Hindustan Zinc Ltd (HINDZINC) Q1 FY27 Results Analysis: PAT Surges 145%, EBITDA Margin Expands 890 bps

Hindustan Zinc Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 13,747.00 Cr (+76.90% YoY) and PAT growth of +144.80% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 77% YoY and PAT surged 145% YoY, driven by higher LME zinc prices and silver volumes. EBITDA margin expanded 890 bps to 58.56%, debt/equity improved from 1.19x to 0.31x, and silver revenue more than doubled to become a major profit driver. Regulatory observations from SEBI and an ED search remain watch items but have not resulted in financial penalties.

Key Investment Insights

Key Positives

• Revenue grew 76.9% YoY to Rs.13,747 crore, driven by higher LME zinc prices and silver volumes.
• EBITDA margin expanded 890 bps YoY to 58.56%, with total expenses growing only 33.2% YoY.
• PAT grew 144.8% YoY to Rs.5,469 crore, EPS at Rs.12.94 vs Rs.5.29 YoY.
• Debt/Equity ratio improved from 1.19x to 0.31x, reflecting aggressive deleveraging.
• Silver revenue surged 169.2% YoY to Rs.3,839 crore, becoming 29.6% of segment revenue.
• Interest Service Coverage Ratio tripled from 16.25x to 53.02x.

Risk Factors

• SEBI communicated observations on related party transactions (approvals and disclosure aspects), though no financial penalty was imposed.
• Enforcement Directorate conducted a search under FEMA at HZL premises from June 1-3, 2026; no further communication received yet.
• Silver price corrected from $83/oz in April to ~$64/oz by mid-June, though volumes and import duty tailwind offset the impact.