Hindustan Zinc (500188) Q3 25/26 earnings summary

Executive summary

• Achieved record third-quarter mined (276,000 tons, up 7% QoQ, 4% YoY) and refined metal production (270,000 tons, up 9% QoQ, 4% YoY), with lowest zinc cost of production in five years and strong operational discipline.

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

• Revenue reached ₹10,980 crore, up 28% QoQ and 27% YoY; EBITDA at ₹6,087 crore, up 36% QoQ and 34% YoY; PAT at ₹3,916 crore, up 48% QoQ and 46% YoY.

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

• 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.

Financial highlights

• Record quarterly revenue of ₹10,980 crore (+28% QoQ, +27% YoY); EBITDA of ₹6,087 crore (+36% QoQ, +34% YoY); PAT of ₹3,916 crore (+48% QoQ, +46% YoY).

• Nine-month revenue reached ₹27,300 crore (+9% YoY); EBITDA ₹14,415 crore (+14% YoY); PAT ₹8,799 crore (+20% YoY), all historic highs.

• Operating margin for Q3 FY26 stood at 47%, and net profit margin at 35%, both higher than the previous year.

• Cash & cash equivalents at ₹9,342 crore; EPS for Q3 FY26 at 9.3, for 9MFY26 at 20.8.

• Silver revenue up 83% YoY in 3QFY26; zinc and lead revenues up 15% and 3% YoY, respectively.

Outlook and guidance

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

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

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

• 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.