Hindustan Zinc Q3 Results: Profit Soars 47% to ₹3,879 Cr

Introduction

Hindustan Zinc Ltd, a subsidiary of Vedanta, announced a robust financial performance for the third quarter of fiscal year 2026, significantly surpassing market expectations. The company reported record-breaking quarterly revenue and profit, driven by a combination of higher production volumes, firm commodity prices, and disciplined cost management. Following the announcement, the company's shares extended gains, reflecting strong investor confidence.

Stellar Financial Performance

The Vedanta group company posted a standalone net profit of ₹3,879 crore for the quarter ending December 2025, marking a substantial 46.5% increase from the ₹2,647 crore reported in the same period last year. This figure comfortably exceeded the CNBC-TV18 poll estimate of ₹3,493 crore. Revenue from operations also saw a significant jump, rising 27.5% year-on-year to ₹10,922 crore from ₹8,556 crore. This performance was ahead of the Street's expectation of ₹10,219 crore.

Robust Operating Metrics

The company's operating performance was equally impressive. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by 34.7% year-on-year to ₹6,055 crore, beating the analyst consensus of ₹5,614 crore. The EBITDA margin expanded by 300 basis points, moving from 52% in the previous year to 55% in Q3 FY26. This improvement was attributed to lower production costs and enhanced operating leverage.

Key Financial Highlights: Q3 FY26 vs Q3 FY25

Operational Excellence and Record Production

Operationally, Hindustan Zinc achieved several milestones. The quarter saw its highest-ever third-quarter mined metal production at 276 kilo tonnes and refined metal production at 270 kilo tonnes. This output was supported by higher ore production and improved plant availability. Silver production also increased by 10% sequentially, contributing significantly to the quarter's profits, accounting for 44% of the total.

Cost Management as a Key Differentiator

A critical factor in the strong earnings was a sharp reduction in costs. The zinc cost of production, excluding royalty, declined by 10% year-on-year to a five-year low of $140 per tonne. The company stated that this reduction was achieved through lower power costs and higher realisations from by-products, underscoring its focus on operational efficiency.

Market Reaction and Stock Performance

The strong financial report was well-received by the market. Hindustan Zinc's shares surged over 4% on the National Stock Exchange, trading at approximately ₹664 in afternoon trade following the announcement. The stock has demonstrated strong performance over the past year, delivering returns of over 42%, which significantly outperforms the NSE Nifty 50's 10% rise during the same period. It is important to note that the stock has a relatively low free float in the market, with majority ownership held by promoter Vedanta and public shareholders including the Government of India.

Conclusion

Hindustan Zinc's third-quarter results for FY26 highlight a period of exceptional performance, characterized by record profits, revenue, and production levels. The company's ability to capitalize on firm commodity prices while simultaneously driving down production costs to a multi-year low has solidified its strong market position. This robust operational and financial execution positions the company favorably for the upcoming quarters.