Hindustan Zinc Hits 52-Week High on Record Q3 Profit

Introduction

Hindustan Zinc's stock price surged on January 20, 2026, reaching a new 52-week high after the company announced a strong financial performance for the third quarter of fiscal year 2026. The impressive results, driven by higher metal prices and increased production volumes, have reinforced analyst confidence in the company's outlook.

Stock Performance on the Day

In early trading, Hindustan Zinc shares climbed 1.8% to register a 52-week high of ₹673.75 per share on the BSE. By 9:27 AM, the stock was trading at ₹670.7, a 1.44% increase, even as the benchmark BSE Sensex index declined by 0.28%. This buying activity was a direct response to the company's Q3 earnings report, which was released during market hours on the preceding day.

Stellar Q3 Financial Highlights

The company's performance in the December quarter was exceptional. Net profit saw a significant year-on-year increase of 46%, rising to ₹3,916 crore from ₹2,678 crore in the same quarter of the previous fiscal year. This marks one of the highest profit growths for the company.

Record Revenue Surpasses Milestone

Revenue from operations also set a new record, growing by 27% to ₹10,980 crore. This is the first time the company's quarterly revenue has surpassed the ₹10,000 crore milestone, up from ₹8,614 crore reported in Q3FY25. The growth was supported by a combination of favorable market conditions and operational efficiency.

Furthermore, Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew by a robust 34% to ₹6,087 crore, indicating strong operational profitability and effective cost management.

Key Financial Metrics: Q3 FY26 vs Q3 FY25

Analyst Perspectives and Brokerage Upgrades

The strong quarterly report has led to positive commentary from market analysts and brokerages. Many have revised their price targets for Hindustan Zinc, citing improved earnings visibility and solid fundamentals.

Motilal Oswal Financial Services reiterated its 'Neutral' rating on the stock but increased its target price to ₹720 from ₹670. The brokerage acknowledged the strong Q3 performance and noted that the company's expansion plans align with its long-term goal of doubling capacity. However, they also cautioned that near-term earnings growth might be limited and dependent on the strength of LME prices.

JM Financial Institutional Securities maintained its 'Buy' recommendation and significantly raised its target price to ₹770 from ₹600. The firm highlighted Hindustan Zinc's competitive advantages, including its position on the lower end of the global cost curve, captive mines and power, large scale of operations, and a diversified revenue stream with a growing contribution from silver.

Emkay Global Financial Services pointed out a significant improvement in the company's financial health, noting that its balance sheet has moved into a net cash position of ₹330 crore. Emkay also highlighted the substantial role of silver, which contributes 35-40% of the company's EBITDA. This makes the company's earnings highly sensitive to silver prices, supporting a potential re-rating.

Strategic Position and Future Outlook

Hindustan Zinc's strong performance is not just a result of favorable commodity prices but also of strategic operational management. The company has maintained tight control over its cost of production, which is expected to remain below guidance. Management has also maintained its production and capital expenditure guidance for FY26.

The company's long-term expansion plans are seen as a key driver for future growth, enhancing long-term earnings visibility. The increasing contribution of silver to its revenue mix provides a buffer against fluctuations in zinc and lead prices and positions the company to benefit from the ongoing strength in precious metals.

Conclusion

Hindustan Zinc's record-breaking third-quarter results have firmly placed it in the spotlight, driving its stock to a new 52-week high. The combination of a 46% surge in net profit, record revenues, and strong operational efficiency has been well-received by the market. While the company's near-term performance remains linked to global commodity price trends, positive analyst ratings and a clear long-term expansion strategy provide a solid foundation for sustained growth. Investors will be closely watching LME prices and the company's progress on its capacity expansion goals in the coming quarters.