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Key Points

Hindustan Zinc reported a 26% drop in Q1 profit, impacted by lower metal prices and volumes. Revenue fell 14.5% sequentially but was partially offset by stronger silver prices. The company maintained a robust EBITDA margin of 50% while achieving record-low production costs. Renewable energy initiatives and cost optimizations helped mitigate some financial pressures.

Key Points: Hindustan Zinc Q1 Profit Falls 26% as Revenue Declines

  • Hindustan Zinc Q1 profit drops 26% sequentially to Rs 2,234 crore
  • Revenue declines 14.5% QoQ due to weaker zinc, lead prices
  • EBITDA falls 2% YoY but maintains strong 50% margin
  • Achieves lowest Q1 zinc production cost since underground mining transition
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Vedanta-owned Hindustan Zinc's Q1 profit falls 26 pc sequentially, revenue dips

Vedanta-owned Hindustan Zinc reports 26% sequential profit drop to Rs 2,234 crore in Q1 FY26, with revenue down 14.5%.

"The fall was primarily driven by reduced volumes and softer metal prices. – Hindustan Zinc Regulatory Filing"

Mumbai, July 18

Vedanta-owned Hindustan Zinc on Friday reported a sharp 25.6 per cent sequential drop in its consolidated net profit for the first quarter of the current financial year (Q1 FY26), with earnings falling to Rs 2,234 crore.

The company had posted a profit of Rs 3,002 crore in the previous quarter (Q4 FY25), according to its stock exchange filing.

On a year-on-year (YoY) basis, profit also declined by 4.7 per cent from Rs 2,345 crore in Q1 FY25.

The company’s revenue from operations also took a hit. It stood at Rs 7,771 crore in the June quarter, down 14.5 per cent compared to Rs 9,087 crore in the March quarter.

On a yearly basis, revenue declined by 4.4 per cent from Rs 8,130 crore, as per its filing.

The fall in revenue was mainly due to lower volumes and weaker prices of zinc and lead, although this was partly cushioned by stronger silver prices, favourable dollar movement, and improved realisations from by-products.

In its regulatory filing, Hindustan Zinc said that its EBITDA for the quarter was Rs 3,860 crore -- showing a 2 per cent decline from the same period previous year.

The fall was primarily driven by reduced volumes and softer metal prices. Despite this, the company maintained a strong EBITDA margin of around 50 per cent.

The company also highlighted a significant achievement -- the lowest zinc production cost in any first quarter since it transitioned to underground mining.

The cost stood at $1,010 per tonne, which is 9 per cent lower than the same quarter previous year.

This improvement was due to better metal grades, greater use of domestic coal and renewable energy, improved by-product revenue, and a decline in input costs.

However, lower production volumes partially offset these benefits. Earlier, on June 11, the Board of Directors had declared an interim dividend of Rs 10 per equity share for FY26, with June 17 as the record date.

On the renewable energy front, Hindustan Zinc said it is sourcing 530 MW of renewable power on a round-the-clock basis through a long-term arrangement with Serentica Renewables India Private Limited.

As part of this green energy initiative, the company has invested Rs 49 crore till June 2025.

- IANS

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Reader Comments

P
Priya S
Worried about the dividend payout - Rs 10 per share seems low compared to previous quarters. My father relies on these dividends as part of his retirement income. Hope Q2 shows better numbers 🤞
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Aman W
The cost reduction to $1010/tonne is remarkable! Shows Indian manufacturing can compete globally if we focus on efficiency. More companies should learn from their renewable energy and domestic coal strategy 👏
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Sarah B
As an investor, I'm concerned about the consistent YoY decline. The management needs to address how they'll tackle the volume issues. Good cost control but revenue growth is equally important for long-term sustainability.
K
Karthik V
Silver lining is the renewable energy initiative! 530MW is no small feat. More Indian companies should follow this path - good for business and environment both. Desh ka future bright hai! 💡
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Nisha Z
The numbers look bad but context matters - global zinc prices have fallen 15% this year. HZL is actually doing better than many international peers. Long-term investors shouldn't panic based on one quarter.

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