Hindustan Zinc reported a strong performance in Q2FY26, with operating profit increasing by 7.8% year-on-year, driven by rising zinc and silver prices, lower costs, and slightly improved mined metal production. During this quarter, silver prices reached a record high of $48 per ounce, while zinc prices rose approximately 10% amid ongoing trade tensions and constrained supply.
Despite these positive developments, the company has revised its production guidance downward for both mined metal and silver following weaker outputs in the first half of FY26. Looking ahead, Hindustan Zinc plans to invest around $400 million in capital expenditure for growth in FY26. This investment will primarily focus on the 250 KTPA smelter project at Debari, valued at ₹12,000 crore and aimed for completion by Q2 FY29, along with the zinc tailings project, which has an expected cost of ₹3,800 crore and is targeted for Q4 FY28.
Analysts maintain a favorable outlook on Hindustan Zinc, highlighting stable metal prices, tightening global silver supply, and the increasing demand for zinc driven by India’s expanding steel production capacity. The company is also noted for its efficiency in managing zinc production costs, which remain near $1,000 per ton, positioning it well for future growth.
In light of the favorable pricing environment, revisions have been made to FY26 revenue and EBITDA forecasts, increasing them by 3.2% and 4.5%, respectively. For FY27, estimates have been raised by 5.5% for revenue and 6.3% for EBITDA. Analysts continue to value Hindustan Zinc at a 12x EV/EBITDA multiple based on the revised FY27 EBITDA estimate of ₹20,600 crore, an increase from the previous estimate of ₹19,400 crore, resulting in a new target price of ₹580, up from the prior target of ₹553.
Published on October 29, 2025.
