Hindustan Zinc Q3 FY26 Results: Vedanta unit's net profit rises 48% sequentially to Rs 3,916 crore; revenue grows

Hindustan Zinc Ltd reported its operational and financial performance for the December quarter, with an increase in production, lower costs and higher margins on a year-on-year and quarter-on-quarter basis.

Total revenue from operations rose 27.5 per cent to Rs 10,980 crore from Rs 8,614 crore in the same quarter last year. Total income increased 27.7 per cent to Rs 11,273 crore from Rs 8,832 crore a year ago. Total expenses for the quarter stood at Rs 6,068 crore, up 14.4 per cent from Rs 5,305 crore in the corresponding period last year.

Net profit for the quarter rose 47.8 per cent to Rs 3,916 crore from around Rs 2,650 crore in the year-ago period.

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Record Metal Production

Mined metal production during the quarter stood at 276 kilo tonnes (Kt), the highest level recorded by the company for a third quarter. This was up 7 per cent quarter-on-quarter and 4 per cent year-on-year.

Refined metal production for the quarter was 270 Kt, also the highest for a third quarter, registering a growth of 9 per cent sequentially and 4 per cent compared with the same period last year.

The cost of production declined to $940 per tonne during the quarter, the lowest level in five years. This was lower by 5 per cent on a quarter-on-quarter basis and 10 per cent year-on-year.

Strong Financial Performance

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter rose to Rs 6,087 crore, reflecting an increase of 36 per cent quarter-on-quarter and 34 per cent year-on-year. EBITDA margin stood at 55 per cent, higher by about 320 basis points sequentially and around 270 basis points compared with the same quarter last year.

Silver production during the quarter was 158 metric tonnes, up 10 per cent quarter-on-quarter. The company said silver contributed 44 per cent to profits during the quarter.

Commenting on the performance, Chief Executive Officer Arun Misra said, “The quarter marked a record performance, with the company achieving its highest-ever third quarter metal production and five-year lowest quarterly zinc cost of production of $940 per tonne.”

Chief Financial Officer Sandeep Modi said, “The company reported record financial performance for the quarter and nine months, with third-quarter profit after taxes rising 48 per cent sequentially to Rs 3,916 crore, driven by higher revenue and EBITDA.”

Capacity Expansion and New Projects

During the quarter, the company completed debottlenecking at the Chanderiya Smelter, resulting in an increase in refined zinc capacity by 21 kilo tonnes per annum, including capacity added earlier at the Dariba Smelter. The company was also declared the successful bidder for the Tungsten Block in Balepalyam, Andhra Pradesh.

Nine-Month Performance

For the nine months ended December, mined metal production stood at 799 Kt, the highest level recorded by the company. Refined metal production during the period was 766 Kt, the second-highest level achieved so far. The cost of production for the nine months declined to $980 per tonne, down 9 per cent year-on-year.

Revenue for the nine months rose 9 per cent to Rs 27,300 crore from the corresponding period last year. EBITDA for the period stood at Rs 14,415 crore, registering a year-on-year increase of 14 per cent, with margins of around 53 per cent. Profit after tax for the nine months increased 20 per cent year-on-year to Rs 8,799 crore.

The company said total shareholder returns during the nine months stood at 35 per cent, including a dividend of Rs 10 per share.

Sustainability and Recognition

During the quarter, the company flagged off 10 electric vehicle bulker trucks at its Debari zinc smelter in collaboration with Enviiro Wheels Mobility Pvt Ltd, with plans to expand the fleet to 40 vehicles.

Kayad Mines received a GreenCo Silver rating for the period 2025–2028. The company also received awards related to supply chain, corporate social responsibility, inclusion and management practices.