UDAIPUR — Hindustan Zinc Limited (HZL), India’s largest integrated producer of zinc, lead, and silver, has announced a stellar financial performance for the first quarter of FY2027, reporting a 145% year-on-year (YoY) surge in consolidated net profit to ₹5,469 crore. The remarkable growth was supported by strong operational performance, higher metal prices, robust silver revenues, and improved operating efficiencies.
The company also declared an interim dividend of ₹11 per equity share, reaffirming its commitment to delivering value to shareholders while maintaining a strong financial position.
Outstanding Financial Performance
For the quarter ended June 30, 2026, Hindustan Zinc posted significant improvements across all major financial indicators.
| Particulars | Q1 FY2027 | Q1 FY2026 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹13,747 Crore | ₹7,771 Crore | +77% |
| Net Profit | ₹5,469 Crore | ₹2,234 Crore | +145% |
| Operating Margin | 52% | 38% | +1,400 Basis Points |
| Net Profit Margin | 40% | 29% | +1,100 Basis Points |
| Basic Earnings Per Share (EPS) | ₹12.94 | ₹5.29 | +144% |
The sharp rise in profitability highlights the company’s ability to capitalize on favorable commodity prices while maintaining tight cost controls and operational efficiency.
Revenue Driven by Strong Metals Business
The company’s core Zinc, Lead, and Silver business remained the primary growth engine during the quarter.
Segment Performance
Zinc, Lead & Silver Division
- Revenue: ₹9,146 Crore (vs. ₹6,116 Crore last year)
- Silver Revenue: ₹3,839 Crore (vs. ₹1,426 Crore)
- Segment Profit: ₹7,173 Crore (vs. ₹2,967 Crore)
The significant jump in silver revenue played a major role in boosting overall profitability during the quarter.
Wind Energy Division
- Revenue: ₹48 Crore
- Segment Profit: ₹27 Crore
While relatively small compared to the mining business, the wind energy segment continued to provide stable earnings.
Interim Dividend of ₹11 Per Share
Reflecting confidence in the company’s financial strength, the Board of Directors approved an interim dividend of ₹11 per equity share (face value ₹2 each).
Dividend Highlights
- Dividend per Share: ₹11
- Total Dividend Payout: ₹4,648 Crore
- Record Date: April 30, 2026
The sizeable dividend underscores Hindustan Zinc’s robust cash generation and shareholder-friendly capital allocation policy.
Key Financial Ratios Reflect Strong Balance Sheet
The company continued to maintain excellent financial health.
| Financial Ratio | Q1 FY2027 |
|---|---|
| Debt-to-Equity Ratio | 0.31 |
| Current Ratio | 2.03 |
| Debtor Turnover Ratio | 28.40x |
| Inventory Turnover Ratio | 2.62x |
| Interest Coverage Ratio | 53.02x |
| Debt Service Coverage Ratio | 7.44x |
| Net Worth | ₹23,587 Crore |
These indicators demonstrate the company’s strong liquidity, low leverage, and excellent ability to service debt.
Regulatory Developments
The company also updated investors on several regulatory matters during the quarter.
SEBI Observations
The Securities and Exchange Board of India (SEBI) communicated observations regarding certain related-party transactions, primarily concerning disclosure and approval processes.
According to the company:
- No financial penalty was imposed.
- No restrictions or sanctions were issued.
- Corrective measures have already been implemented.
- The Audit & Risk Management Committee and the Board of Directors reviewed the corrective actions and expressed satisfaction with the company’s response.
Enforcement Directorate (ED) Search
Between June 1 and June 3, 2026, the Enforcement Directorate (ED) conducted a search under the Foreign Exchange Management Act (FEMA), 1999 at company premises.
Hindustan Zinc stated that:
- It fully cooperated with investigating authorities.
- All requested documents and information were provided.
- No further communication has been received from the ED following the operation.
Response to Short Seller Allegations
Addressing allegations made in a short seller’s report during the previous year, the company reiterated that:
- The allegations remain baseless.
- All questioned transactions had commercial substance.
- Necessary approvals were obtained through established governance procedures.
- All requested information has already been submitted to relevant regulators.
Clean Auditor’s Report
Statutory auditor MSKA & Associates LLP issued an unmodified (clean) audit opinion on both the standalone and consolidated financial statements.
The auditor also noted reliance on reports from auditors of four subsidiaries, which together contributed:
- Revenue: ₹28.62 Crore
- Net Profit: ₹1.60 Crore
to the consolidated financial results.
Management Commentary
Commenting on the company’s exceptional quarterly performance, Mr. Arun Misra, Chief Executive Officer & Whole-time Director, said:
“The strong Q1 performance reflects our operational excellence and the favourable market environment. We continue to create value for our shareholders through consistent performance and prudent capital allocation.”
Management emphasized its continued focus on operational efficiency, disciplined capital deployment, and sustainable long-term value creation.
Stock Information
| Exchange | Scrip Code | Trading Symbol |
|---|---|---|
| BSE Limited | 500188 | HINDZINC |
| NSE India | — | HINDZINC |
About Hindustan Zinc
Hindustan Zinc Limited, a flagship company of the Vedanta Group, is India’s largest integrated producer of zinc, lead, and silver. Headquartered in Udaipur, Rajasthan, the company operates some of the country’s largest underground mining and metal production facilities.
With a diversified portfolio spanning mining, smelting, refining, silver production, and renewable energy, Hindustan Zinc plays a vital role in supplying essential metals to industries including infrastructure, automobiles, construction, renewable energy, and electronics.
Outlook
Hindustan Zinc’s exceptional Q1 FY2027 performance demonstrates the company’s strong operational capabilities, disciplined cost management, and ability to benefit from favorable global commodity markets.
With 77% revenue growth, 145% profit growth, expanding operating margins, a ₹4,648 crore interim dividend, and a robust balance sheet, the company enters the remainder of FY2027 from a position of considerable financial strength. Continued focus on production efficiency, sustainable mining practices, and prudent capital allocation is expected to support long-term growth and shareholder value.
