Hindustan Zinc Q2 FY27 Earnings Call: Net Profit Surges 142% YoY, COP Guidance Cut to $825-850/Tonne (HINDZINC)

Hindustan Zinc Ltd held its Q2 FY27 earnings call on October 19, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarter Across Revenue, EBITDA and Profit

• Revenue of Rs.15,093 crore in Q2 FY 2026-2027 — up 77% YoY vs Q2 FY 2025-2026; H1 FY 2026-2027 revenue was Rs.28,840 crore, also up 77% YoY.
• Record EBITDA of Rs.9,285 crore — up 108% YoY at an industry-leading 62% margin; H1 FY 2026-2027 EBITDA was Rs.17,359 crore (up 108%).
• Net profit of Rs.6,412 crore — up 142% YoY; H1 FY 2026-2027 net profit was Rs.11,881 crore (up 143%), with H1 total shareholder return of 15%.
• Free cash flow before growth capex of Rs.6,389 crore — quarter ended with a net cash balance of Rs.11,268 crore.
• Zero fatalities reported in the quarter, alongside record profitability.

COP Guidance Slashed on Acid Realizations

• Zinc cost of production improved 29% YoY to $703/tonne in Q2 FY 2026-2027 (excl. royalty), tracking in line with the revised full-year estimate.
• FY 2026-2027 COP guidance revised from $975-1,000/tonne to $825-850/tonne — CFO Amit Gupta attributed the cut to strong sulfuric acid realizations, partially offset by ~$50/tonne of geopolitical cost escalations.
• Mine metal production up 5% YoY and refined metal production up 7% YoY in Q2 FY 2026-2027.
• Saleable silver production rose 20% YoY to 173 tonnes in Q2 FY 2026-2027, contributing ~45% of H1 FY 2026-2027 profitability.
• Ore grade at ~6.7%-7.6% for Q2 FY 2026-2027; domestic coal usage stood at 32% in the quarter.
• Sulphuric acid benefit not broken out — CFO disclosed FY 2025-2026 byproduct revenue of ~Rs.1,000-1,200 crores but declined to guide on H1 FY 2026-2027 run-rate, citing auction-price byproduct dynamics; COP is disclosed only as an overall number.

Hedge Book Laid Out; Rs.5,000 Cr FY27 Capex Plan

• Zinc hedges of 40 KT for Q3 FY 2026-2027 at $3,476 and 36 KT for Q4 FY 2026-2027 at $3,698.
• Silver hedges of 8 tons for Q3 FY 2026-2027 at a rate of $68.
• Q2 FY 2026-2027 capex split — sustaining capex of Rs.1,200 crore and growth capex of Rs.700 crore.
• Total capex of Rs.5,000 crore guided for FY 2026-2027 — management expects higher spending in Q3 and Q4 FY 2026-2027.

Expansion on Track; REE Blocks in Early Stages

• Engineering and procurement for the 250 KTPA integrated zinc expansion almost complete — mine development is underway; the 10 MTPA tailing reprocessing plant is progressing as per plan.
• Exploration for 3 of 4 critical mineral blocks concludes in Q3 FY 2026-2027 — CFO guided that a production plan will then be based on ore body position and resources.
• Mining lease executed for the Gundu Pit REE block and Yatimpa — resource and business plan indications expected in the next 2-3 years.
• Concentrate sales of 10 KT in Q2 FY 2026-2027 (including 10 tons of silver and 6,000 tons of lead) generated Rs.300 crores revenue and Rs.150 crores profit; future sales depend on capacity vs. metal output decisions.

FY27 Silver Target Maintained; FY28 Aspiration Signalled

• FY 2026-2027 silver production guidance maintained at 680 tons — H1 production of 340 tons (including 20 tons from concentrate sales) underpins management's confidence in the H2 target.
• FY 2027-2028 silver production of 730-750 tons is a hope, not guidance — supported by debottlenecking projects, with final guidance to be set towards the end of the current fiscal year.
• Global refined zinc market faces a 180 KT deficit in 2026 (supply 13.69 MT vs demand 13.87 MT) — management expects markets to remain tight over the next decade.
• Industry expects silver to remain in deficit for the sixth consecutive year in 2026, with a shortfall of 1.44 KT.
• Government capex budgeted at ~4.4% of GDP in FY 2026-2027 — supporting India's growth outlook, with GDP projected at 6.4% in 2026 and 6.7% in 2027.
• Near-term volatility risks flagged — geopolitical tensions, energy disruptions and tariff policies; management cited resilient domestic consumption and sustained infrastructure investment as offsets.

2x Growth Ambition, AI Focus and Net Zero 2050

• Management reiterated its 2x growth ambition — anchored on AI-driven growth, cost leadership, capacity expansion and a strong balance sheet to navigate commodity cycles.
• Renewable energy at 27% of power consumption in Q2 FY 2026-2027 — management intends to increase this to 35% (period unspecified); subsidiary HZAPL operates on 100% renewable power.
• Net zero commitment reiterated by 2050.
• 3,000 namghars added across Rajasthan under CSR — taking the total to 12,263.