Hindustan Zinc Q2 FY27: Profit up 142%, revenue 77%

Key takeaway from the September-quarter print

Hindustan Zinc reported a sharp improvement in profitability in Q2 FY27, with consolidated net profit rising to ₹6,412 crore on record revenue from operations of ₹15,093 crore. The performance was supported by higher metal production, lower zinc cost of production, and a strong contribution from silver. Results were announced on 19 October 2026 after market hours, with an earnings call scheduled for 4 pm IST.

Some reports described the profit growth as 142% year-on-year, while another cited 149%. Using the reported year-ago profit of ₹2,649 crore, the increase works out to about 142%, reflecting how headline percentages can vary across summaries even when the absolute numbers match.

Profit, revenue and margin: what changed year-on-year

Revenue from operations rose 76.5% year-on-year to ₹15,093 crore, compared with ₹8,549 crore in Q2 FY26. EBITDA more than doubled to around ₹9,248 crore to ₹9,285 crore, depending on the source cited, versus ₹4,445 crore a year earlier. Net profit rose to ₹6,412 crore from ₹2,649 crore.

EBITDA margin also expanded meaningfully. One report put Q2 FY27 margin at 61.3% versus 52% in the year-ago quarter, while another summary highlighted an industry-leading margin of 62%, up 108% year-on-year in EBITDA terms. The common message across disclosures was that pricing, volumes and costs all moved in the company’s favour during the quarter.

Operational drivers: production and silver contribution

Management commentary in the earnings-call summary pointed to higher output across the value chain. Mine metal production in Q2 FY27 rose 5% year-on-year to the highest-ever Q2 level for the company, while refined metal production increased 7% year-on-year.

Silver was a key earnings driver. Saleable silver production rose 20% year-on-year to 173 tonnes, and management indicated that silver contributed about 45% of profitability in the quarter. Alongside higher base-metal production, this mix helped lift operating earnings and margins.

Cost of production: guidance cut and what drove it

A major highlight from the call summary was a downward revision to FY27 zinc cost of production (COP) guidance. The company revised full-year COP guidance to $825 to $850 per tonne from $975 to $1,000 per tonne, after Q2 COP reduced to $703 per tonne.

CFO Amitabh Gupta attributed the lower COP to a positive surprise in by-product realisation, particularly strong sulphuric acid prices. He also said geopolitical issues were adding roughly $50 per tonne in cost escalation. For Q3, the CFO indicated costs are expected to be broadly in the same range.

Hedging details disclosed for Q3 and Q4

The earnings-call summary also provided hedging data that investors track closely in commodity-linked businesses. The CFO said 40 kT of zinc is hedged for Q3 at $3,476 per tonne and 36 kT for Q4 at $3,698 per tonne.

For silver, 8 tonnes were hedged for Q3 at $68 per ounce, as per the same summary. These disclosures matter because they can influence near-term realisations, especially when spot prices are volatile.

Capex and cash position: what the company reported

Hindustan Zinc flagged continued investment alongside strong cash generation. Q2 capex was about ₹1,200 crore on sustaining and ₹700 crore on growth, implying roughly ₹1,900 crore for the quarter. For the full year, the company maintained its guidance of around ₹5,000 crore, with higher spending expected in Q3 and Q4 as expansion work ramps up.

On the balance sheet, the earnings-call highlights cited net cash of ₹11,268 crore and free cash flow of ₹6,389 crore before growth capex. The combination of net cash and rising operating profits was positioned as a cushion while funding expansion plans.

How the results compared with street estimates

A CNBC-TV18 poll was cited in one of the reports, and the quarter beat those estimates on key lines. Net profit of ₹6,412 crore was above the estimate of ₹5,821 crore. Revenue of ₹15,093 crore was higher than the estimate of ₹13,967 crore.

EBITDA of ₹9,248 crore was also ahead of the estimate of ₹8,520 crore, with margin reported at 61.3%, marginally above the 61% estimate. The beat was attributed to higher metal production, lower zinc costs and strong silver output.

Key numbers at a glance

Market and industry context flagged by management

In the earnings-call summary, CEO Amarendu Prakash said 2026 refined zinc demand is forecast at 13.87 million tonnes against supply of 13.69 million tonnes, implying a roughly 180 kT deficit. He added that limited new projects and mine closures are keeping the market tight over the next decade.

This broader demand-supply framing was used to explain why pricing and market structure remain supportive, alongside internal levers like production growth and cost control.

Other disclosures: safety and net-zero target

The company also reported zero fatalities in the quarter, according to the call summary. It reiterated its commitment to net-zero by 2050.

While these points do not directly change quarterly earnings, they are part of ongoing disclosures that institutional investors track alongside operating and financial metrics.

What investors will watch next

The quarter combined record revenue, record EBITDA and a sizeable cut to cost guidance, which together explain the sharp year-on-year jump in profit. The next focus areas are how costs track in Q3, how hedges translate into realisations, and whether the higher capex expected in Q3 and Q4 stays within the ₹5,000 crore full-year guidance.

Any additional detail from management commentary and subsequent filings will be key for understanding the sustainability of the margin expansion seen in Q2 FY27.