Hindustan Zinc Q3 Results: Vedanta subsidiary posts highest-ever quarterly profit at ₹3,916 crore, up 46% YoY

Mumbai: Hindustan Zinc Ltd reported a record high quarterly profit in the three months ended 31 December, driven by a sharp rise in silver prices and lower production costs. Silver accounted for nearly half of the company’s profit, while falling cost of inputs such as coal and efficiency gains helped lift margins further. The strong performance helped the Vedanta Group firm to return to a net-cash position.

The company stuck to its guidance of 680 tonnes of silver production for FY26 despite production during the first nine months ending 31 December being just 451 tonnes, an average of 150 tonnes per quarter. If the company manages to beat the trend and sell 229 tonnes of silver between January and March, the performance would set up another record quarter, experts said.

The erstwhile state-owned company and now the cash cow of the Vedanta Group reported a consolidated net profit of ₹3,916 crore for October-December, the highest-ever for a fiscal quarter and nearly a half more than the same period last year.

The company said it derived nearly 44% of its profit from sale of silver, which rallied to an average price of $54.73 per troy ounce during the quarter, 74% more than the same period last year. Average prices of silver surged to a record $64.34 an ounce in December.

Consolidated revenue during the quarter grew 27% year-on-year to ₹10,980 crore. Earnings before interest, tax, depreciation and amortization (Ebitda) grew 34% to ₹6,036 crore.

While silver prices surged, zinc and lead prices remained steady at their elevated levels. The company recorded average zinc and lead prices of $3,165 and $1,970 a tonne, respectively, compared to $3,050 and $2,007 a year ago.

Lowering the cost of producing these metals aided Hindustan Zinc’s margins. The company recorded a cost of production of $940 a tonne during the quarter, a sharp fall from $1,041 a year ago. The average production cost for the first nine months of FY26 was $980 a tonne, compared to $1,073 a year ago.

Every $25 per tonne movement in the cost of production results in an impact of ₹210-230 crore on the consolidated Ebitda, the company said in an investor presentation.

Record performance

“The quarter marked a record performance, reflecting operational excellence and strong fundamentals with the company achieving its highest-ever third quarter metal production and five-year lowest quarterly zinc cost of production of $940 per tonne,” Arun Misra, the company's chief executive officer, said in a press statement.

The record performance helped the company return to a net-cash position after significant dividend payouts had brought the cash-rich firm to a net-debt position in recent quarters. The company ended the quarter with a net cash of ₹329 crore as of 31 December from a net debt position of ₹2,547 crore as of 30 September.

Mined metal production reached a quarterly high, refined metal output improved sequentially, and zinc production costs fell to a five-year low, underscoring operational efficiency rather than just favourable pricing, said Dasani. "This operating leverage translated into EBITDA of over ₹6,000 crore, comfortably ahead of market expectations, highlighting the quality and sustainability of earnings."

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