Earnings Review
Hindustan Zinc Q1 PAT grows over two-fold; beats estimates
This story was originally published at 17:27 IST on 24 July 2026
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--Hindustan Zinc Apr-Jun net profit INR 54.25 bln
--Analysts saw Hind Zinc Apr-Jun net profit at INR 50.44 bln
--Hindustan Zinc Apr-Jun revenue INR 136.87 bln
--Analysts saw Hind Zinc Apr-Jun revenue INR 127.15 bln
--Hind Zinc Apr-Jun net profit INR 54.25 bln vs INR 22.04 bln year ago
--Hind Zinc Apr-Jun revenue INR 136.87 bln vs INR 77.23 bln year ago
--Hind Zinc Q1 consol silver segment revenue INR 38.39 bln vs INR 14.26 bln
--Hind Zinc Apr-Jun zinc, lead, other sales INR 91.46 bln vs INR 61.16 bln
--Hind Zinc Apr-Jun operating margin 52% vs 38% year ago
--Hind Zinc Apr-Jun debt-to-equity ratio 0.31 vs 1.19 year ago
--Hind Zinc to appoint Amarendu Prakash as CEO, whole-time director
--Hind Zinc to appoint Amarendu Prakash as CEO with effect from Aug 1
--Hind Zinc: Board satisfied with corrective measures by co post SEBI warning
--Hind Zinc Apr-Jun EBITDA INR 80.74 bln, up 109% on year
--Hind Zinc Apr-Jun EBITDA margin 59% vs 50% year ago
--Hind Zinc Q1 zinc output cost, ex-royalty, at $851/tn, down 16% on yr
--Hind Zinc Apr-Jun pre-capex free cash flow generation INR 52.53 bln
--Hind Zinc: Q1 mined metal production at 268,000 tonnes, up 1% on year
By Astha Oriel and Gunjan Rajput
NEW DELHI – Hindustan Zinc Ltd. Friday reported a sharp on-year increase in its net profit for the June quarter as the growth in its total expenses was slower than that of revenue from operations and total income. An increase in the company's sales volume for the June quarter drove its revenue from operations. The company beat analysts' estimates for its net profit and revenue from operations.
The company's net profit in the June quarter rose over 146% on year to INR 54.25 billion, beating the analysts' estimates of INR 50.44 billion. The company reported the highest on-year increase in the bottom line in at least four quarters. The company's net profit was INR 22.04 billion in the year-ago quarter.
The company's revenue from operations rose over 77% on year to INR 136.87 billion, beating analysts' estimates of INR 127.15 billion. This was the highest on-year increase in revenue from operations in at least four quarters. The company's revenue from operations was INR 77.23 billion in the year-ago quarter. Sequentially, the company's net profit grew nearly 9%, and revenue increased over 1%.
The total income of the company grew nearly 75% on year to INR 140.02 billion during the quarter under review. The on-year growth of the total income was the highest in four quarters.
The mining major's total expenses rose over 33% on year to INR 67.43 billion. Of this, other expenses which accounted for 49% of the total expenses, grew over 51% on year to INR 33.06 billion. Expenses related to mining royalty grew almost 69% on year to INR 15.36 billion, and power and fuel costs rose nearly 11% on year to INR 6.99 billion.
Expenses related to depreciation and amortisation grew nearly 1% on year to INR 9.2 billion. The company's finance costs declined nearly 45% on year to INR 1.32 billion. The company's consolidated silver segment revenue was INR 38.39 billion as against INR 14.26 billion in the year-ago quarter. The company's consolidated June quarter zinc, lead, and other sales were INR 91.46 billion, as against INR 61.16 billion in the year-ago quarter.
The company's consolidated mined metal production was 268,000 tonnes, up 1% on year. The refined metal production grew 4% on year during the quarter under review to 260,000 tonnes. The company's consolidated refined zinc output grew 6% on year to 213,000 tonnes, and the refined lead production declined 2% on year to 47,000 tonnes. The refined saleable silver production was 149 tonnes. The zinc cost of production excluding royalty dropped 16% on year to $851 per tonne on account of better mined grades, increased metal production, better renewable power consumption, and higher by-product realisations, partly offset by lower domestic coal usage and increased input commodity prices in line with the ongoing geopolitical crisis globally.
The company's consolidated earnings before interest, tax, depreciation, and amortisation grew 109% year-on-year to INR 80.74 billion for the June quarter. This was the highest-ever EBITDA the company has reported. The EBITDA margins also expanded to 59% from 50% a year ago, and operating margins grew 52% compared with 38% in the previous period. The company generated INR 52.53 billion in pre-capex free cash flow while significantly strengthening its balance sheet, as its debt-to-equity ratio improved to 0.31 from 1.19.
The company also appointed Amarendu Prakash as the Chief Executive Officer and Whole-time Director, effective Aug. 1. Meanwhile, the board expressed full satisfaction with the corrective measures taken after the recent Securities and Exchange Board of India observations on related-party transactions, which carried no financial penalties. Management also reiterated that past short-seller allegations against Vedanta Group entities remain entirely baseless, fully compliant with regulations, and without impact on financial results. "During the current quarter, SEBI communicated its observations on related party transactions. These observations pertained to approvals and disclosure aspects and did not result in any financial penalty, restriction, or sanction on the Group. In accordance with SEBI's directions, corrective measures have been taken and presented to the Audit & Risk Management Committee and the Board of Directors," the company said in the exchange filing.
The company detailed its June quarter results during market hours. Friday, Shares of the company ended at INR 531.95 on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
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