HZHindustan Zinc500188Earnings call transcript

Q2 FY27 call: record net profit of INR6,412 crores, zinc cost guidance revised to $825-850 per ton

Hindustan Zinc has shared the transcript of its Q2 FY27 earnings call.

By ScoutQuest · Fri 23 Oct 2026, 3:30 PM IST · 2 min read

Revenue from operations

INR15,093 crores, up 77% year-on-year

Net profit (record)

INR6,412 crores; EBITDA INR9,285 crores, up 108%

Zinc cost guidance revised

Q2 zinc cost of production: $703 per ton; full-year guidance $825 to $850 per ton

What the call covered

This is the transcript of Hindustan Zinc's Q2 FY27 earnings call, where the CEO and CFO walked through the quarter's numbers, the cost position and the project pipeline.

The quarter in numbers

• Revenue from operations INR15,093 crores, up 77% year-on-year, helped by higher metal production, supportive commodity prices, better by-product realisation, lead concentrate sale and a stronger dollar.
• EBITDA INR9,285 crores, up 108% year-on-year; the CFO described it as the highest-ever quarterly EBITDA, helped by last year's debottlenecking, an additional roaster and cost of production.
• Net profit at a record INR6,412 crores.
• Zinc cost of production in Q2 FY27 $703 per ton.
• Saleable silver production 173 tons; management said the precious metal portfolio remains a very important contributor to profitability.

Cost guidance revised

• Full-year zinc cost of production guidance is now $825 to $850 per ton.
• The revision follows the improvement seen in Q2 cost of production.
• For a metal producer, a lower cost of production means more of each rupee of sales falls through to profit, and it gives some cushion if metal prices soften.

Projects and operations

• Engineering and procurement for the integrated zinc expansion are almost complete, and mine development is underway.
• The tailings reprocessing plant is progressing as per plan.
• Management said growth is technology-led and spoke of confidence in its growth journey on the back of the integrated business model.

How management sees the market

• India's growth outlook is seen as stronger than global growth, supported by government capital expenditure.
• Refined zinc demand is forecast to exceed supply in 2026, and new projects are limited, with mine closures and declining grades expected to keep the market tight over the next decade.
• Silver is expected to remain in deficit in 2026, with industrial demand rising.
• The CFO flagged near-term volatility from geopolitics, energy and trade disruptions and tariff policy, but called the medium-to-long term outlook for its key metals positive.

Points to keep in mind

• Cost guidance is management's full-year estimate; a single quarter's figure can move with input costs, currency and volumes.
• The zinc and silver demand-supply views are management's reading of forecasts, not guarantees.
• Commodity prices remain the biggest swing factor for revenue and profit.

Bottom line: the call presented a quarter of record profit on higher output, lower cost of production and supportive prices, along with a lower full-year cost guidance.

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