Hindustan Zinc Ltd

Hindustan Zinc Limited reported strong operational and financial performance in Q2 FY27, with mined metal production up 5% YoY and refined metal production up 7% YoY. Zinc cost of production improved by 29% to $703 per ton, and the company revised its full-year guidance to $825–$850 from the earlier $975–$1,000. EBITDA reached INR9,285 crores, and net profit hit INR6,412 crores, both record highs. The company highlighted strong zinc and silver demand fundamentals, with a 180 KT zinc deficit and a 1.44 KT silver deficit expected in 2026. Strategic initiatives include expanding renewable energy use to 35% of power consumption, AI integration, and new projects like a 250 KTPA zinc expansion and a 10 million ton tailing reprocessing plant. The company also emphasized ESG efforts, including 100% renewable power at a subsidiary and 3,000 new Nand Ghars in Rajasthan. Financially, the company reported INR15,093 crores in revenue, up 77% YoY, and INR6,389 crores in free cash flow before growth capex. The CFO noted challenges from geopolitical tensions and energy disruptions but expressed confidence in the medium-term outlook for metals. The company also discussed hedging positions, with 40 KT of zinc hedged for Q3 at $3,476 and 36 KT for Q4 at $3,698, along with 8 tons of silver hedged at $68 per ounce. Management guided toward sustaining cost leadership and advancing growth projects while maintaining a strong balance sheet. The company’s half-year revenue reached INR28,840 crores, with EBITDA at INR17,359 crores and net profit at INR11,881 crores, reflecting robust performance. The company also mentioned exploration progress on critical mineral blocks, with exploration expected to conclude by Q3 FY29.

The document emphasizes strong financial results, operational improvements, and positive demand fundamentals for zinc and silver, with management expressing confidence in strategic initiatives and long-term growth.