Hindustan Zinc Financial Breakdown: Revenue, Profit, Ratios
Hindustan Zinc has just delivered the strongest quarter in its history. On 19 October 2026, the company reported a Q2 FY27 net profit of ₹6,412 crore — up 142% year-on-year — riding a surge in silver and zinc prices alongside record mine production. Here is a full breakdown of Hindustan Zinc's financials: five years of revenue and profit trends, margins, balance sheet, key ratios, segment split, shareholding, dividends, peer comparison and the key risks.
About the Business
Hindustan Zinc Limited (NSE: HINDZINC), headquartered in Udaipur, Rajasthan, is a subsidiary of Vedanta Limited. Incorporated in 1966, it is the world's largest integrated zinc producer and India's only primary silver producer.
- Mining: five underground mines — Rampura Agucha, Sindesar Khurd, Rajpura Dariba, Kayad and Zawar — with total ore resources and reserves of 468.6 million tonnes as of FY26 (roughly 25+ years of mine life).
- Smelting: integrated smelters at Chanderiya, Dariba and Debari with refined zinc-plus-lead capacity of approximately 1,129 thousand tonnes per annum.
- Diversification: composite licences for three critical mineral blocks — potash (Rajasthan), tungsten (Andhra Pradesh) and rare earth elements (Uttar Pradesh) — plus a planned fertiliser (DAP/NPK) plant in Rajasthan.
- Market cap: roughly ₹2.28 lakh crore (October 2026), making it one of India's largest metal companies.
Q2 FY27 Results (Announced 19 October 2026)
The standout feature of the quarter was silver: a 165% year-on-year jump in average silver prices (FY26 average $53.1/oz, up 75%) flowed straight through to earnings.
| Particular (₹ cr) | Q2 FY27 | Q2 FY26 | Change YoY |
|---|---|---|---|
| Revenue from operations | 15,093 | 8,549 | +76.6% |
| EBITDA | 9,248 | 4,467 | +107.0% |
| EBITDA margin | 61.3% | 52.3% | +900 bps |
| Net profit (PAT) | 6,412 | 2,649 | +142.0% |
| H1 FY27 revenue | 28,840 | 16,320 | +76.7% |
| H1 FY27 PAT (record) | 11,881 | 4,891 | +142.9% |
Operational highlights for the quarter:
- Record mined metal production of 271 thousand tonnes (+5% YoY); refined metal output 264 thousand tonnes (+7% YoY).
- Zinc cost of production fell 29% YoY to $703/tonne (excluding royalty), helped by better ore grades and higher renewable power use.
- The ₹6,412 crore PAT beat the analyst consensus estimate of ₹5,593 crore.
- As of 30 September 2026, the company held gross cash and investments of ₹17,439 crore against borrowings of ₹6,171 crore — net cash of about ₹11,268 crore.
Five-Year Revenue and Profit Trend (FY22–FY26)
The numbers below are consolidated, revenue from operations.
| Financial year | Revenue (₹ cr) | PAT (₹ cr) | EPS (₹) | Operating margin | Net margin |
|---|---|---|---|---|---|
| FY22 | 29,440 | 9,629 | 22.79 | 55.1% | 32.7% |
| FY23 | 34,098 | 10,511 | 24.88 | 51.3% | 30.8% |
| FY24 | 28,932 | 7,759 | 18.36 | 47.2% | 26.8% |
| FY25 | 34,083 | 10,353 | 24.50 | 51.0% | 30.4% |
| FY26 | 40,844 | 13,832 | 32.74 | 54.0% | 33.9% |
Revenue grew at a five-year CAGR of roughly 8.5% while profit grew faster (about 9.5% CAGR) — a sign of genuine margin expansion, not just higher sales. FY24 was the weak year (zinc prices soft), FY25 recovered, and FY26 was a record on every parameter.
Key Financial Ratios (FY26)
| Ratio | FY26 | FY25 |
|---|---|---|
| Return on equity (ROE) | ~76.9% | ~72.6% |
| Return on capital employed (ROCE) | ~69.8% | ~60.3% |
| Debt-to-equity | ~0.37x | ~0.84x |
| Interest coverage | Comfortable (interest ₹881 cr vs EBIT ~₹22,164 cr) | — |
The company converted 33.9% of revenue into net profit in FY26 — among the highest of any large Indian industrial company — and it sits on a net-cash balance sheet, an unusual combination for a mining company.
Balance Sheet and Cash Flow Strength
- Operating cash flow FY26: ₹17,008 crore against capital expenditure of ₹5,262 crore, leaving free cash flow of ₹11,746 crore.
- Net cash: gross cash and investments of ₹17,439 crore versus borrowings of ₹6,171 crore as of September 2026.
- Reserves: shareholder funds of ₹22,629 crore as of March 2026; long-term debt of only ₹4,614 crore.
The machine generates more cash than it can spend — which is exactly why it is one of the biggest dividend payers in the metal sector.
Revenue Split by Segment (FY26)
Of FY26 revenue of ₹40,844 crore (per the company's 4Q FY26 investor presentation):
| Segment | FY26 revenue (₹ cr) | Share |
|---|---|---|
| Zinc | 23,771 | 58% |
| Silver | 9,841 | 24% |
| Lead | 3,901 | 10% |
| Others (by-products, wind power) | 3,331 | 8% |
Silver deserves special attention: although it is 24% of revenue, it contributes roughly 40% of net profit, because silver rides along almost free in the zinc-lead ore and carries very high margins. This is also the stock's biggest sensitivity — a silver price reversal would hit profits harder than a zinc reversal.
Shareholding Pattern
As of June 2026:
- Promoters (Vedanta Group): ~60.71% (down from ~61.84% a year earlier).
- FIIs: ~2.2%; DIIs: ~5.0%.
- Public: ~32%, which includes the Government of India's strategic ~29.5% stake.
Dividend History
Hindustan Zinc is a serial dividend payer, often distributing more than 100% of profits.
- FY26: ₹10/share interim dividend (declared June 2025), ₹4,225 crore total — the Government received nearly ₹1,180 crore from it.
- Recent history (per share): 2026 — ₹11; 2025 — ₹10; 2024 — ₹29 (₹10 + ₹19); 2023 — ₹52 (₹13 + ₹26 + ₹7 + ₹6).
- Payout ratio FY25: roughly 118% of profits.
- Dividend yield: around 2–4% depending on the year's payout and price — among the highest for large-cap metal stocks.
Peer Comparison
| Company | Annual revenue (₹ cr) | Net margin | P/E (TTM) | P/B |
|---|---|---|---|---|
| Hindustan Zinc | 40,844 | 33.7% | ~14.2 | ~8.7 |
| Hindalco Industries | ~2,74,944 | 7.4% | ~13.1 | ~1.5 |
| Vedanta (parent) | ~78,437 | 15.7% | ~5.2 | ~1.9 |
| Hindustan Copper | ~1,900 | ~18% | ~55 | ~8.2 |
Hindustan Zinc stands out for its extraordinary margins and return ratios, but also trades at a premium book multiple. For comparison of another metals major, see our JSW Steel financial breakdown.
Key Risks
- Commodity prices: around 82% of revenue comes from zinc, lead and silver prices set on global exchanges. The record FY26–H1FY27 numbers owe heavily to a silver rally that may not repeat.
- Silver concentration: with ~40% of net profit tied to silver, a sharp correction in silver prices would hurt disproportionately.
- High payouts: dividend payouts above 100% of profits limit the cash buffer for downturns and growth capex.
- Mining levies: royalties and government mining charges can change; the company operates under multiple state and central regulations.
- Ore depletion: reserves support 25+ years at current rates, but sustaining production requires continuous exploration and development capex.
FAQs
Q: What was Hindustan Zinc's Q2 FY27 profit?
A: ₹6,412 crore, up 142% year-on-year — the highest quarterly profit in the company's history, announced on 19 October 2026.
Q: What is Hindustan Zinc's main business?
A: Integrated zinc, lead and silver mining and smelting. It is the world's largest integrated zinc producer and India's only primary silver producer, and a subsidiary of Vedanta Limited.
Q: Is Hindustan Zinc debt-free?
A: As of September 2026 it held ₹17,439 crore of cash and investments against borrowings of ₹6,171 crore — i.e. net cash of about ₹11,268 crore, with a debt-to-equity ratio of roughly 0.37x.
Q: Who owns Hindustan Zinc?
A: Vedanta Group holds ~60.7% (promoter), the Government of India holds ~29.5%, with FIIs and DIIs holding the rest as of June 2026.
Q: Does Hindustan Zinc pay dividends?
A: Yes — it is one of India's most consistent dividend payers. It paid ₹10/share interim in June 2025 and has a history of payouts often exceeding annual profits (FY25 payout was ~118%).
Conclusion
Hindustan Zinc is a cash machine built on one of the world's best zinc mines: FY22–FY26 revenue grew from ₹29,440 crore to ₹40,844 crore, FY26 PAT hit a record ₹13,832 crore at a 34% net margin, and the balance sheet is in net cash. The record H1 FY27 — PAT of ₹11,881 crore, up 143% — shows how powerfully earnings respond when metal prices cooperate. The flip side is concentration: silver alone drives ~40% of profit, payouts run above earnings, and the entire story hinges on commodity cycles. The numbers are exceptional; the dependency is real.
Disclaimer: This article is for educational purposes only and is not investment advice. Please do your own research or consult a SEBI-registered advisor before investing.