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Hindustan Zinc, India’s largest producer of silver, on Friday released its results for the April-June quarter of the ongoing financial year 2027. Its revenue from operations rose around 77% YoY to Rs 13,747 crore during the quarter under review, from Rs 7,771 crore reported in the same period last year. Total expenses increased over 33% YoY to Rs 6,749 crore during the quarter, which ended on June 30, 2026.

The Vedanta Group company’s net profit margin improved to 40% in the April-June quarter of FY27, from 37% in the previous quarter (Q4 FY26) and 29% in the year-ago period (Q1 FY26). Operating margin, meanwhile, increased to 52% during the quarter under review.

The metal major’s net worth also more than doubled on a YoY basis, rising around 108% to Rs 23,587 crore at the end of the June quarter of the ongoing financial year 2027. Its debt-to-equity ratio stood at 0.32 times, as against 1.19 times in Q1 FY26.

Nuvama Institutional Equities noted that Hindustan Zinc’s Q1 EBITDA of Rs 7,990 crore was nearly in line with estimates amid higher prices, partly offset by seasonally lower volume. . Refined Zinc cost of production (ex-royalty) stood lower at $851/ton (down $52/ton QoQ) amid benefits of higher sulphuric acid prices and rupee depreciation, it said.

Silver EBIT was down 2% sequentially due to lower volume and comprised 46% of EBIT in Q1, the brokerage added. “The tight supply market is likely to keep zinc prices relatively high while silver prices are likely to remain firm. We forecast a 3% volume CAGR for refined metal and a 4% volume CAGR for silver over FY26–28E. Higher prices and cost control shall drive EBITDA at 20% CAGR over FY26–28. The 250ktpa zinc smelter expansion shall be commissioned by Q2 FY29,” it added.

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Nuvama has a ‘Buy’ call on the shares of Hindustan Zinc with a target price of Rs 700 per share, implying around 32% upside potential from the stock’s previous closing price of Rs 531.95 apiece.

Also read | Hindustan Zinc names Amarendu Prakash as new CEO; quarterly profit more than doubles on strong metal prices

JM Financial said Hindustan Zinc’s Q1 EBITDA beat its estimate, driven by lower cost of production. “We remain positive on HZL given its industry-leading cost position, strong balance sheet and long-term growth pipeline,” it said.
The domestic brokerage maintained its ‘Buy’ call on the stock with a target price of Rs 660 apiece, implying 24% upside potential.

Motilal Oswal Financial Services said Hindustan Zinc delivered a slight beat on estimates, with revenue growth being driven by favorable commodity prices, higher by-product realization, and a stronger dollar.
EBITDA’s beat on forecast was primarily driven by favorable metal prices and lower cost of production. “Hindustan Zinc continues to report strong earnings, primarily driven by favorable metal pricing and better grades. The company continues to focus on increasing production output with tighter cost-control measures, which could lead to margin sustenance. The recently announced expansion plans are aligned with its long-term objective of doubling existing capacity and enhancing long-term earnings visibility. Although near-term earnings growth is capped due to limited capacity headroom, the LME/silver price inflation emerges as the key catalyst for incremental upside in the near term. We maintain our FY27/28 estimates and believe further price volatility could remain a potential risk or reward for earnings visibility,” it added.

Motilal Oswal however noted that the current valuation has priced in all the positive factors. It reiterated its ‘Neutral’ call on the stock with a target price of Rs 570 apiece.

Also read | Hindustan Zinc Q1 Results: Net profit spikes 145% YoY to Rs 5,469 crore, revenue jumps 77%

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)