Hindustan Zinc (500188) Q3 25/26 earnings summary

Executive summary

• Achieved record third-quarter and nine-month mined and refined metal production since underground transition, with operational discipline and lowest zinc cost of production in five years.

• 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.

• Sustainability leadership reinforced by top global ranking in S&P Global Corporate Sustainability Assessment and recognition for CSR initiatives.

• Strong market environment with buoyant commodity prices, especially zinc and silver, supporting robust financial and operational performance.

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

Financial highlights

• Record quarterly revenue of ₹10,980 crore, up 28% quarter-on-quarter and 27% year-over-year; nine-month revenue reached ₹27,300 crore.

• Highest-ever quarterly EBITDA of ₹6,087 crore, up 36% quarter-on-quarter and 34% year-over-year, with EBITDA margin at 55%.

• Profit after tax for the quarter surged 48% sequentially to ₹3,916 crore, a new record; nine-month PAT at ₹8,799 crore.

• Silver revenue up 83% year-over-year in Q3 FY26; zinc and lead revenues up 15% and 3% year-over-year, respectively.

• Net cash position of ₹329 crore at December 2025, reversing from net debt of ₹2,547 crore at September end.

Outlook and guidance

• Sustained zinc cost of production expected between $950-$1,000 per ton, with FY 2026 performance expected below guided levels.

• Silver production guidance for FY 2026 maintained at 680 ±10 tons, with Q4 expected to be strong due to operational improvements and favorable conditions.

• Renewable energy power mix targeted to reach 25% by year-end, 35%-40% in FY 2027, and 70% post-FY 2027, driving further 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.