Hindustan Zinc margin reaches 58.41% after fourth straight quarterly rise
Revenue grew +77.22% YoY as expenses rose +45.71%; net profit rose +146.14%, while the near-term stock reaction was muted.
Filed 24 Jul 2026, 14:18 IST · Hindustan Zinc Ltd (HINDZINC)
Key takeaways
- Standalone operating margin widened 9.00 percentage points YoY to 58.41% as revenue grew faster than expenses.
- Standalone net profit rose +146.14% YoY to Rs 5,425 cr, with interest expense down -44.77% and the tax rate broadly unchanged.
- The stock rose +0.15% on the session, a muted move versus the +1.27% median absolute reaction after its eight recent results.
Price around the results
Standalone profit growth outpaced revenue in Q1FY27
Revenue rose +77.22% YoY to Rs 13,687 cr, while operating profit increased +109.49% to Rs 7,994 cr. Expenses grew +45.71%, slower than revenue, widening operating margin by 9.00 percentage points to 58.41%. Sequentially, revenue increased +1.48% and expenses fell -2.22%, lifting margin by 1.57 percentage points.
Lower interest supported profit, not a lower tax rate
Net profit rose +146.14% YoY, helped by a -44.77% decline in interest expense; depreciation was almost unchanged, rising +0.77%. The tax rate was 25.27%, only 0.03 percentage points above last year and 0.21 percentage points below the previous quarter, so tax did not materially flatter the YoY increase. Other income contributed 4.34% of pre-tax profit, keeping the result mainly tied to operating performance.
Margin has expanded for four consecutive quarters
Operating margin has risen from 49.41% in Q1FY26 to 51.92%, 54.98%, 56.84% and now 58.41% over the subsequent four quarters. Hindustan Zinc's margin was 39.69 percentage points above the 18.72% median for the 22 commodities peers that had reported. This places the company above all 22 reported peers on the supplied comparison.
Management outlined capacity additions and project timelines
Management said domestic zinc demand is expected to strengthen as domestic steel production capacity expands to 300 MTPA by 2030. The company said mined-metal capacity is being expanded from 1,180 KTPA to 1,510 KTPA across its mines. Management also said the Chanderiya fertilizer plant is expected to be completed by 2QFY27, while the zinc tailings reprocessing plant is targeted for completion in 4QFY28.
Market reaction was smaller than Hindustan Zinc's usual move
The stock recorded a +0.15% session return, despite a -0.59% opening gap, and the next-session return was -0.40%. That compares with a history of three rises and five falls across eight recent results, with a median absolute move of 1.27%, making this reaction smaller than its typical post-results move.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹13,687 cr | ₹13,488 cr | +1.48% | +77.22% |
| Other income | ₹315 cr | ₹280 cr | +12.50% | +11.70% |
| Expenses | ₹5,693 cr | ₹5,822 cr | -2.22% | +45.71% |
| Operating profit | ₹7,994 cr | ₹7,666 cr | +4.28% | +109.49% |
| Operating margin (%) | 58.41% | 56.84% | — | — |
| Interest | ₹132 cr | ₹187 cr | -29.41% | -44.77% |
| Depreciation | ₹918 cr | ₹1,053 cr | -12.82% | +0.77% |
| Profit before tax | ₹7,259 cr | ₹6,706 cr | +8.25% | +146.23% |
| Tax | ₹1,834 cr | ₹1,709 cr | +7.31% | +146.51% |
| Net profit | ₹5,425 cr | ₹4,997 cr | +8.57% | +146.14% |
| EPS (₹) | ₹12.84 | ₹11.83 | +8.54% | +145.98% |
Operating margin of 58.41% compares with a Commodities sector median of 18.72% across 22 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.15% | +0.58% |
| Next session | -0.40% | — |
Volume on the results session was 1.68× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Domestic zinc demand is expected to strengthen as domestic steel production capacity expands to 300 MTPA by 2030.
Expansion
- Mined metal capacity is being expanded from 1,180 KTPA to 1,510 KTPA across mines.
- The zinc tailings reprocessing plant is targeted for completion in 4QFY28.
- The fertilizer plant at Chanderiya is expected to be completed by 2QFY27.
What to watch
- Whether standalone operating margin holds above 58.41% next quarter.
- Progress toward management's stated mined-metal capacity expansion from 1,180 KTPA to 1,510 KTPA.
- Whether the Chanderiya fertilizer plant is reported complete by 2QFY27 and the zinc tailings reprocessing plant by 4QFY28.