HZL’s mined metal production amounted to 276 Kt in the quarter under review, remaining the highest ever for the third quarter. It was a 7% quarter-on-quarter growthProfit after tax (PAT) rose 48% quarter-on-quarter, while total revenue rose 28% sequentially.
The company reported in its filing with the stock exchanges that quarterly production costs were the lowest in five years at $940 per tonne, which is 5% better quarterly and 10% better year-over-year.
Earnings before interest, taxes, depreciation and amortization (EBITDA) also stood at a record Rs 6,087 crore, up 36% quarter-on-quarter and 34% year-on-year with an industry-leading EBITDA margin of 55%, up around 320 basis points quarter-on-quarter and 270 basis points year-on-year, the company filing said.
Silver productionSilver production of 158 tonnes was up 10% quarter-on-quarter, contributing 44% to profits, and was uniquely positioned to ride the silver wave.
The company said debottlenecking at the Chanderiya smelter has been successfully completed and refined zinc capacity has increased by 21 Ktpa, including the debottlenecking of the Dariba smelter previously commissioned.
The company was declared the successful bidder for the Tungsten Block in Balepalyam, Andhra Pradesh, delivering superior wealth creation for shareholders with a return of 5x of Nifty 100 and 2.4x of Nifty Metal return.
What should investors do?
International brokerage HSBC has upgraded the stock to Buy from Hold and raised the price target to Rs 750 per share, implying an upside of 14%.
HSBC said it has incorporated updated LME price forecasts for zinc and silver, increasing assumptions for the 2026-2028 financial year by approximately 5-23%. This led to a 12 to 20% increase in EBITDA estimates for the 2027-2028 financial year. The brokerage now values Hindustan Zinc at 11x FY27E EV/EBITDA, up from 9.5x previously, putting it at the top end of its five-year trading range of 5–11x. The valuation reflects the company’s strong balance sheet and stable to improving outlook for LME zinc and silver prices. “We see further upside profit potential from spot zinc and silver prices on LME,” HSBC said.
Total outstanding loans as on December 31, 2025 stood at Rs 9,013 crore. Net cash flow stood at Rs 329 crore as on December 31, 2025, compared to a net debt position of Rs 2,547 crore as on September 30, 2025.
The company said it had contributed over Rs 13,000 crore to the national exchequer during the nine months. This includes the contribution to the state exchequer of Rajasthan of over Rs 4,000 crore, including mining royalties.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)
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