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Informist, Wednesday, Jul. 22, 2026

 

By Astha Oriel 

 

NEW DELHI – Hindustan Zinc Ltd. is expected to post a sharp on-year rise in its top line and bottom line for the June quarter, led by higher zinc prices, according to brokerages tracking the company.

 

The company's net profit is expected to rise nearly 129% on year to INR 50.44 billion, according to the average of estimates by seven brokerages. The highest net profit estimate is at INR 50.82 billion from Nuvama Wealth Management Ltd. and the lowest estimate INR 50.10 billion from Systematix Shares and Stocks (India) Ltd. 

 

The company's net sales are expected to rise nearly 65% on year to INR 127.15 billion, according to the average of brokerages' estimates. The highest net sales estimate is INR 132.24 billion from J.M. Financial Institutional Securities Pvt. Ltd. and the lowest INR 118.93 billion from 360 ONE Capital Market Pvt. Ltd. Sequentially, the net profit is expected to rise nearly 1%, while the net sales are likely to decline nearly 6%. 

 

If realised, this would  be the fourth consecutive quarter of an on-year rise in net profit and sales, and the rise will be higher than the preceding quarters. 

 

Nuvama Wealth Management expects the company's total sales volumes to be 268,000 tonnes. The brokerage expects refined zinc sales volumes, refined lead and silver to be 201,000 tonnes, 48,000 tonnes and 145 tonnes, respectively.

 

The company's mined metal output for the June quarter was 268,000 tonnes, up 1% year on year. The company's refined metal output grew 4% on year at 260,000 tonnes in the quarter under review.

 

The refined zinc output grew 6% on year to 213,000 tonnes, while the refined lead output declined 2% on year to 47,000 tonnes. The saleable silver production for the June quarter was 149 tonnes, down 0.4% on year. In the year-ago quarter, the company's net mined metal production was 265,000 tonnes and the refined metal sales were 249,000 tonnes.

 

"Strong zinc prices are expected to drive earnings in 1Q (June quarter), offsetting the muted silver prices," Motilal Oswal Financial Services said in an earnings preview note. The brokerage expects zinc prices on the London Metal Exchange to rise 31.2% on year to $3,458 per tonne and lead prices to rise 0.4% on year to $1,953 per tonne in the June quarter. 

 

"Higher zinc and silver prices, lower CoP and reduced hedging losses are expected to offset the impact of lower sequential metal volumes. We expect the benefit of improved sulphuric acid realisations and lower hedge losses to support profitability, despite softer volumes," YES Securities (India) Ltd. said.

 

The company's earnings before interest, tax, depreciation, and amortisation are expected at INR 76.31 billion, according to the average of estimates by six brokerages. Kotak Securities Ltd. has the highest EBITDA estimate at INR 77.21 billion, whereas Systematix Shares and Stocks has the lowest estimate at INR 75.10 billion. 

 

Kotak Securities expects the company's EBITDA margin at 61.9%, whereas YES Securities expects it at 59.6%. Systematix Shares and Stocks expects EBITDA margin at 58%. In the year-ago quarter, the EBITDA margin was at 50%.

 

The company will announce June quarter results Friday. Analysts will watch the management's comments on project updates and the timeline for the gas costs to normalise. On Wednesday, shares of the company closed 0.2% higher at INR 535.40 on the National Stock Exchange. This is over 10% lower than the share price following the March quarter earnings announced on Apr. 24. 

 

Of the eight brokerage reports on the company available with Informist, seven have a 'buy' recommendation with an average target price of INR 707 per share. This is over 32% higher than the current share price. One brokerage has a 'hold' recommendation with a target price of INR 630 per share. 

 

Following are the June quarter earnings estimates for Hindustan Zinc from seven brokerages in descending order of the estimate of net profit in INR billion:

 

BROKERAGES	Net sales	NET PROFIT	EBITDA
Nuvama Wealth Management Ltd	128.84	50.82	76.52
Kotak Securities Ltd	124.81	50.61	77.21
YES Securities (India) Ltd	127.95	50.55	76.27
JM Financial Institutional Securities Pvt Ltd	132.24	50.41	76.27
360 ONE Capital Market Pvt Ltd	118.93	50.40
Motilal Oswal Financial Services Ltd	127.00	50.20	76.50
Systematix Shares and Stocks (India) Ltd	130.30	50.10	75.10
Average	127.15	50.44	76.31

 

End

 

Edited by Himanshi Gupta

 

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