Hindustan Zinc (500188) Q3 25/26 earnings summary

Executive summary

• Achieved record third-quarter and nine-month mined (276,000 tons) and refined metal production (270,000 tons), with operational discipline and lowest zinc cost of production in five years; silver production up 10% sequentially to 158 tons.

• Sustainability leadership reinforced by top global ranking in S&P Global Corporate Sustainability Assessment and recognition for CSR initiatives.

• Robust market environment in India with strong GDP growth, manufacturing PMI above 56, and buoyant commodity prices, especially zinc and silver.

• 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.

• Strategic projects underway, including debottlenecking at smelters, groundwork for new zinc smelter and tailings reprocessing plant, and expansion into critical minerals.

Financial highlights

• Record quarterly revenue of ₹10,980 crore, up 28% quarter-on-quarter and 27% year-over-year; nine-month revenue at ₹27,300 crore, up 9% year-over-year.

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

• Profit after tax surged 48% sequentially to ₹3,916 crore, a new record; nine-month PAT at ₹8,799 crore, up 20% year-over-year.

• Free cash flow before growth CapEx for the quarter at ₹3,413 crore; net cash position of ₹329 crore at December 2025 end.

• 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 annually; silver production guidance for FY 2026 maintained at 680 ±10 tons.

• 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.

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

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

• Hedging strategy to continue at 10%-20% of volume for both zinc and silver.