Hindustan Zinc Ltd (HINDZINC) Q2 FY27 Results Analysis: PAT Jumps 142%, EBITDA Margin Hits Record 61.3%

Hindustan Zinc Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 15,093.00 Cr (+76.60% YoY) and PAT growth of +142.10% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

HINDZINC delivered record Q2 results with revenue up 76.6% YoY to Rs.15,093 Cr, PAT up 142.1% to Rs.6,412 Cr, and EBITDA margin at a record 61.3% (+930 bps YoY), driven by zinc LME at ~$3,732/MT, silver at ~$59-61/oz, and record Q2 mined metal of 271 kt. FY27 production guidance (1,150 KTPA mined metal, 1,100 KTPA refined metal, 680 t silver) is on track at the H1 mark, while the balance sheet strengthened to 0.21x debt/equity with H1 free cash flow of Rs.10,135 Cr. Watch items are coal-linked power cost pressure (power and fuel +13.6% YoY) and the QoQ decline in silver prices from $73.2 to ~$59-61/oz.

Key Investment Insights

Key Positives

• Revenue grew 76.6% YoY to Rs.15,093 Cr, the second consecutive quarter of >75% YoY growth
• PAT grew 142.1% YoY to Rs.6,412 Cr; H1 PAT of Rs.11,881 Cr is already 85.9% of full FY26 PAT
• EBITDA margin expanded 930 bps YoY to 61.3%, the highest on record; zinc-lead segment margin up 1,250 bps to 45.3%
• Record Q2 mined metal of 271 kt (+5% YoY) and saleable metal of 264 kt (+7% YoY); silver volumes +20% YoY at 173 t
• Silver revenue grew 140.8% YoY to Rs.4,111 Cr at an 87.8% segment margin, contributing 43% of segment profit from 28% of segment revenue
• Finance costs fell 66% YoY to Rs.88 Cr; debt/equity improved to 0.21x from 0.37x
• H1 operating cash flow of Rs.13,287 Cr (+141.6% YoY) and free cash flow of Rs.10,135 Cr (+237.5% YoY)
• Net worth rose 33% in six months to Rs.29,966 Cr; H1 production on track at 46.9-47.6% of full-year targets

Risk Factors

• Power and fuel cost rose 13.6% YoY with e-auction coal premiums at 59% in August and higher imported coal costs
• Other expenses rose 34.2% YoY and mining royalty rose 54.2% YoY, tracking input cost inflation
• Silver average price declined QoQ to ~$59-61/oz from $73.2 in Q1FY27; continued moderation would slow silver revenue growth
• Enforcement Directorate conducted a FEMA search operation from June 1-3, 2026; no further communication received to date