Udaipur, October 21, 2026: Hindustan Zinc Limited, one of the world’s largest integrated zinc producers, is targeting lower production costs for the current financial year after reporting record quarterly profits and revenue in the second quarter of FY2026–27. The company’s strong performance was supported by higher metal prices, increased production and improved operational efficiency.
The Vedanta Group company has reduced its zinc production cost forecast for FY2026–27 to $825–$850 per tonne, excluding royalty, from its earlier estimate of $975–$1,000 per tonne. The revised outlook reflects lower unit costs and favourable realisations from by-products, although management cautioned that expenses could increase during the second half of the financial year.
Record Revenue and Profit in the September Quarter
Hindustan Zinc reported consolidated revenue from operations of ₹15,093 crore for the September quarter, an increase of approximately 77% compared with ₹8,549 crore in the corresponding period last year.
Net profit rose 142% year-on-year to ₹6,412 crore, compared with ₹2,649 crore a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) more than doubled to a record ₹9,285 crore, reflecting stronger realisations, higher production and improved cost efficiency.
The company also reported record quarterly production volumes. Mined metal output increased 5% year-on-year to 271,000 tonnes, while refined metal production rose 7% to 264,000 tonnes.
Lower Zinc Costs Strengthen Competitiveness
Zinc production costs, excluding royalty, declined 29% year-on-year to $703 per tonne during the September quarter. For the first half of FY2026–27, the cost fell 23% to $776 per tonne.
The reduction was supported by improved mined grades, higher production volumes, increased use of renewable power and stronger realisations from by-products, particularly sulphuric acid. However, elevated energy prices and rising input costs continue to pose challenges for the company.
Hindustan Zinc’s management expects production costs to remain influenced by global energy prices, input inflation and fluctuations in sulphuric acid prices. If by-product prices moderate, some of the current cost advantage could diminish.
Silver Business Adds to Profitability
Silver has emerged as a major contributor to Hindustan Zinc’s earnings. During the September quarter, silver production increased 20% year-on-year to 173 tonnes, while revenue from silver sales surged 141% to ₹4,111 crore.
Revenue from zinc sales rose 54% to ₹8,224 crore, while lead sales revenue increased 35% to ₹1,130 crore. The performance demonstrates the importance of diversified metal production and by-product revenues in strengthening the company’s financial results.
Expansion and Renewable Energy Plans
Hindustan Zinc is continuing its expansion plans to strengthen its long-term production capacity. Its proposed integrated zinc expansion project, designed to add 250,000 tonnes of annual capacity, is progressing through engineering, procurement and mine development activities.
The company is also increasing its use of renewable energy to reduce exposure to conventional power costs and improve operational sustainability. Renewable sources accounted for 27% of its overall power consumption during the September quarter.
Outlook: Cost Efficiency Remains Key
Hindustan Zinc’s record quarterly performance highlights the benefits of higher commodity prices, greater production volumes and disciplined cost management. However, its future earnings will remain sensitive to global zinc and silver prices, energy costs and by-product market conditions.
The company’s ability to sustain lower production costs while expanding capacity will be important for maintaining competitiveness in the global metals market. Its revised FY2026–27 cost guidance signals confidence in operational efficiency, although the company faces potential cost pressures in the coming quarters.