Hindustan Zinc Q2 Profit Jumps 142% to Record ₹6,412 Crore

Hindustan Zinc Q2 profit jumped 142% year-on-year to a record ₹6,412 crore for the quarter ended September, the Vedanta group company said on October 19, citing firmer metal prices and record mined output.

Revenue from operations rose 77% to ₹15,093 crore from ₹8,549 crore a year earlier, the highest the company has ever reported for a quarter. It had posted a net profit of ₹2,649 crore in the same period last year.

Hindustan Zinc Q2 profit driven by record EBITDA

EBITDA climbed 108% to ₹9,285 crore, the highest for any quarter. The operating margin improved to around 62% from about 52% last year, according to the company’s results announcement.

The company credited better metal prices, higher volumes, improved by-product realisations, a favourable dollar and a lower cost of production. Its zinc cost of production, excluding royalty, fell 29% to $703 a tonne from $994 a year earlier.

Higher mined grades, more renewable power and increased metal output drove most of that saving. Lower use of domestic coal and higher input prices trimmed part of the benefit.

Silver production rises 20%

Mined metal output hit an all-time quarterly high of 271 kilotonnes, up 5% from a year ago. Refined metal production rose 7% to 264 kilotonnes, the company’s best-ever second quarter.

Silver output increased 20% to 173 tonnes and added meaningfully to profit. Silver is a major by-product of the company’s zinc and lead operations in Rajasthan, and larger volumes are making it an increasingly important source of earnings.

Renewable sources met 27% of the company’s power needs during the quarter. Hindustan Zinc was also issued a letter of intent for the Gundlupet rare earth element and yttrium block in Karnataka, marking its entry into critical minerals.

Hindustan Zinc results for the first half

For the six months ended September 30, net profit rose 143% to ₹11,881 crore. Revenue for the half stood at ₹28,840 crore, up 77%, while EBITDA of ₹17,359 crore was more than double the previous year’s figure.

Free cash flow before growth capital expenditure was ₹11,642 crore for the half-year. Gross investments and cash stood at ₹17,439 crore at the end of September, against outstanding borrowings of ₹6,171 crore.

The company contributed ₹13,027 crore to the exchequer in the first half, of which ₹3,724 crore went to Rajasthan through taxes and royalties.

Why it matters and what comes next

Hindustan Zinc is India’s largest integrated zinc producer, and Vedanta holds a majority stake in it. The record Hindustan Zinc Q2 profit adds to the cash the business can distribute to shareholders or invest back into its operations.

The company was state-owned until 2002, when the government sold a part of its stake to Vedanta. The Centre still holds a minority stake, so strong profits also lift its dividend income.

Zinc demand in India moves closely with steel, since most zinc is used for galvanising. Steel consumption grew 7.5% year-on-year between April and September 2026, according to industry data cited in reports on the results.

Chief executive Amarendu Prakash said the company would keep growing in a measured way, use AI-led innovation and develop its critical minerals business. Chief financial officer Amit Gupta highlighted the company’s financial discipline.

Investors will watch how metal prices move in the second half and whether the company can hold on to its lower cost base. User industries are also contending with higher costs, with wholesale inflation rising on fuel and metal prices. The company did not provide any guidance in its results announcement.

Progress on the Karnataka rare earth block will be another marker. The government has been pushing to raise domestic supply of minerals used in electric vehicles, electronics and defence, and exploring such blocks usually takes several years. Full details are available on the Hindustan Zinc website, and more coverage is on our business news page.