Hindustan Zinc Limited Q4 FY2026 Results
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Overview
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Detailed Analysis
Sentiment
Positive
Executive Summary
Hindustan Zinc Q4 FY2026: Revenue ₹13,544 Cr (vs ₹9,087 Cr YoY), PAT ₹5,033 Cr (vs ₹3,003 Cr YoY)
In Q4 FY2026 Hindustan Zinc reported consolidated revenue from operations of ₹13,544 Cr and total income of ₹13,824 Cr for the quarter ended March 31, 2026. Consolidated net profit after tax was ₹5,033 Cr in Q4 FY2026 versus ₹3,003 Cr in Q4 FY2025, supported by higher metal (zinc/silver) sales and margins. Operating margin improved to 49% in Q4 FY2026 while finance costs declined versus Q4 FY2025, and the Board declared an interim dividend of ₹11 per share amounting to ₹4,648 Cr for FY2026-27. Management continues to deploy capital into renewable power (PDA3) with ₹278 Cr invested in FY2026...Revenue from operations (Q4 FY2026)
₹13,544 Crvs ₹9,087 Cr in Q4 FY2025
Total Income (Q4 FY2026)
₹13,824 Crvs ₹9,314 Cr in Q4 FY2025
Profit before tax (Q4 FY2026)
₹6,751 Crvs ₹3,782 Cr in Q4 FY2025
Net Profit (PAT) (Q4 FY2026)
₹5,033 Crvs ₹3,003 Cr in Q4 FY2025
EBIT/Operating margin (Q4 FY2026)
49%vs 42% in Q4 FY2025
Earnings Per Share - Basic (Q4 FY2026)
₹11.91 per sharevs ₹7.11 per share in Q4 FY2025
Mining royalty (Q4 FY2026)
₹1,710 Crvs ₹1,161 Cr in Q4 FY2025
Finance costs (Q4 FY2026)
₹187 Crvs ₹251 Cr in Q4 FY2025
Key Highlights
9
Zinc, Lead and Silver segment revenue was ₹12,672 Cr in Q4 FY2026 driven by higher zinc and silver realisations compared with ₹8,806 Cr in Q4 FY2025
Silver contributed ₹4,032 Cr of revenue in Q4 FY2026, up from ₹1,688 Cr in Q4 FY2025, reflecting strong silver sales and price realisations
Profit before interest, exceptional items and tax (PBIT) was ₹6,750 Cr in Q4 FY2026 versus ₹3,850 Cr in Q4 FY2025, indicating margin expansion from core operations
Total expenses increased to ₹7,073 Cr in Q4 FY2026 from ₹5,532 Cr in Q4 FY2025, led by higher mining royalty and other operating costs
Other income in Q4 FY2026 was ₹280 Cr compared with ₹227 Cr in Q4 FY2025, supporting overall profitability
Company invested ₹180 Cr in the quarter and ₹278 Cr in FY2026 into the PDA3 renewable power arrangement, reflecting a long‑term push into RTC renewable energy sourcing
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Key Highlights
9
Zinc, Lead and Silver segment revenue was ₹12,672 Cr in Q4 FY2026 driven by higher zinc and silver realisations compared with ₹8,806 Cr in Q4 FY2025
Silver contributed ₹4,032 Cr of revenue in Q4 FY2026, up from ₹1,688 Cr in Q4 FY2025, reflecting strong silver sales and price realisations
Profit before interest, exceptional items and tax (PBIT) was ₹6,750 Cr in Q4 FY2026 versus ₹3,850 Cr in Q4 FY2025, indicating margin expansion from core operations
Total expenses increased to ₹7,073 Cr in Q4 FY2026 from ₹5,532 Cr in Q4 FY2025, led by higher mining royalty and other operating costs
Other income in Q4 FY2026 was ₹280 Cr compared with ₹227 Cr in Q4 FY2025, supporting overall profitability
Company invested ₹180 Cr in the quarter and ₹278 Cr in FY2026 into the PDA3 renewable power arrangement, reflecting a long‑term push into RTC renewable energy sourcing
Exceptional items were nil in Q4 FY2026 while prior quarter had an exceptional item of ₹25 Cr in Q3 FY2026, and a ₹56 Cr provision recognised earlier was reversed during the year
Consolidated cash flow from operations for the year was robust at ₹17,008 Cr, supporting dividend payout and capex
Net debt composition shows long‑term borrowings (non‑current + current portion) of ₹4,614 Cr and short‑term borrowings of ₹3,638 Cr on the consolidated balance sheet as at March 31, 2026
Guidance & Outlook
5
Board declared first interim dividend of ₹11 per equity share for FY2026-27 amounting to ₹4,648 Cr, indicating confidence in near‑term cash generation
Company raised ₹1,400 Cr via private placement of NCDs on February 2, 2026 (₹420 Cr and ₹980 Cr tranches) and reported full utilisation of proceeds for working capital/operations
Management will monitor regulatory enquiries related to short seller allegations and has provided information to regulators while expecting no impact on financials as of date
Management continues investment in PDA3 renewable power with total invested ₹278 Cr as at March 31, 2026, signalling ongoing capex for long‑term power security
Operating margin of 49% in Q4 FY2026 suggests management expects continued strong operational profitability, subject to metal price trends and input costs
Risks & Concerns
6
Mining royalty rose to ₹1,710 Cr in Q4 FY2026 from ₹1,161 Cr in Q4 FY2025, creating pressure on cash costs and margins if royalties or taxes increase further
Other expenses increased to ₹3,570 Cr in Q4 FY2026 from ₹2,463 Cr in Q4 FY2025, indicating potential inflationary or volume‑related cost pressures
Company is subject to regulatory scrutiny following short seller allegations with information sought by regulators; while management sees no required adjustments, ongoing inquiries pose execution and reputational risk
Dependence on metal price realisations (noted large silver revenue jump to ₹4,032 Cr in Q4 FY2026) exposes earnings to commodity price volatility
Debt metrics
Exceptional one‑off incremental impact of new labour codes of ₹31 Cr for FY2026 indicates potential for further non‑recurring HR‑related costs as rules finalise
AI-generated analysis. May contain inaccuracies — verify against original sources.