Jaipur: Vedanta group firm Hindustan Zinc Ltd (HZL) on Friday reported a record profit of Rs 5,033 crore for the March quarter of FY26, driven by higher zinc and silver prices and increased production. This represents a 68% increase from Rs 3,003 crore in the same period last year. The record quarterly profit was supported by an all-time high quarterly EBITDA of Rs 7,747 crore, up 61% year-on-year.
Annual Performance Highlights
The company also achieved a historic full-year (FY26) net profit of Rs 13,832 crore, up 34% year-on-year. Revenue for the fourth quarter of FY26 jumped 49% year-on-year to an all-time high of Rs 13,544 crore, bolstered by improved zinc and silver prices, higher production volumes, stronger by-product realisation, and a favourable dollar exchange rate.
Cost Discipline and Production Milestones
A key highlight was cost discipline, with the zinc cost of production falling to a historic low of $903 per tonne, down 9% year-on-year. Silver output stood at 176 tonnes during the quarter, up 11% sequentially, further supporting profitability. Operationally, Hindustan Zinc achieved its highest-ever mined metal production of 1.1 million tonnes, alongside its second-best refined metal output of 1 million tonne.
Capacity expansion efforts, including debottlenecking at the Chanderiya smelting complex and earlier upgrades at Dariba, have strengthened its production base. The company also reported a five-year low zinc cost of production at $959 per tonne for the full year.
Silver's Contribution and Long-Term Outlook
Silver continued to play a pivotal role in earnings, with annual production of 627 tonnes contributing nearly 45% to overall profitability. The company also strengthened its long-term outlook by reporting record ore reserves and resources of 468.6 million tonnes, translating into a mine life exceeding 25 years.
Management Commentary
Arun Misra, CEO of the company, said, “The company crossed a key milestone of 1.1 million tonnes of mined metal production while maintaining its lowest-ever quarterly cost structure despite global uncertainties.” Similarly, CFO Sandeep Modi highlighted disciplined capital allocation and strong cash flows as key drivers of the record profitability.
