Hindustan Zinc Q2 FY27 Results (NSE: HINDZINC)

19 Oct 2026 · Analysis by Alpha Inflection

Signal: Steady quarter

The read

The operating inflection is broadening rather than fading: revenue accelerated to ₹15,093 Cr, +76.6% YoY, and operating margin expanded to 55% from 42%, the tenth consecutive quarter of margin expansion in the prior-results series; Silver contributed ₹3,609 Cr of segment result, while lower finance costs of ₹88 Cr further supported PAT of ₹6,412 Cr.

P&L walk

Revenue increased to ₹15,093 Cr, +76.6% YoY and +9.8% QoQ, while operating profit rose to ₹8,365 Cr, +130.4% YoY, with the margin reaching 55% from 42%; PAT rose to ₹6,412 Cr, +142.0%, supported by the operating improvement rather than exceptional items.

Segments

Silver was the principal growth engine: revenue rose to ₹4,111 Cr from ₹707 Cr YoY and segment result to ₹3,609 Cr from ₹572 Cr, while Zinc, Lead and others also lifted result to ₹4,720 Cr from ₹2,138 Cr.

Key positives

• Operating margin reached 55%, up 13pp YoY and 3pp QoQ, extending the margin-expansion sequence to ten quarters.
• Silver segment revenue increased to ₹4,111 Cr from ₹707 Cr YoY and segment result increased to ₹3,609 Cr from ₹572 Cr.
• Operating cash flow rose to ₹13,287 Cr in H1FY27 from ₹5,580 Cr in H1FY26, while net debt fell to ₹3,704 Cr from ₹7,933 Cr at March 31, 2026.
• Finance cost declined 66.0% YoY to ₹88 Cr, supporting the conversion of ₹8,572 Cr PBT into ₹6,412 Cr PAT.

Key concerns

• The revenue mix became materially more dependent on Silver, which contributed ₹4,111 Cr of quarterly revenue versus ₹707 Cr a year ago; durability of this contribution is a key trajectory variable.
• PPE declined to ₹19,671 Cr from ₹19,846 Cr at March 31, 2026 even as CWIP rose to ₹4,396 Cr, making execution and commissioning of growth projects important to monitor.

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