Hindustan Zinc Q2 profit jumps 142% to record Rs 6,412 crore

Hindustan Zinc, the Vedanta group's zinc and silver producer, reported a record consolidated net profit of Rs 6,412 crore for the July-September 2026 quarter (Q2 FY27), up 142% from Rs 2,649 crore a year earlier. The company's board approved the unaudited results on Monday, 19 October 2026. Revenue from operations rose about 77% to a record Rs 15,093 crore, according to the company's investor presentation, helped by higher metal prices and record mine output.

Hindustan Zinc is India's main zinc producer and a major silver producer, with its mines and smelters in Rajasthan. Its results are a direct read on two things that matter beyond the company: the price of base and precious metals, and the strength of India's mining and metals industry.

The jump in profit came from both sides of the business. Output rose, with record mined metal and a 20% increase in silver, and the cost of producing each tonne of zinc fell sharply. At the same time, the price of what it sells was higher. When volumes rise, costs fall and prices climb together, profit rises much faster than revenue, which is what happened this quarter. The company credited debottlenecking at its Chanderiya and Dariba smelters, meaning removing the narrowest points in the production process, and a new roaster at Debari for the higher refined output.

Silver has become a larger part of the story. With silver prices high this year, the 20% rise in saleable silver output added significantly to earnings. That also leaves the company more exposed when silver prices fall, as they did sharply on some days this month.

For the wider economy, a strong Hindustan Zinc means more royalty and tax revenue for Rajasthan and the Centre, and more room for dividends to its shareholders. Zinc is used mainly to galvanise steel against rust, so domestic supply also matters for construction, infrastructure and automobile manufacturing.

Short-term: The record numbers come with the stock under pressure on a weak day for the market, when the Sensex fell 876 points. Markets are shut on 20 October for Dussehra, so the first full trading reaction will come on 21 October.

Long-term: If metal prices stay firm and the company keeps expanding output, earnings can remain strong; a fall in zinc or silver prices would reduce them, since prices drive much of this quarter's jump.

Who is affected: Shareholders, including the Vedanta group; employees and contractors at its Rajasthan mines and smelters; the Rajasthan government, which receives royalties; and industries that use zinc, such as steel galvanisers.

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