Hindustan Zinc Q1 profit more than doubles; appoints Amarendu Prakash as CEO-designate
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Hindustan Zinc Ltd on Friday reported a more than two-fold jump in consolidated net profit for the first quarter of FY27, supported by a sharp rise in zinc and silver prices, while also announcing the appointment of former Steel Authority of India Ltd (SAIL) chairman Amarendu Prakash as its CEO-designate.
Prakash will assume charge on August 1, succeeding Arun Misra, whose tenure as Chief Executive Officer ends on July 31.
The Vedanta Group company posted a consolidated net profit of ₹5,469 crore for the quarter ended June 30, compared with ₹2,234 crore in the corresponding period last year. Its net profit margin improved to 40% from 29% a year earlier, reflecting stronger realisations and operating performance.
Revenue from operations rose 77% year-on-year to ₹13,747 crore, driven primarily by higher prices of zinc and silver in the international market. The company's total expenses increased 33.2% to ₹6,749 crore during the quarter, although the rise was outpaced by revenue growth.
Hindustan Zinc reported its highest-ever quarterly EBITDA of ₹8,074 crore in the first quarter, up 109% year-on-year, with an industry-leading EBITDA margin of 59%. The company also announced an interim dividend of ₹11 per share, amounting to a payout of ₹4,648 crore. Its zinc cost of production declined 16% year-on-year to $851 per tonne, the lowest level since the transition to underground mining.
Arun Misra, Chief Executive Officer, said, “We have started the year on a strong note with our highest-ever first quarter mined metal production of 268 KT for the fifth consecutive year, reflecting the strength of our world-class assets and our relentless focus on operational excellence.”
The earnings were supported by a rally in base and precious metal prices.Higher international zinc and silver prices, along with improved operating performance and lower production costs, boosted earnings during the quarter.
Amit Gupta, Chief Financial Officer, said, “Hindustan Zinc delivered a strong quarter, with net profit surging 145% YoY to a record ₹ 5,469 crore, driven by the highest-ever quarterly EBITDA of ₹ 8,074 crore, up 109% YoY. This performance reflects our unwavering focus on operational excellence, cost competitiveness and disciplined financial management. Backed by a strong balance sheet and prudent capital allocation.”
India's largest integrated zinc producer, which accounts for nearly three-fourths of the domestic zinc market, also reported modest growth in production. Mined metal production increased 1% year-on-year to 268 kilotonnes during the quarter, while refined metal output rose 4% to 260 kilotonnes.
The appointment of Prakash marks a leadership transition at the company. He previously served as chairman and managing director of SAIL, India's largest state-owned steel producer, and is expected to take over the reins at a time when the company continues to benefit from favourable commodity prices and steady domestic demand.
Management said demand for zinc continues to be supported by infrastructure spending and the global energy transition, while the company remains focused on maintaining its position as one of the world's lowest-cost zinc producers.