Hindustan Zinc showed a rise in the second quarter of FY26 with a solid financial showing, reporting a 14% jump in net profit to ₹2,649 crore compared to ₹2,327 crore a year earlier. While revenue growth was more modest, ticking up by 3.5-4% to between ₹8,282 crore and ₹8,549 crore, it signals steady business momentum amid ongoing market challenges.
The company’s focus on controlling costs paid off, keeping expenses around ₹5,245 crore and lifting profit margins to a healthy 31%, up from 29% last year. Operational efficiency clearly took centre stage, supporting sustained earnings growth.
Production hit a record 258,000 tonnes of mined metal in the quarter, a slight 1% rise year-on-year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 7% to ₹4,467 crore, with the EBITDA margin steady at an impressive 52%, underlining strong operational discipline.
Silver was a shining star this quarter, contributing nearly 40% of total profits and reinforcing its role as a key earnings pillar. Meanwhile, zinc production costs fell to a five-year low of USD 994 per tonne, down 7%, further cushioning margins and creating a competitive edge.
Management credits this success to ongoing investments in technology, operational upgrades, and a growing emphasis on sustainability practices. Looking forward, the company is exploring exciting new avenues such as waste-to-value projects, enhanced circular resource use, and the emerging sector of energy-transition metals.
Despite the upbeat earnings, the stock experienced a mild dip post-results, a light pause amid its generally strong trend, buoyed in part by rising silver prices lately.
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