Hindustan Zinc Limited Q3 FY2026 Results
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Overview
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Detailed Analysis
Sentiment
Positive
Executive Summary
Hindustan Zinc Q3 FY26: Revenue ₹10,980 Cr (vs ₹8,614 Cr YoY), PAT ₹3,916 Cr (vs ₹2,678 Cr YoY)
In Q3 FY26 Hindustan Zinc reported consolidated Total Revenue from operations of ₹10,980 Cr and Total Income of ₹11,273 Cr, up from ₹8,614 Cr and ₹8,832 Cr respectively in Q3 FY25. Consolidated Net Profit rose to ₹3,916 Cr in Q3 FY26 from ₹2,678 Cr in Q3 FY25, while Profit Before Tax was ₹5,230 Cr. Management recognised exceptional items of ₹25 Cr (reversal versus a provision in prior periods) and disclosed an incremental one‑off impact of ₹31 Cr related to new labour codes as exceptional in the period. The company continues investments in renewable power (₹49 Cr infused in PDA3 during the...Total Revenue from operations (Consolidated)
₹10,980 Crvs ₹8,614 Cr in Q3 FY25
Total Income (Consolidated)
₹11,273 Crvs ₹8,832 Cr in Q3 FY25
Profit Before Tax (Consolidated)
₹5,230 Crvs ₹3,527 Cr in Q3 FY25
Net Profit (Consolidated)
₹3,916 Crvs ₹2,678 Cr in Q3 FY25
EBIT / Revenue (Operating margin)
47%vs 42% in Q3 FY25
Basic EPS (Consolidated)
₹9.27vs ₹6.34 in Q3 FY25
Net Worth (Consolidated)
₹17,189 Crvs ₹10,365 Cr in Q3 FY25
Debt/Net worth (Consolidated)
0.52vs 1.18 in Q3 FY25
Key Highlights
10
Zinc, Lead and Silver segment delivered Revenue of ₹10,608 Cr in Q3 FY26 compared with ₹8,297 Cr in Q3 FY25, driven by higher zinc/lead and silver realisations and volumes.
Silver revenue in the quarter was ₹2,676 Cr in Q3 FY26 versus ₹1,465 Cr in Q3 FY25, contributing materially to segment result growth (Silver segment result ₹2,285 Cr in Q3 FY26).
Profit before tax and exceptional items (EBIT) was ₹5,205 Cr in Q3 FY26 versus ₹3,527 Cr in Q3 FY25, reflecting improved margin and cost discipline.
Management reversed a previously recognised Environment & Health cess provision resulting in an exceptional item benefit of ₹25 Cr in Q3 FY26 (reversal vs provision disclosed earlier).
The Company recognised an incremental one‑off charge of ₹31 Cr as an exceptional item in Q3 FY26 for impact related to new Labour Codes (gratuity and leave encashment effect).
Other Comprehensive Loss was ₹(425) Cr in Q3 FY26 (driven by reclassification items of ₹(573) Cr and tax offsets), reducing Total Comprehensive Income to ₹3,491 Cr.
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Key Highlights
10
Zinc, Lead and Silver segment delivered Revenue of ₹10,608 Cr in Q3 FY26 compared with ₹8,297 Cr in Q3 FY25, driven by higher zinc/lead and silver realisations and volumes.
Silver revenue in the quarter was ₹2,676 Cr in Q3 FY26 versus ₹1,465 Cr in Q3 FY25, contributing materially to segment result growth (Silver segment result ₹2,285 Cr in Q3 FY26).
Profit before tax and exceptional items (EBIT) was ₹5,205 Cr in Q3 FY26 versus ₹3,527 Cr in Q3 FY25, reflecting improved margin and cost discipline.
Management reversed a previously recognised Environment & Health cess provision resulting in an exceptional item benefit of ₹25 Cr in Q3 FY26 (reversal vs provision disclosed earlier).
The Company recognised an incremental one‑off charge of ₹31 Cr as an exceptional item in Q3 FY26 for impact related to new Labour Codes (gratuity and leave encashment effect).
Other Comprehensive Loss was ₹(425) Cr in Q3 FY26 (driven by reclassification items of ₹(573) Cr and tax offsets), reducing Total Comprehensive Income to ₹3,491 Cr.
Mining royalty expense rose to ₹1,322 Cr in Q3 FY26 from ₹1,037 Cr in Q3 FY25, reflecting higher production value/volumes and impacting unit costs.
The company infused ₹49 Cr in PDA3 during Q3 FY26 (total investment in PDA3 ₹98 Cr as on Dec 31, 2025) to secure 530 MW renewable power on RTC basis, supporting long‑term energy cost stability.
Current Ratio stood at 1.52 times in Q3 FY26, improving versus 0.94 times in Q3 FY25, indicating better short‑term liquidity position.
Depreciation & amortisation was ₹947 Cr in Q3 FY26, stable versus ₹905 Cr in Q3 FY25, remaining a significant non‑cash charge impacting EBITDA conversion to PAT.
Guidance & Outlook
4
Company continues to execute its renewable power strategy via PDAs; total PDA3 investment stands at ₹98 Cr as on Dec 31, 2025 with ₹49 Cr added in Q3 FY26.
Management disclosed the impact of new Labour Codes as non‑recurring and will monitor final rules and clarifications, implying no further guidance change until rules are finalised.
Operating margin (EBIT/Revenue) at 47% in Q3 FY26 underpins management's commentary on sustained strong cash generation in near term.
Management has provided required information to regulators regarding short‑seller reports and continues to assess enquiries, signalling active engagement with authorities and no adjustments currently required to results.
Risks & Concerns
5
Short‑seller allegations published post June 30, 2025 remain under regulatory scrutiny and, while management deems them baseless, ongoing enquiries pose reputational and regulatory risk.
Net working capital is reported negative (note '**') and Long Term Debt to Working Capital is 1.94 times in Q3 FY26, flagging working capital stress sensitivity to market swings.
Other Comprehensive Loss of ₹(425) Cr in Q3 FY26 indicates market/translation or reclassification volatility that can depress reported comprehensive income despite PAT growth.
Mining royalty expense increased to ₹1,322 Cr in Q3 FY26 which could pressure unit margins if commodity prices soften or production mix changes unfavourably.
The ₹31 Cr exceptional charge for Labour Code impact, while labelled non‑recurring, highlights regulatory change risk that may yield further adjustments pending final rules.
AI-generated analysis. May contain inaccuracies — verify against original sources.