Hindustan Zinc Q3FY26: Profit up 46%, revenue up 28%

Why Hindustan Zinc is back in focus

Hindustan Zinc has seen sharp swings in its share price in recent sessions, driven by a mix of strong quarterly earnings and fast-moving changes in silver prices. The stock has reacted in different ways to the commodity cycle, at times rising even when silver fell, and at other times dropping steeply during sharp declines in silver futures. Investors have also tracked company-specific factors, including Vedanta’s ongoing offer for sale (OFS), which has added supply to the market.

The latest trigger was the company’s Q3FY26 earnings, where profit rose sharply and management highlighted record production and a multi-year low cost level. Yet the stock’s post-results performance has not been one-way, reflecting how commodity-linked stocks can trade on both fundamentals and near-term market positioning.

What moved the stock: silver volatility and derivatives margins

Hindustan Zinc shares dropped significantly in one instance due to a sharp decline in silver prices and increased margins on MCX futures. In another session, the shares tanked 10% after silver slipped another 6%, following what was described as silver’s largest single-day drop on record on the prior Friday.

At the same time, the stock has also shown counter-intuitive moves. Hindustan Zinc shares rose over 4% even as silver prices posted a significant drop, underscoring that the stock does not always move in lockstep with the spot commodity on a given day.

In a separate observation, the stock fell about 2% over the last two sessions despite silver prices hitting a record of ₹4 lakh. The decline was attributed not to fundamentals but to short-term supply pressure linked to promoter Vedanta’s ongoing OFS, including a base sale and a greenshoe option that added fresh shares into the market.

Q3FY26 earnings: profit up 46% to ₹3,916 crore

Vedanta Group-led Hindustan Zinc reported a 46% jump in consolidated net profit to ₹3,916 crore for Q3FY26. In the same quarter a year earlier, net profit stood at ₹2,678 crore. On a sequential basis, profit rose 47.8% from ₹2,649 crore.

The company attributed the growth to higher production and low cost. Arun Misra, Chief Executive Officer of Hindustan Zinc, said the quarter marked a record performance, with the company achieving its highest-ever third quarter metal production and a five-year lowest quarterly zinc cost of production of $140 per tonne.

The company’s EBITDA for the quarter stood at ₹6,087 crore, up 34% year-on-year and 36% sequentially.

Commodity backdrop: record silver prices and higher zinc

A separate report on the same quarter noted that Hindustan Zinc’s third-quarter profits increased 46.2%, aided by record-high silver prices and higher zinc prices amid “resilient” demand. It also stated that spot silver prices surged 52.6% in the final quarter of 2025, supported by investment flows and supply restrictions, while benchmark zinc prices in London rose 5.3%.

These commodity moves matter because Hindustan Zinc’s earnings are exposed to both zinc and silver. But as recent trading showed, the relationship between commodity prices and the stock can be affected by additional factors such as derivatives positioning, exchange margin changes, and secondary market supply.

Share price points mentioned around the results

On the day of the Q3FY26 results, Hindustan Zinc shares closed at ₹661.2 on the BSE on Monday. Another note said the shares closed 3.6% higher after the results.

Despite the strong quarter, the stock was reported to have dropped about 8% in the past month since January 16, when it announced its third-quarter earnings. In Q1FY26 results coverage, the shares were trading 0.14% down at ₹436.45 at 3:09 pm on the BSE on Friday.

A separate market snapshot showed that as of April 25 at 3:07 PM IST, Hindustan Zinc was trading at ₹445.60, down ₹13.75 or 2.99% for the day, after opening at ₹462.50 and moving between an intraday high of ₹467.90 and a low of ₹439.00. Over the past 52 weeks, the stock touched a high of ₹807.70 and a low of ₹378.15.

Q1FY26: softer profit, but EBITDA margin around 50%

In Q1FY26, Hindustan Zinc reported a consolidated net profit of ₹2,234 crore, down 4.75% from ₹2,345 crore in the same period last year. Compared to Q4 FY25, profit declined 25.61% from ₹3,003 crore.

Revenue from operations was ₹7,771 crore, down 4% year-on-year due to lower volumes and lower zinc and lead prices, partly offset by higher silver prices, a stronger dollar, and higher by-product realisations. EBITDA came in at ₹3,860 crore, down 2% year-on-year, with an industry-leading EBITDA margin of about 50%. The effective tax rate for the quarter was about 25%.

The board declared an interim dividend of ₹10 per share during the quarter.

Q4 FY25: record quarter profit and lower zinc cost

For the March 2025 quarter (Q4 FY25), Hindustan Zinc reported consolidated net profit of ₹3,003 crore, up 47% year-on-year from ₹2,038 crore. Another set of figures for the same quarter said the company recorded its highest-ever fourth-quarter revenue of ₹9,087 crore, up 20% year-on-year, with EBITDA of ₹4,816 crore, up 32%, and a margin of 53%.

The zinc cost of production in Q4 FY25 fell to a 16-quarter low of $194 per metric tonne, driven by better metal grades, improved coal supply, and operational efficiencies.

Key numbers table

Market impact: why prices and supply both mattered

The reported moves show two competing forces influencing Hindustan Zinc’s stock. First is commodity pricing, particularly silver, where sharp drops and the raising of MCX futures margins were cited as immediate triggers for equity declines. Second is market supply, where Vedanta’s OFS was described as adding fresh shares through a base sale and greenshoe option, creating short-term pressure even when silver hit record levels.

In other words, the stock’s reaction has not been purely a read-through of earnings quality or commodity direction on any single day. It has also reflected how quickly positioning can shift when liquidity, margin requirements, and incremental share supply change.

Analysis: what the earnings say versus what the tape shows

On fundamentals, Q3FY26 reflected stronger profitability supported by higher production and lower costs, with management pointing to record quarterly metal output and a five-year low zinc cost of $140 per tonne. EBITDA growth of 34% year-on-year provided additional confirmation of operating leverage during the quarter.

But the trading narrative around the stock suggests that short-term moves can diverge from fundamentals, particularly during periods of extreme volatility in silver prices or when promoter selling adds to floating supply. That gap helps explain why the stock could fall even when silver touched ₹4 lakh, or drop sharply when silver posted unusually large declines.

What to watch next

The upcoming earnings date for Hindustan Zinc was listed as January 19, 2026. Investors will also continue tracking silver and zinc price movements, as well as any developments around promoter stake sale mechanics that can influence near-term supply.

Over the near term, the key confirmed markers are the company’s reported cost trajectory, profitability delivered in Q3FY26, and how market microstructure factors such as derivatives margins and OFS-related supply affect trading around commodity-linked moves.