Hindustan Zinc Q3 results: Profit surges 46% on silver-led revenue boost

Record revenue, five-year low cost of production and rally in silver prices lift earnings to all-time high

Vedanta-owned Hindustan Zinc Ltd (HZL) posted its highest ever quarterly profit in the third quarter of 2025-26 (Q3FY26), powered by a sharp rise in silver revenue, firmer metal prices, and the company’s most competitive cost structure in five years.

 

Net profit rose 46 per cent year-on-year (Y-o-Y) to ₹3,916 crore while revenue from operations increased 27 per cent to a record ₹10,980 crore, crossing the ₹10,000 crore mark for the first time. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) grew 34 per cent to ₹6,087 crore. HZL’s share closed 3.74 per cent higher at ₹661.20 on BSE on Monday.

 

 

Silver remained the standout contributor, with revenue surging 83 per cent Y-o-Y to ₹2,676 crore, supported by a global price rally and higher production. Silver accounted for 44 per cent of quarterly profitability, its highest ever share. Revenue from zinc, lead, and other metals grew 16 per cent to ₹7,932 crore, taking total segment revenue to ₹10,608 crore, up 28 per cent from a year ago. Silver prices crossed ₹3 lakh per kilogram (kg) on MCX on Monday.

 

HZL is the world’s largest integrated zinc producer, and is among the top five silver producers globally. The company supplies to more than 40 countries, and holds a market share of about 77 per cent of the primary zinc market in India.

 

Speaking to Business Standard, HZL Chief Executive Officer (CEO) Arun Misra said the company is accelerating efforts to expand silver output further as prices remain elevated.

 

“We are doing whatever is possible to increase silver. Next year, 34-35 tonnes will come from the Fumer (plant) alone, and a new ₹200 crore project to extract silver from zinc concentrate will be commissioned by April-May,” he said, adding that this project will be the first of its kind in India.

 

HZL also achieved its lowest zinc cost of production (CoP) in five years, with CoP falling 10 per cent Y-o-Y to $940 per tonne due to lower power costs, greater domestic coal availability, and improved by-product recoveries.

 

“This cost level is structurally sustainable. A range between $900 and $1,000 per tonne is highly achievable for Hindustan Zinc,” Misra said.

 

Operationally, the company delivered its highest ever Q3 mined metal output of 276,000 tonnes, up 4 per cent Y-o-Y, while refined metal production rose to 270,000 tonnes. Misra expects the momentum to strengthen further.

 

“Quarter four should be the best ever, not just the best Q4, but the best quarter in Hindustan Zinc’s history,” he said.

 

HZL ended the quarter in a net cash position of ₹329 crore, supported by strong operating cash flows and lower finance costs. On capital allocation, Misra said priority will remain on growth projects.

 

“More and more cash generation will go into investment in projects,” he noted, adding that dividend decisions rest with the board.

 

Misra said the impact of India’s newly notified labour codes has been recognised as a one-time exceptional item. He added that exploration at HZL’s new tungsten block in Andhra Pradesh will begin in the coming months, marking its formal entry into the critical minerals segment.