Hindustan Zinc Q1 Results: Net Profit Doubles to ₹5,469 Crore on Silver Boom
A silver price boom powered a record quarter, with net profit up 145% and the balance sheet much stronger.
Hindustan Zinc's Q1FY27 results show net profit up 145% to ₹5,469 crore for the quarter ended June 2026. Revenue rose 77% to ₹13,747 crore. A silver price boom did the heavy lifting: silver revenue jumped 169% to ₹3,839 crore. Zinc and lead held up too. The balance sheet also got much stronger, with debt-to-equity down to 0.31 from 1.19 a year ago.
Hindustan Zinc's Q1 results mark one of its strongest quarters in years. The Vedanta group firm rode two tailwinds at once: firm zinc demand and a real silver price boom. For the quarter ended June 2026, revenue rose sharply, net profit more than doubled, and margins jumped from a year ago.
The headline numbers
Here is how the quarter looked on a consolidated basis, per the company's exchange filing.
| Metric (₹ crore) | Q1FY27 | Q4FY26 | Q1FY26 |
|---|---|---|---|
| Revenue from operations | 13,747 | 13,544 | 7,771 |
| Total income | 14,063 | 13,824 | 8,050 |
| Total expenses | 6,749 | 7,073 | 5,065 |
| Profit before tax | 7,314 | 6,751 | 2,985 |
| Net profit | 5,469 | 5,033 | 2,234 |
| EPS (basic, in ₹) | 12.94 | 11.91 | 5.29 |
Revenue grew 77% year-on-year and 1.5% over the last quarter. Net profit rose 145% from a year ago and 8.7% from the prior quarter. Margins widened fast. Operating margin, on an EBIT basis, hit 52%, up from 38% a year ago. Net profit margin rose to 40%, from 29% a year ago.
Silver did the heavy lifting
The star this quarter was silver. Silver revenue came in at ₹3,839 crore, up 169% from ₹1,426 crore a year ago. It eased a bit from ₹4,032 crore last quarter. The profit picture is sharper still. Silver segment result stood at ₹3,327 crore, up 170% year-on-year. Silver alone now makes up close to half of total segment profit.
This fits a trend building for months. Silver drives 40 to 45% of the firm's EBIT. So its earnings move closely with silver prices. And those prices have soared. Silver crossed ₹2 lakh per kg in India around mid-December 2025 and neared $50 an ounce globally. The rally has many drivers: a tight supply crunch, a US Fed rate cut, a weaker dollar and rupee, and rising demand from solar power, electric vehicles and AI-linked electronics.
Roughly how much of Hindustan Zinc's EBIT now comes from silver?
Zinc and lead pulled their weight
This was not a one-metal story. The core zinc, lead and others segment posted revenue of ₹9,146 crore, up 49.6% year-on-year. Its segment result jumped 121.6% to ₹3,846 crore.
That is a sharp turnaround. A year ago, in Q1FY26, revenue had actually fallen 4.4%. Zinc prices had dropped 7% and lead prices 10% on the London Metal Exchange. Silver's 17% rise then only partly offset that weakness. This quarter shows the reverse, with both base metals now adding to growth. It also fits the wider run in metal stocks.
A much stronger balance sheet
The balance sheet tells an equally strong story. The debt-to-equity ratio improved sharply to 0.31, from 1.19 a year ago. That points to heavy debt cutting over the past year.
Net worth stood at ₹23,587 crore, more than double the ₹11,345 crore a year earlier. The interest coverage ratio improved to 53 times, from about 16 times a year ago. That reflects both stronger earnings and a much lighter debt load.
Dividend and the regulatory notes
The board had already declared an interim dividend of ₹11 per share on 24 April 2026. That works out to ₹4,648 crore, with a record date of 30 April 2026. So it came well before these results.
The filing also carried a few disclosures. On short-seller claims from last year against some Vedanta group firms, management repeated that the claims are baseless and all deals follow the law. SEBI shared observations on related-party approval and disclosure steps. These brought no penalty or restriction, and the board said it is satisfied with the fixes made. Separately, the Enforcement Directorate ran a search at the company's premises between 1 and 3 June 2026 under foreign exchange law. The company said it fully cooperated and has had no further word since.
What was Hindustan Zinc's net profit in Q1FY27?
How it compares, and what is next
Going in, analysts had expected profit to more than double on a 55 to 60% rise in sales. The actual numbers beat that on both counts. Ahead of the results, the stock was trading a touch lower, down about 0.6% at ₹527.75 on the BSE in early afternoon trade.
The quarter also builds on real momentum. In Q4FY26, net profit had already surged 68% year-on-year to ₹5,033 crore. So Q1FY27 extends a strong run rather than being a one-off spike. Market value stood at around ₹2.24 lakh crore, with the stock near 10 times its book value. Crisil also gave the firm a "Strong" ESG rating, with a score of 62, on 21 July 2026.
With margins near record highs, debt down sharply and silver showing no clear sign of cooling, this looks less like a fluke and more like a firm running on both core engines at once. Whether the pace holds through FY27 will depend on where silver and zinc prices go next.
Sources: Hindustan Zinc Q1FY27 consolidated results, as filed with the stock exchanges; company disclosures on dividend, SEBI observations and the Enforcement Directorate search; and Crisil's ESG rating (July 2026).