Vedanta Group company Hindustan Zinc Ltd has released its Q2 FY26 business update, reporting a mixed operational performance across key segments, though supported by steady financial results.
Operational Highlights
- Mined Metal Production: 258 kilo tonnes (kt), up 1% year-on-year (YoY) but down 3% quarter-on-quarter (QoQ).
- Saleable Metal Output: 246 kt, showing a 6% YoY decline and a 1% QoQ drop.
- Refined Zinc Production: 202 kt, up 2% YoY, remaining flat sequentially.
- Refined Lead Output: 45 kt, down 29% YoY and 7% QoQ, marking the steepest decline among segments.
The company cited operational normalization and maintenance cycles as factors influencing quarter-on-quarter variation.
Financial Performance
In Q1 FY26, Hindustan Zinc reported a consolidated net profit of ₹2,234 crore, slightly above analyst expectations (CNBC-TV18 poll estimate: ₹2,156 crore). However, profit declined 4.7% YoY from ₹2,345 crore in Q1 FY25.
Revenue stood at ₹7,771 crore, down 4.4% YoY from ₹8,130 crore, and below Street estimates of ₹7,850 crore.
Operating profit (EBITDA) came in at ₹3,859 crore, marginally above estimates, but 2.2% lower YoY than ₹3,946 crore.
Strategic Investment in Renewables
Alongside its quarterly update, Hindustan Zinc announced a ₹327 crore investment in Serentica Renewables India Pvt. Ltd., acquiring a minimum 26% equity stake. The collaboration aims to develop captive renewable power projects across India, aligning with the company’s long-term sustainability goals. The phased commissioning of these projects is expected by June 2027.
Summary
- Mined metal output: +1% YoY; refined lead: -29% YoY.
- Revenue: ₹7,771 crore (↓4.4% YoY); Net profit: ₹2,234 crore (↓4.7% YoY).
- EBITDA: ₹3,859 crore, slightly above expectations.
- ₹327 crore investment in Serentica Renewables for renewable power development.
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