A very wonderful and encouraging news has emerged for investors from the Indian stock market and metal sector. Hindustan Zinc, the veteran of Vedanta Group and the country's leading mining company, has released the financial results for the second quarter (Q2) of the current financial year 2026-27. This quarterly performance of the company has been much better than the expectations and has broken all the previous records of profits and earnings. In the second quarter, a bumper jump of 142% has been recorded in the net profit of the company on an annual basis, after which the profit has increased to ₹ 6,412 crore. Let us know in detail what are the major reasons behind these excellent results of Hindustan Zinc and how has been the production of the company. Tremendous jump in quarterly profits and income, leaving behind market estimates. According to the official information given by Hindustan Zinc to the stock market, the consolidated net profit of the company in the second quarter of the financial year 2026-27 has directly jumped to ₹ 6,412 crore from ₹ 2,649 crore in the same quarter last year. Major market experts and analysts had estimated the company's profit in the second quarter to be around ₹ 5,821 crore, which the company easily surpassed. Along with profits, a record increase has also been recorded in the consolidated income of the company. In the second quarter of the current financial year, the company's total income increased by about 77% year-on-year to ₹ 15,093 crore, whereas in the same quarter of the last financial year this figure was ₹ 8,549 crore. On the income front too, the company has beaten the market's estimate of ₹13,967 crore. According to the company management, this is the highest earnings of the company so far in any quarter. Strong growth of 108% in EBITDA and excellent margin of more than 61%. Talking about the operational performance of the company, the consolidated EBITDA of Hindustan Zinc has jumped by 108% from ₹ 4,445 crore to ₹ 9,248 crore on an annual basis. The most important thing is that the company's EBITDA margin has increased to 61.27%, which was 52% in the same quarter last year. The company has described this as an excellent 'industry-leading margin'. Additionally, the company also recorded a strong free cash flow before growth capex of ₹6,389 crore in Q2, clearly demonstrating its financial strength. Great growth in metal production and silver production Hindustan Zinc's performance has been historic in terms of financials as well as production: Mined Metal: Mined metal production in the second quarter increased by 5% year-on-year to a record 271 kilo tonnes (KT). Refined Metal: Total refined metal production increased by 7% to 264 KT, the highest ever in any quarter. Improvement in cost of production: Excluding royalty, the cost of production of zinc decreased to $ 703 per tonne, which has seen a huge improvement of 29% on an annual basis. Silver business: Silver production increased by 20% to 173 tonnes in this quarter. Silver business once again made a significant contribution to the overall profitability of the company. The figures for the first half (H1) were also excellent. If we look at the overall performance from April to September i.e. the first half of the current financial year, the company has not disappointed the investors. The company's total net profit in the first half grew by 143% to a record ₹11,881 crore, while total revenue during the period increased by 77% to ₹28,840 crore. Zinc cost also improved by 23% in the first half to $776 per tonne, while total silver production increased by 10% to 321 tonnes. According to company data, the total return given to shareholders during this period was 15%, which is almost 12 times the return of Nifty 50. Contribution to the exchequer and special focus on green energy Along with economic progress, Hindustan Zinc, while fulfilling its social and environmental responsibility, has contributed a total of ₹ 13,027 crore to the exchequer through taxes, duties and mining royalties in the first half, which includes ₹ 3,724 crore to the state exchequer of Rajasthan alone. Working on environment and sustainability (ESG) fronts, the company has increased the share of renewable energy in its total power consumption to 27%. Apart from this, the company has signed several major agreements to include electric vehicles (EV Cranes & Trucks) in its smelter plants and mines, which is an important step towards environmental protection. After excellent results, investors are expecting good returns from this stock.
