Hindustan Zinc shares fall 3% post-Q2 results; Motilal Oswal gives 'neutral' rating for Vedanta group stock
Hindustan Zinc reported a 142 percent year-on-year (YoY) growth in its consolidated net profit to Rs 6,412 crore for the second quarter of the ongoing financial year 2026-27. It stood at Rs 2,649 crore in the corresponding quarter of the previous financial year.
Hindustan Zinc shares today dropped around 3 percent after a 4 percent rise in early trade. The decline came even as the Vedanta Group company reported a more than two-fold rise in quarterly profit, helped by higher metal prices, while cutting its annual zinc production cost forecast amid rising output and stronger by-product realisations. The earnings reports of the company were released on Monday (October 19).
The company's consolidated net profit stood at Rs 6,412 crore for the three months ended September 30. It was at Rs 2,649 crore in the year-ago period. Hindustan Zinc Share Price Today Hindustan Zinc shares rose as much as 3.98 percent to hit a day high of Rs 559.85 per share, on the NSE in the early trade on Wednesday. However, the stock pared its day's gains and was trading in the negative territory at Rs 524.15, down 2.65 percent, at around 2.30 pm.
Hindustan Zinc Q2FY27 results details Hindustan Zinc reported a 142 percent year-on-year (YoY) growth in its consolidated net profit to Rs 6,412 crore for the second quarter of the ongoing financial year 2026-27. It stood at Rs 2,649 crore in the corresponding quarter of the previous financial year. Revenue from operations zoomed 77 percent YoY to Rs 15,093 crore during the July-September quarter of FY27, from Rs 8,549 crore reported in the year-ago period.
The strong growth in the metal major's revenue was driven by higher metal prices, increased metal production, higher by-product realisation, and a stronger dollar. Hindustan Zinc's net profit margin climbed to 42 percent in Q2 FY27 from 31 percent a year ago. The Vedanta group company has operations spanning the mining, processing and refining of zinc, lead and silver, as well as wind power generation.
The quarterly results came at a time when the zinc prices surged supply disruptions and expectations of a global market deficit. The company's total expenses grew nearly 31.5 percent YoY to Rs 6,895 crore during the reporting quarter. EBITDA also more than doubled, increasing around 108 percent YoY to Rs 9,285 crore, driven by increased metal production, higher metal prices, lower cost of production, and a stronger dollar.
The EBITDA margin improved to 62 percent during the quarter, up 900 bps YoY, from 52 percent in the year-ago period. As of September 30, 2026, Hindustan Zinc had healthy gross investments and cash of Rs 17,439 crore. Total borrowings outstanding as on September 30, 2026, stood at Rs 6,171 crore. Hindustan Zinc reported record second-quarter mined metal production of 2,71,000 tonnes, up 5 percent year-on-year.
The company's refined metal production in Q2 rose 7 per cent to 2,64,000 tonnes. Silver production rose 20 per cent year-on-year to 173 tonnes, contributing significantly to Hindustan Zinc's profitability. Zinc cost of production (COP), excluding royalty stood at $ 703 per tonne during the quarter, improved by 29 percent YoY 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 commodities prices in line with the ongoing geopolitical crisis globally.
Hindustan Zinc Share Price Target: What brokerage said Brokerage firm Motilal Oswal reiterated a 'Neutral' rating for Hindustan Zinc with a share price target of Rs 600. The brokerage noted that the company reported strong earnings in second quarter, primarily driven by favorable metal pricing, better grades/volume, and higher by-product NSR, which supported lower CoP. Further, it said the company continues to focus on ramping up production, improving operational efficiencies, and maintaining tighter cost control, which should support margin sustenance.
Noting that the recently announced expansion plans align with Hindustan Zinc's long-term objective of doubling its existing capacity and enhancing long-term earnings visibility, the brokerage said the near-term earnings growth, however, is likely to remain constrained by limited capacity headroom, making LME/silver price inflation the key catalysts for incremental earnings upside. Further, the brokerage stated HZ’s entry into critical minerals is expected to diversify its high exposure to a single metal, reducing metal-led volatility in the future.
“We increase our earnings estimates, with revenue and EBITDA revised upward by 6% for FY27 and ~4% for FY28, incorporating silver volume guidance of 680t for FY27 and 700t for FY28. We believe further price volatility could remain a potential risk or reward for earnings," it stated, adding at current market price (CMP), HZ trades at 6.4x FY28E EV/EBITDA, and it believes the current valuation has priced in all the positive factors.
