Hindustan Zinc Q3 Results: Profit Soars 46% to Record High

Introduction to a Record-Breaking Quarter

Hindustan Zinc Limited (HZL), a subsidiary of Vedanta, announced a landmark performance for the third quarter of the financial year 2025-26, ending December 31, 2025. The company achieved its highest-ever quarterly revenue and net profit, driven by robust operational efficiency, increased production, and favorable commodity prices. The results, released on January 19, 2026, underscore the company's strong market position and operational excellence, leading to a positive reaction from investors.

Unpacking the Financial Performance

The financial figures for Q3 FY26 set new benchmarks for Hindustan Zinc. The company's consolidated net profit witnessed a significant jump of 46% year-on-year (YoY), reaching ₹3,916 crore compared to ₹2,678 crore in the same period last year. On a sequential basis, the profit after tax (PAT) grew by an impressive 48%. This growth was supported by the highest-ever quarterly revenue from operations, which stood at ₹10,980 crore. This figure represents a 27% increase YoY from ₹8,614 crore and a 28% rise quarter-on-quarter (QoQ).

EBITDA and Margin Expansion

A key indicator of operational profitability, the Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA), also reached a record level of ₹6,087 crore. This marks a 34% increase YoY and a 36% increase QoQ. The company reported an industry-leading EBITDA margin of 55%, which expanded by approximately 270 basis points YoY and 320 basis points QoQ. This margin improvement was attributed to higher production volumes, strong zinc and silver prices, a favorable exchange rate, and a significant reduction in production costs.

Key Financial Highlights for Q3 FY26

Operational Excellence Drives Growth

The stellar financial results were built on a foundation of strong operational performance. HZL reported its highest-ever mined metal production for a third quarter, reaching 276 kilotonnes (Kt), a 4% increase YoY and a 7% increase QoQ. This was a result of higher ore production and operational efficiencies. Furthermore, the company achieved its lowest cost of production in five years, at $140 per tonne, which was 10% lower YoY and 5% lower QoQ. This cost efficiency played a crucial role in boosting profitability.

The Shining Role of Silver

The precious metals portfolio, particularly silver, made a substantial contribution to the company's bottom line. Silver production for the quarter stood at 158 metric tonnes (MT), marking a 10% increase QoQ. According to Chief Financial Officer Sandeep Modi, the precious metals segment contributed 44% to the company's profits during the quarter, positioning HZL to capitalize on the strong demand and pricing for silver.

Strategic Initiatives and Balance Sheet Strength

Hindustan Zinc continued to advance its strategic projects. The company completed the debottlenecking at its Chanderiya Smelter, which increased refined zinc capacity by 21 Ktpa. Additionally, HZL was declared the successful bidder for a Tungsten Block in Andhra Pradesh, diversifying its mineral portfolio. The company's balance sheet remains robust. As of December 31, 2025, HZL had gross investments and cash equivalents of ₹9,342 crore against total borrowings of ₹9,013 crore. This resulted in a net cash position of ₹329 crore, a significant improvement from a net debt position of ₹2,547 crore at the end of the previous quarter.

Market Reaction and Shareholder Value

The market responded positively to the outstanding results. On January 19, 2026, shares of Hindustan Zinc closed 3.74% higher at ₹661.2 per share on the BSE. The company's performance has delivered superior shareholder wealth creation, outperforming both the Nifty 100 and Nifty Metal indices. The consistent AAA credit rating from CRISIL further demonstrates the strength and stability of its financial position.

Conclusion

Hindustan Zinc's performance in the third quarter of FY26 was exceptional, with the company breaking records in revenue, profit, and EBITDA. The results were a direct outcome of higher production volumes, disciplined cost management, and favorable market conditions. With a strong balance sheet, ongoing strategic projects, and a significant contribution from its precious metals portfolio, HZL is well-positioned to sustain its growth trajectory and continue delivering value to its shareholders.