Hindustan Zinc Q1 FY27 Results (NSE: HINDZINC)
Signal: Margin expansion
The read
A stellar quarter: standalone revenue at ₹13,687 Cr (+77% YoY) and PAT at ₹5,425 Cr (+146% YoY) both hit new highs, powered by record silver prices and volumes, with operating margin at 52% — the 5th consecutive quarter of YoY margin expansion. The earnings surge is genuinely operational (EBIT grew 146% vs revenue 77%, demonstrating strong operating leverage), with debt/equity crashing to 0.31x from 1.19x a year ago. The company continues to trade at a steep discount to the industry P/E of 49x.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹13,687 Cr | 76.9% | 1.1% |
| EBIT | ₹7,801 Cr | 146.4% | |
| Net profit | ₹5,425 Cr | 146.1% | |
| EPS | ₹12.84 | 146.0% | |
| EBIT margin | 57% |
P&L walk
Consolidated revenue surged 76.9% YoY to ₹13,747 Cr on higher zinc & silver realisations and volumes; EBITDA up >2x on operating leverage and record silver contribution; net profit up 145% YoY.
Segments
The Zinc, Lead and Silver segment is the overwhelming driver, contributing 99.6% of revenue; within that, Silver revenue nearly trebled to ₹3,839 Cr (from ₹1,426 Cr YoY), with segment result of ₹3,327 Cr, driving nearly half of total segment profit. Wind Energy is marginal.
Key positives
- Revenue up 77% YoY to ₹13,687 Cr — highest ever quarterly revenue.
- PAT up 146% YoY to ₹5,425 Cr — more than doubled, driven by operating leverage and record silver contribution.
- Operating margin expanded 1400bps YoY to 52% — 5th consecutive quarter of YoY expansion.
- Debt/Equity improved to 0.31x from 1.19x YoY — marked balance sheet deleveraging.
- Interest Service Coverage Ratio at 52.66x vs 16.08x YoY — cash flow strength.
- Silver segment revenue nearly trebled to ₹3,839 Cr; segment profit of ₹3,327 Cr contributed 46% of total segment profit.
Key concerns
- Debtor turnover slowed to 27.08x from 48.88x YoY — implies receivables are growing faster than revenue.
- SEBI communicated observations on related party transactions (approvals and disclosures) — though no financial penalty, it requires monitoring.
- ED conducted search operations in June 2026; while cooperation was extended, regulatory overhang remains.
Research and educational content only. Not investment advice.