Hindustan Zinc (500188) Q3 25/26 earnings summary

Executive summary

• Achieved record third-quarter and nine-month mined and refined metal production, with the lowest zinc cost of production in five years, reinforcing cost leadership and operational discipline.

• Silver production rose 10% quarter-on-quarter to 158 tons, contributing 44% of profits, and sustainability leadership was recognized with top global rankings and awards.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2025, were approved by the Board and reviewed by statutory auditors with an unmodified opinion.

• India’s strong macroeconomic environment and robust commodity prices, especially for zinc and silver, supported performance.

• Maintained industry-leading EBITDA margin of 55%, ROCE of 79%, and ROE of 86%.

Financial highlights

• Record quarterly revenue of ₹10,980 crore, up 28% quarter-on-quarter and 27% year-over-year; nine-month revenue reached ₹27,300 crore.

• Highest-ever quarterly EBITDA of ₹6,087 crore, up 36% quarter-on-quarter and 34% year-over-year, with a 55% EBITDA margin.

• Profit after tax surged 48% sequentially to ₹3,916 crore, with nine-month PAT at ₹8,799 crore.

• Cash & cash equivalents at ₹9,342 crore; net cash position of ₹329 crore at December 2025.

• Basic and diluted EPS for Q3 FY26 was ₹9.27, up from ₹6.34 in Q3 FY25.

Outlook and guidance

• Sustained zinc cost of production expected between $950-$1,000 per ton, with FY 2026 performance expected below guided levels.

• Silver production guidance for FY 2026 maintained at 680 ±10 tons, with Q4 expected to be strong due to operational improvements.

• Renewable energy power mix targeted to reach 35%-40% in FY 2027 and 70% after next year, with $20-$25 per ton cost savings expected.

• Management continues to monitor regulatory changes, especially regarding new Labour Codes, and will adjust accounting as needed.

• Committed to expanding refined metal capacity to 1,379 ktpa and mined metal to 1,510 ktpa, with significant investments planned.