# Hindustan Zinc Cuts Full-Year Cost Outlook After Record Q2 Revenue and Profit

- URL: https://stocks.freetheai.org/news/hindustan-zinc-cuts-full-year-cost-outlook-after-record-q2-revenue-and-profit-e0e25d
- Published: 2026-10-20T04:12:21Z
- Category: earnings; sentiment: bullish; impact: high
- Symbols: [NSE:HINDZINC](https://stocks.freetheai.org/symbols/NSE-HINDZINC)
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Hindustan Zinc Limited (NSE:HINDZINC) expects to produce zinc at lower costs this fiscal year following record-setting results in its September quarter. Consolidated revenue jumped 77% year-on-year to an all-time high of 15,093 crore, while net profit surged 142% to 6,412 crore. Earnings before interest, tax, depreciation, and amortization also reached a record 9,285 crore, more than doubling from the prior-year period.

Strong earnings were significantly aided by the company's silver segment, which made up 45% of total profitability as segment sales grew 141% on-year. Higher realizations on by-products, driven largely by global geopolitical disruptions, pushed zinc production costs down 29% year-on-year to $703 per tonne in the September quarter. For the full year, the Vedanta Group firm now projects zinc production costs between $825 and $850 per tonne, down from its earlier forecast of $975 to $1,000 per tonne.

Management warned that production costs could rise in the second half of the fiscal year. High energy prices added roughly $50 per tonne to expenses during the quarter, an impact that could increase in the December and March quarters. Additionally, the company anticipates that sulfuric acid prices will normalize and input cost inflation will weigh on second-half operating costs.

## Key points

- Hindustan Zinc's September quarter revenue rose 77% year-on-year to a record 15,093 crore, while net profit surged 142% to 6,412 crore.
- Full-year zinc production cost guidance was lowered to $825-$850 per tonne, down from the previous range of $975-$1,000 per tonne.
- The company's silver segment generated 45% of overall profitability, with sales up 141% compared to the prior year.
- Zinc production costs fell 29% year-on-year to $703 per tonne in the September quarter, aided by strong by-product realizations.
- High energy costs added $50 per tonne to expenses, and management expects second-half costs to rise due to input inflation.

## Questions and answers

### What were Hindustan Zinc's September quarter financial results?

Consolidated revenue surged 77% year-on-year to a record 15,093 crore, while net profit rose 142% to 6,412 crore. EBITDA more than doubled from the previous year to an all-time high of 9,285 crore.

### Why did Hindustan Zinc lower its zinc production cost forecast?

The company reduced its full-year cost estimate to $825-$850 per tonne due to strong by-product realizations linked to geopolitical disruptions. September quarter costs fell 29% year-on-year to $703 per tonne.

### What factors could increase Hindustan Zinc's costs in the second half?

Management expects higher input cost inflation, elevated energy expenses, and a potential decline in sulfuric acid prices to put upward pressure on production costs in the coming quarters.