Vedanta-owned Hindustan Zinc’s Q1 profit falls 26 pc sequentially, revenue dips

Mumbai, July 18 Vedanta-owned Hindustan Zinc on Friday reported a sharp 25.6 per cent sequential drop in its consolidated net profit for the first quarter of the current financial year (Q1 FY26), with earnings falling to Rs 2,234 crore.

The company had posted a profit of Rs 3,002 crore in the previous quarter (Q4 FY25), according to its stock exchange filing.

On a year-on-year (YoY) basis, profit also declined by 4.7 per cent from Rs 2,345 crore in Q1 FY25.

The company’s revenue from operations also took a hit. It stood at Rs 7,771 crore in the June quarter, down 14.5 per cent compared to Rs 9,087 crore in the March quarter.

On a yearly basis, revenue declined by 4.4 per cent from Rs 8,130 crore, as per its filing.

The fall in revenue was mainly due to lower volumes and weaker prices of zinc and lead, although this was partly cushioned by stronger silver prices, favourable dollar movement, and improved realisations from by-products.

In its regulatory filing, Hindustan Zinc said that its EBITDA for the quarter was Rs 3,860 crore -- showing a 2 per cent decline from the same period previous year.

The fall was primarily driven by reduced volumes and softer metal prices. Despite this, the company maintained a strong EBITDA margin of around 50 per cent.

The company also highlighted a significant achievement -- the lowest zinc production cost in any first quarter since it transitioned to underground mining.

The cost stood at $1,010 per tonne, which is 9 per cent lower than the same quarter previous year.

This improvement was due to better metal grades, greater use of domestic coal and renewable energy, improved by-product revenue, and a decline in input costs.

However, lower production volumes partially offset these benefits. Earlier, on June 11, the Board of Directors had declared an interim dividend of Rs 10 per equity share for FY26, with June 17 as the record date.

On the renewable energy front, Hindustan Zinc said it is sourcing 530 MW of renewable power on a round-the-clock basis through a long-term arrangement with Serentica Renewables India Private Limited.

As part of this green energy initiative, the company has invested Rs 49 crore till June 2025.

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