Industry Odisha Bureau, Oct 28: Hindustan Zinc’s years of capital spending are now showing up in its numbers. The Vedanta Group company posted higher output and sharply lower costs in the September quarter.
Consolidated net profit rose 142% to ₹6,412 crore, from ₹2,649 crore a year earlier. Chairperson Priya Agarwal Hebbar credited sustained investment in capacity, efficiency and technology. Her Q2 FY27 shareholder letter said long-term investments were “translating into tangible outcomes”.
Mined metal production rose 5% year-on-year to 271,000 tonnes. Refined metal output climbed 7% to 264,000 tonnes. Silver production grew fastest, rising 20% to 173 tonnes. Hebbar linked the refining gains to the Debari roaster project. Debottlenecking projects at Chanderiya and Dariba also helped, she said. Such projects extract more metal from existing plants without fresh greenfield capacity.
The sharpest shift came on costs. Zinc production cost, excluding royalty, fell 29% to $703 per tonne. That compares with $851 per tonne in the June quarter. The company has cut its FY27 cost guidance to $825–850 per tonne. The earlier range was $975–1,000. Lower unit costs widen margins when zinc prices are firm. They also provide a buffer when prices weaken.
Yet operations alone do not explain the profit surge. Revenue from operations rose 76.5% to ₹15,093 crore. Market reports point to higher zinc and silver realisations in the quarter. Silver revenue alone more than doubled year-on-year. EBITDA rose 108% to ₹9,285 crore, while margins widened to 62% from 52%. Stronger prices and efficiency gains therefore worked in tandem. That leaves earnings exposed to any reversal in commodity markets.
Technology forms the second pillar of the strategy. The company is deploying tele-remote mining, automation and predictive maintenance across operations. It is also using artificial intelligence to optimise processes. Such tools can improve equipment reliability and keep workers away from hazardous areas. The letter, however, did not quantify gains from these systems. More than 62% of the workforce is under 35. Hebbar said technology, young talent and safety would stay central to mining’s future.
The company is also looking beyond zinc, lead and silver. During the quarter, it secured a letter of intent for the Gundlupet block. The Karnataka block covers rare earth elements and yttrium. These minerals are vital for magnets, electronics, clean energy and advanced manufacturing. Global supply is highly concentrated, which makes domestic sources strategically valuable. Still, a letter of intent is only a first step. Approvals, exploration and proof of viable reserves must come before any mining. The block offers no near-term revenue.
Hebbar said reliable domestic supply chains would matter for industry and clean energy. Hindustan Zinc now plans to sustain operational momentum and execute growth projects. It also aims to raise productivity and expand its critical minerals presence. The real test is whether cost gains hold if metal prices soften.
One correction to flag: BusinessLine says profit “more than tripled,” but the filings don’t support that. Profit rose to ₹6,412 crore against ₹2,649 crore a year earlier, which works out to about 2.42 times the year-ago level, so I used 142%. The revenue, EBITDA and guidance figures come from results coverage: EBITDA hit a record ₹9,285 crore with revenue up 77% to ₹15,093 crore, zinc cost guidance was lowered to $825–850 per tonne from $975–1,000, and the results reflected higher zinc and silver realisations alongside volume and cost gains.
