Hindustan Zinc Q4FY26: Profit up 68%, ₹11 dividend

Stock jumps after results announcement

Hindustan Zinc shares opened the week in demand after the company reported its fourth-quarter FY26 results and full-year numbers. On Monday, April 27, the stock rose 5.04% to an intraday high of ₹618.20 on the NSE. It later trimmed some gains but stayed in the green. At 10:17 AM, the stock traded at ₹617.05, up 4.76% from the previous close of ₹588.50.

What drove the move on Monday

The rally followed a strong set of quarterly numbers and a dividend announcement. The company reported a sharp rise in profit and EBITDA, supported by higher metal prices and improved cost dynamics, as cited in brokerage notes. Analysts also pointed to higher silver realisations, lower cost of production, and a recovery in volumes as key factors referenced in post-results commentary.

Q4FY26 profit rises; full-year profit also higher

For Q4FY26, Hindustan Zinc reported net profit of ₹5,033 crore, up 68% year-on-year and 29% quarter-on-quarter. The company said the performance was in line with record EBITDA. For the full year FY26, net profit came in at ₹13,832 crore, up 34% year-on-year.

Revenue and EBITDA expand in the March quarter

Revenue for Q4FY26 stood at ₹13,544 crore, up 49% year-on-year and 23% quarter-on-quarter. EBITDA for the quarter was ₹7,747 crore, up 61% year-on-year and 27% quarter-on-quarter. The company attributed the EBITDA growth to increased production, higher zinc and silver prices, lower cost of production, lead concentrate sales, and a stronger dollar. For FY26, revenue was ₹40,844 crore (up 20% year-on-year) and EBITDA was ₹22,162 crore (up 27% year-on-year).

Operations: record production and lowest reported COP

In its board outcome disclosures dated April 24, 2026, the company also flagged operational milestones for Q4FY26. Mined metal production reached 315 Kt, described as the best-ever quarterly performance, up 14% QoQ and 2% YoY. Refined metal production was 282 Kt, a record quarterly level, up 5% QoQ. The company reported its lowest quarterly cost of production at $103 per tonne, citing lower power cost due to higher domestic coal usage and softened coal prices.

Dividend: ₹11 per share and record date

Hindustan Zinc’s board declared the first interim dividend for FY27 at ₹11 per equity share, which the company described as 550% on face value of ₹2 per share. The total interim dividend payout was stated at ₹4,648 crore. The record date for the dividend was fixed as Thursday, April 30, 2026.

Brokerages split, but targets imply limited-to-strong upside

Brokerages offered a mixed view after the Q4FY26 performance, even as target prices indicated potential upside from the prevailing market price levels cited in reports. JM Financial retained a Buy rating, referring to better-than-expected Q4 performance driven by higher silver realisations and lower cost of production. Motilal Oswal Financial Services (MOFSL) maintained a Neutral stance, saying the strong quarter was led by favourable metal prices and a recovery in volumes, while also highlighting valuation comfort and capacity constraints.

Valuation points flagged by MOFSL

MOFSL said its target price is premised on 8.5x EV/EBITDA on FY28E and noted that, at CMP, Hindustan Zinc trades at 7.8x FY28E EV/EBITDA. The brokerage added that near-term earnings growth is capped due to limited capacity headroom, and identified LME and silver price inflation as a key catalyst for incremental upside in the near term. It also noted price volatility as a potential risk or reward for earnings visibility.

Key numbers at a glance

Targets and implied upside from broker notes

Why this quarter matters for investors

The Q4FY26 print combined higher profitability with record operational metrics and a fresh interim dividend declaration. For the market, the immediate focus is on how much of the earnings strength was supported by metal prices, volumes, and the cost curve improvements highlighted in the company’s updates and broker commentary. The split brokerage stance shows a common acknowledgement of strong quarter performance, but a different view on how much upside remains after the recent re-rating and with capacity headroom constraints.

Conclusion

Hindustan Zinc’s stock gained around 5% in early trade on April 27 after reporting higher Q4FY26 profit, revenue, and EBITDA, along with an ₹11 per share interim dividend for FY27. The next near-term date on the calendar is the dividend record date on April 30, 2026, while investors track metal price moves and updates on production and capacity.