- Record PAT supported by low zinc costs and higher metal prices
- Operational efficiency underpins near-term earnings stability
Hindustan Zinc Limited reported a 46% jump in year-on-year profit after tax to INR 3,916 crore in Q3 FY26, backed by record production, strong pricing, and sustained cost efficiencies. Revenue climbed to an all-time high of INR 10,980 crore, up 27% y-o-y and 28% q-o-q, driven by higher zinc and silver realisations, increased volumes, and a stronger rupee-dollar exchange rate averaging 89.50.
Zinc prices on the London Metal Exchange averaged $3,165/t during the quarter, while silver prices surged to $54.7/oz on the LBMA, sharply improving by-product realisations. Zinc sales revenue rose 15% q-o-q to INR 6,485 crore, while silver revenues jumped 83% q-o-q to INR 2,676 crore, reflecting both higher output and price momentum.
EBITDA rose 34% y-o-y to INR 6,087 crore, with margins improving to an industry-leading 55%, up around 270 basis points. The margin expansion was supported by higher refined metal output and elevated silver contributions. Refined zinc and lead production increased 9% q-o-q to 270,000 tonnes, marking the company’s best-ever Q3 performance.
Cost of production fell to a five-year low of $940/t, down 10% y-o-y. Lower power costs due to higher domestic coal usage, improved by-product credits, and better operational efficiencies offset higher mine development expenses, directly lifting profitability.
Operationally, mined metal output rose 4% y-o-y to 276,000 tonnes, aided by improved efficiency at the Chanderiya smelter, which added 21,000 tpa of refined zinc capacity. Silver production stood at 158 tonnes, contributing around 44% to quarterly profits, positioning silver as a key earnings buffer amid base metal volatility.
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