Hindustan Zinc’s Q1 Profit Slumps 25.6% Sequentially; Revenue Falls by Over 14% as Commodities Weigh

Vedanta Group’s Hindustan Zinc posted a notable decline in its financial performance for the first quarter of the current fiscal year (Q1 FY26), with its consolidated net profit slipping by 25.6% quarter-on-quarter to ₹2,234 crore. The company had reported a profit of ₹3,002 crore in the fourth quarter of FY25.

Year on year (YoY), the net profit of the company also declined by 4.7% from ₹2,345 crore reported in Q1 FY25, its stock exchange filing said.

Revenue from operations declined to ₹7,771 crore during the June quarter. Sequentially that was a 14.5% decline from the previous quarter's ₹9,087 crore. It declined by 4.4% from the same period last year at ₹8,130 crore.

The decline in revenue was caused by lower volumes of sales and softer market prices for lead and zinc. But stronger silver prices, favorable movement of the forex, and better by-product realisations cushioned the impact.

Hindustan Zinc's EBITDA was at ₹3,860 crore, a marginal 2% year-on-year decrease. Decline was primarily caused by weaker prices and lower production, although the company was able to sustain an EBITDA margin of close to 50%.

A major operational achievement was the company recording its lowest-first-quarter-ever cost of producing zinc after transitioning fully to underground mining. The cost dropped to $1,010 per tonne — 9% lower than last year's same period.

This cost effectiveness was spurred by increased metal grades, increased utilization of local coal and renewable power, more by-product income, and lower input expenditures. But some of these benefits were dampened by lower aggregate production levels.

In the earlier part of this year, on June 11, the board of Hindustan Zinc declared an interim dividend of ₹10 per equity share for FY26 with the record date being June 17.

On the sustainability side, the company announced procuring 530 MW of round-the-clock renewable power under a long-term contract with Serentica Renewables India Private Limited. Under this, it has made an investment of ₹49 crore till June 2025.