Hindustan Zinc Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Hindustan Zinc Ltd filed with BSE on 28 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Hindustan Zinc reported record quarterly EBITDA of Rs 8,074 crores and net profit of Rs 5,469 crores for Q1 FY27, with revenue of Rs 13,747 crores up 77% year-on-year. Management attributed the performance to higher metal production, the lowest-ever quarterly zinc cost of production since underground transition, and strong silver contribution to profitability. The company also announced a leadership transition, with Amarendu Prakash set to take over as CEO from Arun Misra effective August 1, 2026.
Numbers mentioned
EBITDA: INR8,074 crores (Q1 FY27)
p. 5
“During the quarter, we reported highest ever EBITDA of INR8,074 crores, resulting into a record net profit of INR5,469 crores, making a new milestone for the company.”
Arun Misra, page 5 of the filed PDF · View the filing
Net profit: INR5,469 crores (Q1 FY27)
p. 6
“we delivered our record quarterly net profit of INR5,469 crores, up 145% year-on-year.”
Amit Gupta, page 6 of the filed PDF · View the filing
Revenue from operations: INR13,747 crores (Q1 FY27)
p. 6
“we delivered our highest ever quarterly revenue from operations of INR13,747 crores, up 77% year-on-year”
Amit Gupta, page 6 of the filed PDF · View the filing
EBITDA margin: 59% (Q1 FY27)
p. 6
“We have also delivered the highest-ever quarterly EBITDA of INR8,074 crores, up 109% year-on-year, with an industry-leading EBITDA margin of 59%.”
Amit Gupta, page 6 of the filed PDF · View the filing
Refined metal production: 260,000 tons (Q1 FY27)
p. 4
“alongside refined metal production of 260,000 tons, which was up 4% year-on-year.”
Arun Misra, page 4 of the filed PDF · View the filing
Mine metal production: 268,000 tons (Q1 FY27)
p. 4
“We delivered a strong start of the year with the highest-ever first quarter mine metal production of 268,000 tons for the fifth consecutive year”
Arun Misra, page 4 of the filed PDF · View the filing
Zinc cost of production excluding royalty: USD851 per ton (Q1 FY27)
p. 5
“we achieved the lowest quarterly zinc cost of production, excluding royalty, since underground transition to USD851 per ton, reflecting a decline of 16% year-on-year.”
Arun Misra, page 5 of the filed PDF · View the filing
Silver production: 149 tons (Q1 FY27)
p. 5
“We achieved 149 tons of silver production in line with the lead production and our silver portfolio continues to contribute 46% to overall profitability.”
Arun Misra, page 5 of the filed PDF · View the filing
Free cash flow pre growth capex: INR5,253 crores (Q1 FY27)
p. 6
“Our ability to generate strong free cash flow of INR5,253 crores pre growth capex, demonstrate the resilience of our business model, industry-leading cost competitiveness and disciplined”
Amit Gupta, page 6 of the filed PDF · View the filing
Net cash position: INR5,572 crores (Q1 FY27)
p. 7
“We ended this quarter with a net cash position of INR5,572 crores, providing significant financial flexibility to pursue value-accretive growth opportunities while maintaining an attractive shareholder return profile.”
Amit Gupta, page 7 of the filed PDF · View the filing
Interim dividend: INR11 per share (Q1 FY27)
p. 7
“during the quarter, the company paid its first interim dividend of INR11 per share, reaffirming our commitment to delivering sustainable shareholder returns.”
Amit Gupta, page 7 of the filed PDF · View the filing
Contribution to National Exchequer: approximately INR6,450 crores (Q1 FY27)
p. 7
“Hindustan Zinc contributed approximately INR6,450 crores to the National Exchequer through taxes, royalties, duties and other statutory earnings”
Amit Gupta, page 7 of the filed PDF · View the filing
Zinc average price: USD3,466 per ton (Q1 FY27)
p. 4
“Zinc averaged USD3,466 per ton, reaching a high of USD3,625 per ton, while lead averaged USD1,954 per ton.”
Arun Misra, page 4 of the filed PDF · View the filing
Silver average price: USD73 per troy ounce (Q1 FY27)
p. 4
“Silver prices moderated during the quarter to USD73 per troy ounce compared with the strong levels seen in the previous quarter”
Arun Misra, page 4 of the filed PDF · View the filing
Domestic coal linkage proportion: 36% (Q1 FY27)
p. 8
“36% compared to -- it was 54% last year, 64% in quarter 4.”
Arun Misra, page 8 of the filed PDF · View the filing
Revenue from concentrate sales: INR315 crores (Q1 FY27)
p. 8
“So, INR315 crores in the revenue from concentrate.”
Amit Gupta, page 8 of the filed PDF · View the filing
Fertilizer plant capex spent to date: Around INR500 crores (as of Q1 FY27)
p. 12
“Around INR500 crores we had already spent.”
Amit Gupta, page 12 of the filed PDF · View the filing
Growth project capex spent: INR800 crores (Q1 FY27)
p. 13
“during the quarter, we have spent around INR800 crores.”
Amit Gupta, page 13 of the filed PDF · View the filing
Hedge losses: INR200 crores (Q1 FY27)
p. 13
“So the hedge losses are to the tune of INR200 crores.”
Amit Gupta, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Mined metal production — 1.1 million tons · FY27
stated firmly by Arun Misra
p. 8
“So roughly, we have given a guidance of 1.1 million tons for the year, right? And we have done 260 KT just now.”
Arun Misra, page 8 of the filed PDF · View the filing
Growth project capex — USD500 million to USD600 million · FY27
stated firmly by Amit Gupta
p. 13
“So the guidance for the year is on the growth project is around USD500 million to USD600 million we are expecting.”
Amit Gupta, page 13 of the filed PDF · View the filing
Cost of production — 975 to 1,000
stated firmly by Amit Gupta
p. 12
“So during the quarter, our COP is broadly in line with the guidance we have given, which is 975 to 1,000, and the additional benefit is because of the by-product realization, which is higher than this.”
Amit Gupta, page 12 of the filed PDF · View the filing
Phosphoric acid plant commissioning — Q2 FY27
stated firmly by Arun Misra
p. 10
“No. So what will get commissioned in Q2 is the phosphoric acid portion of the of the fertilizer plant.”
Arun Misra, page 10 of the filed PDF · View the filing
Fertilizer plant commissioning — Q1 FY28
stated firmly by Arun Misra
p. 11
“Fertilizer plant should come in place by quarter 1 of next financial year.”
Arun Misra, page 11 of the filed PDF · View the filing
Tailings reprocessing plant zinc output — 30, 35 kt of zinc
stated as an aspiration by Arun Misra
p. 12
“For tailing recycling, we have just started the construction. So it will be another 24 months before the facility can be constructed. And we expect about 30, 35 kt of zinc to be produced out of that.”
Arun Misra, page 12 of the filed PDF · View the filing
Zinc and lead smelter expansion (~650KT capacity) board approval — Q3 FY27
stated conditionally by Arun Misra
p. 9
“we are estimating a time line of 36 months of construction period post approval by the board, which we expect by quarter 3 of this year, we will move for board approval.”
Arun Misra, page 9 of the filed PDF · View the filing
REE and Yttrium block production start — 2031-32
stated as an aspiration by Arun Misra
p. 11
“So that means maybe 2031-32 would be the first time the production will come to the market.”
Arun Misra, page 11 of the filed PDF · View the filing
Cost of production in second quarter — Q2 FY27
stated conditionally by Arun Misra
p. 13
“And if you produce more metal and more acid will be produced. And if the prices remain at current level, the cost is supposed to be better unless we are struck by higher input commodity prices, which is also a likelihood.”
Arun Misra, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed the rise to lower availability of cheaper linkage coal and higher cost imported coal, partly offset by more renewable power use.
Answered by Amit Gupta
Asked by Pallav Agarwal: Why did power and fuel costs rise sequentially despite lower metal production and better RE proportion?
p. 7
“So the power and fuel cost during the quarter has dincreased majorly due to our materialization of linkage coal, which is slightly lower due to the various reasons, including the mine conditions from where we take coal.”
Amit Gupta, page 7 of the filed PDF · View the filing
Management said the company still does not sell concentrate as a policy but liquidated old inferior-grade stock accumulated during mill stabilization to capture high prices.
Answered by Arun Misra
Asked by Pallav Agarwal: Is the company selling lead concentrate as a change in policy?
p. 8
“We still don't sell concentrate. We still have the same policy that we don't sell concentrate.”
Arun Misra, page 8 of the filed PDF · View the filing
Management reaffirmed the 1.1 million ton guidance, citing seasonal strength in Q2-Q3 and historically higher Q4 output.
Answered by Arun Misra
Asked by Suman Kumar: What is management's confidence on achieving the full-year production guidance, and would guidance be revised?
p. 8
“No, no. We have done 260 KT. Even on a straight line method, we are already at 1,040, right, and we have given a guidance of 1.1 million ton only.”
Arun Misra, page 8 of the filed PDF · View the filing
Management explained the omnibus approval process for related party transactions and described a new internal alarm mechanism triggered at 80% of approved value.
Answered by Arun Misra
Asked by Suman Kumar: Can management explain the SEBI observations on related party transactions mentioned in the notes to accounts?
p. 9
“Then that is what perhaps now -- internally, the SOP, we will do is at the 80% level, alarms will be generated, that we are about to cross 80% of the value approval.”
Arun Misra, page 9 of the filed PDF · View the filing
Management estimated capex around Rs 24,000-25,000 crores including mines, pending tendering, with construction of 36 months post board approval expected by Q3.
Answered by Arun Misra
Asked by Suman Kumar: What is the timeline and capex for the ~600+ KT zinc and lead smelter expansion under conceptualization?
p. 9
“So this capex outlay, we just can't -- because we are now going through the tendering process and maybe another 1 months' time, we would know exactly.”
Arun Misra, page 9 of the filed PDF · View the filing
Management said silver grades were better but volumes were locked in work-in-progress, and expects improvement in later quarters to meet the guidance.
Answered by Arun Misra
Asked by Manav Gogia: How should silver production be viewed against the 680 ton annual target given Q1 output of 149 tons?
p. 10
“Now going forward, typically, quarter 2, up till quarter 4, we ensure that the mine development is such will hit even better PPM ore for silver, and we maximize in quarter 4.”
Arun Misra, page 10 of the filed PDF · View the filing
Management disclosed open hedge positions for zinc and silver from prior periods and said no new hedging has been done this year given market volatility.
Answered by Amit Gupta
Asked by Manav Gogia: What hedges are currently open for FY27 and what is the hedging policy going forward?
p. 10
“So at this point of time, we have a 48 KT of zinc, which are open at the rate of USD3,162 per ton, and silver, 34 tons at the rate of 63 per ounce.”
Amit Gupta, page 10 of the filed PDF · View the filing
Management clarified that only the phosphoric acid portion will be commissioned in Q2, with the full fertilizer plant pending environmental clearance and expected by Q1 of the next fiscal year.
Answered by Arun Misra
Asked by Manav Gogia: What is the definitive timeline for the DAP fertilizer plant commissioning?
p. 10
“So it is the phosphoric acid plant that should be commissioned. And if you note that for the fertilizer plant, we are yet to complete the whole construction because the environment clearance and other regulatory approvals are pending.”
Arun Misra, page 10 of the filed PDF · View the filing
Management said it has no update to share as the matter rests with the government.
Answered by Arun Misra
Asked by Pratim Roy: Is there any update on reports of the Government of India selling its stake in Hindustan Zinc?
p. 11
“Yes, it is for the government to give the update. We really can't get any update on what government will do.”
Arun Misra, page 11 of the filed PDF · View the filing
Management said the block is at G2 exploration stage, with exploration expected to take 2-3 years and first production likely only around 2031-32.
Answered by Arun Misra
Asked by Anirudh Nagpal: What is the action plan and timeline for the newly won REE and Yttrium block in Karnataka?
p. 11
“Typically, it would take 2 years to 3 years for exploration, establishing the reserve resource base and then doing the mine plan.”
Arun Misra, page 11 of the filed PDF · View the filing
Management attributed the reduction to cost of production being in line with guidance plus additional benefit from higher byproduct realization.
Answered by Amit Gupta
Asked by Sumangal Nevatia: What is driving the USD50 per ton quarter-on-quarter cost reduction?
p. 12
“So during the quarter, our COP is broadly in line with the guidance we have given, which is 975 to 1,000, and the additional benefit is because of the by-product realization, which is higher than this.”
Amit Gupta, page 12 of the filed PDF · View the filing
Management said the plant will take about 24 months to construct, expects 30-35 kt of zinc output, and anticipates a ramp-up period of 6 to 8 months given limited precedent globally.
Answered by Arun Misra
Asked by Sumangal Nevatia: What is the expected recovery and ramp-up timeline for the tailings reprocessing plant?
p. 12
“Tailing reprocessing apart from in 1 mine in Australia, nobody has done. So of such capacity, I would expect it would have a ramp-up period of anywhere between 6 to 8 months.”
Arun Misra, page 12 of the filed PDF · View the filing
Management said costs should improve if metal production rises as guided and prices hold, but flagged the risk of higher input commodity prices offsetting gains.
Answered by Arun Misra
Asked by Pinakin: Given strong sulfuric acid prices, will cost of production net of byproduct realization fall further in Q2?
p. 13
“And if you produce more metal and more acid will be produced. And if the prices remain at current level, the cost is supposed to be better unless we are struck by higher input commodity prices, which is also a likelihood.”
Arun Misra, page 13 of the filed PDF · View the filing
Management confirmed sulfuric acid does not attract mineral royalty since it is not a mineral product, while other royalties are tied to LME price rather than revenue.
Answered by Arun Misra
Asked by Pinakin: Is the multi-quarter low in mineral royalty as a percentage of revenue due to sulfuric acid revenue not attracting royalty?
p. 13
“Sulfuric acid, there is no royalty as per law because it's not any mineral product.”
Arun Misra, page 13 of the filed PDF · View the filing
Risks flagged
Higher input commodity prices, particularly energy, could offset cost reduction benefits.
p. 5
“The reduction was driven by better grade, higher metal production, increased renewable power consumption and better by-product realization, partly offset by higher input commodity prices, especially energy prices in line with the geopolitical crisis globally.”
Arun Misra, page 5 of the filed PDF · View the filing
Higher input commodity prices could prevent further cost improvement in the second quarter.
p. 13
“unless we are struck by higher input commodity prices, which is also a likelihood.”
Arun Misra, page 13 of the filed PDF · View the filing
Near-term silver and base metal prices may remain volatile due to macroeconomic and geopolitical factors.
p. 4
“While near-term price movements may remain volatile, the medium-term outlook continues to be constructive, driven by structural demand from the energy transition and relatively constrained global supply growth.”
Arun Misra, page 4 of the filed PDF · View the filing
Global macroeconomic environment continues to be influenced by geopolitical developments and evolving trade policies.
p. 6
“The global macroeconomic environment continues to be influenced by geopolitical development, evolving trade policies and uneven economic growth.”
Amit Gupta, page 6 of the filed PDF · View the filing
Coal availability and mine conditions increased power and fuel costs.
p. 7
“So the power and fuel cost during the quarter has dincreased majorly due to our materialization of linkage coal, which is slightly lower due to the various reasons, including the mine conditions from where we take coal.”
Amit Gupta, page 7 of the filed PDF · View the filing
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