Key Takeaways
- Net profit jumps 145% YoY to Rs 5,469 crore; up 9% QoQ from Rs 5,033 crore
- Revenue from operations climbs 77% YoY to Rs 13,747 crore
- Silver segment revenue soars 169% YoY to Rs 3,839 crore
- Net profit margin expands to 40%, operating margin at 52%
- Debt-to-equity ratio improves sharply to 0.32x from 1.19x YoY
- Board reviews SEBI’s April 2026 administrative warning letter
- Stock trades flat near Rs 530; down 13% YTD on silver correction
Hindustan Zinc Q1 FY27 Results: Profit and Revenue Snapshot
Hindustan Zinc Q1 results are out, and the numbers have given the Street plenty to cheer about. The Vedanta group company on Friday reported a consolidated net profit of Rs 5,469 crore for the first quarter of FY27, a sharp 145% year-on-year jump from Rs 2,234 crore in the same quarter last year. The blowout Hindustan Zinc Q1 results were powered by a rally in silver prices, record first-quarter mined metal output, and a low base from a weak Q1 FY26.
Revenue from operations climbed around 77% YoY to Rs 13,747 crore for the quarter ended June 30, 2026, up from Rs 7,771 crore a year earlier. Total expenses rose over 33% YoY to Rs 6,749 crore during the same period, indicating that revenue growth comfortably outpaced cost inflation and drove the sharp expansion in profitability.
On a sequential basis, net profit rose nearly 9% from Rs 5,033 crore in Q4 FY26, extending the company’s streak of back-to-back record quarters. Hindustan Zinc, India’s largest silver producer and the world’s second-largest integrated zinc producer, has now posted profit growth in three straight quarters, aided by firm commodity prices and disciplined cost control.
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Key Financials (₹ Crore)
| Metric | Q1 FY27 | YoY Change | QoQ Change |
|---|---|---|---|
| Net Profit | 5,469 | +145% | +9% |
| Revenue from Operations | 13,747 | +77% | +1.5% |
| Total Expenses | 6,749 | +33% | -5% |
| Net Profit Margin | 40% | vs 29% (Q1 FY26) | vs 37% (Q4 FY26) |
| Operating Margin | 52% | — | — |
Silver Business Steals the Show
The silver segment was the standout performer in the Hindustan Zinc Q1 results. Revenue from the silver business surged 169% YoY to Rs 3,839 crore, up from Rs 1,426 crore in the year-ago quarter, even as it slipped 5% on a sequential basis. The zinc, lead and other metals business grew a healthier 50% YoY and 5% QoQ to Rs 9,146 crore, benefiting from firmer LME prices and steady domestic offtake.
Segment-wise Revenue (₹ Crore)
| Segment | Q1 FY27 | YoY Change | QoQ Change |
|---|---|---|---|
| Silver | 3,839 | +169% | -5% |
| Zinc, Lead & Others | 9,146 | +50% | +5% |
The silver outperformance tracks a broader global rally in the white metal through 2026, which has lifted realisations for producers even as volumes stayed largely stable. Silver’s outsized contribution also explains why the stock has underperformed even as profits soared, since the stock has been more sensitive to swings in silver prices than to the underlying earnings momentum.
Margins Expand, Balance Sheet Turns Stronger
Profitability metrics improved sharply across the board. Net profit margin rose to 40% in the June quarter of FY27, compared with 37% in Q4 FY26 and just 29% in Q1 FY26. Operating margin expanded to 52% during the quarter, reflecting the combination of higher realisations and continued cost discipline at its mining and smelting operations.
The company’s net worth more than doubled YoY, rising 108% to Rs 23,587 crore as of June 30, 2026. Its debt-to-equity ratio improved dramatically to 0.32 times from 1.19 times in the year-ago quarter, pointing to significant deleveraging.
The balance-sheet strength comes alongside a separate promoter-level development, a $1 billion facility agreement between related entities Twin Star Holdings and Vedanta Resources executed in mid-July, which places certain passive covenants on the company’s operations even though it itself carries no direct obligation under the deal.
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Record Production Cushions the Quarter
Beyond the headline financials, Hindustan Zinc also delivered its highest-ever first-quarter mined metal production, crossing 268,000 tonnes. Total saleable metal output grew 4% YoY to 260,000 tonnes, building on the momentum from a record-low cost of production of $994 per tonne achieved in Q4 FY26.
Management has previously flagged a modest uptick in FY27 zinc cost guidance to $975-1,000 per tonne, partly reflecting a West Asia-linked risk premium, which will be a key metric to track through the rest of the financial year.
SEBI Warning Letter Comes Up at Board Meeting
Hindustan Zinc’s board, at its meeting on Friday, also reviewed an administrative warning letter issued by the Securities and Exchange Board of India in April 2026.
The warning flagged non-compliance with Regulations 4(1), 4(2), 23(2) and 48 of the SEBI Listing Obligations and Disclosure Requirements Regulations, read with Ind-AS 24, relating to procedural aspects of Audit Committee approvals and disclosures spanning FY22 and FY25.
SEBI did not impose any monetary penalty. The board and audit committee termed the lapses inadvertent and reaffirmed the company’s commitment to governance standards, and has been directed to update stock exchanges once corrective action is completed.
Hindustan Zinc Share Price Today
Shares of Hindustan Zinc traded with marginal losses at around Rs 530 apiece on Friday afternoon following the results announcement. The stock has gained a little over 2% in the past week but is down more than 2% over the past month and nearly 13% on a year-to-date basis in 2026, weighed down by a sharp correction in silver prices from recent highs.
Despite the near-term weakness, the longer-term trend remains constructive. The stock has delivered close to 19% returns over one year, 68% over three years and 62% over five years, comfortably outpacing broader market benchmarks over the medium term. The company commands a market capitalisation of nearly Rs 2.24 lakh crore, keeping it among the top metal and mining names on Indian bourses.
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Outlook for Hindustan Zinc
With three consecutive quarters of strong earnings, a deleveraged balance sheet and record production, Hindustan Zinc heads into the rest of FY27 with a firmer operating base. Investors will watch the management commentary from Friday’s earnings call for guidance on silver volume targets, zinc cost trends and the Dariba and fertiliser project pipeline, all of which could shape earnings momentum in the coming quarters.
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FAQ’S
Q1. What is Hindustan Zinc’s Q1 FY27 net profit?
Hindustan Zinc reported a consolidated net profit of Rs 5,469 crore for Q1 FY27, up 145% YoY and 9% QoQ.
Q2. Why did Hindustan Zinc’s profit jump 145% in Q1 FY27?
The surge was driven by a 169% YoY jump in silver segment revenue, record mined metal production, and a low base from a weak Q1 FY26.
Q3. What is Hindustan Zinc’s share price today?
Hindustan Zinc shares traded with marginal losses at around Rs 530 apiece on Friday afternoon after the results were announced.
Q4. What was SEBI’s warning letter to Hindustan Zinc about?
SEBI issued an administrative warning in April 2026 over procedural non-compliance in Audit Committee disclosures under LODR regulations, with no monetary penalty imposed.
Q5. What is Hindustan Zinc’s net profit margin in Q1 FY27?
Net profit margin stood at 40% in Q1 FY27, up from 29% in Q1 FY26 and 37% in Q4 FY26.
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