economic growth remains strong, with manufacturing PMI firmly above 56. The domestic zinc demand is expected to strengthen, driven by growing steel production, which is projected to reach 300 Mtpa by 2030. While global commodity markets remain volatile, management believes underlying fundamentals are constructive. Zinc prices are expected to range between $3,000 to$3,200 per ton in calendar year '26. The inclusion of silver in the U.S. critical minerals list and strong festive demand from India are expected to keep silver prices buoyant.

Conclusion: Sustained Growth and Value Creation

Hindustan Zinc's Q3 FY26 performance demonstrates its unwavering commitment to operational excellence, financial discipline, and sustainable growth. The company's strategic investments in capacity expansion, critical minerals, and renewable energy, coupled with its strong balance sheet and cost leadership, position it well to capitalize on emerging opportunities in the metals and mining sector. Hindustan Zinc continues to deliver superior shareholder returns and remains a pivotal player in India's journey towards a sustainable and self-reliant future.