Hindustan Zinc shares fall on Q1 earnings, check details

Shares of Hindustan Zinc slipped over a per cent on Friday after the subsidiary of Vedanta reported its Q1 earnings. Net profit slipped 4.7% year-on-year for the first quarter of FY26, totalling Rs 2,234 crore. The company's revenue also fell by 4.4% due to "lower volumes and lower zinc and lead commodity prices partly offset by higher silver prices, stronger dollar, and higher by-product realisations." Despite these market challenges, Hindustan Zinc maintained a robust EBITDA margin of 50%, a testament to its focus on cost management and operational efficiency.

Hindustan Zinc shares fell 1% to Rs 431.45 against the previous close of Rs 437.05 on BSE. Market cap of the firm slipped to Rs 1.84 lakh crore. 

For the June quarter, expenses totalled Rs 5,065 crore, marking a 4% reduction from the previous year's Rs 5,284 crore. Following the earnings announcement, the company's shares fell by 0.9%, closing at Rs 433. Year-to-date, the stock has gained approximately 4%, although it has declined by 2% in the past two weeks.

In contrast, Hindustan Zinc experienced a strong March 2025 quarter, posting a 47% year-on-year surge in net profit to Rs 3,003 crore, driven by higher metal prices and strong volumes. Revenue in Q4 FY25 rose 20% year-on-year to Rs 9,087 crore, and EBITDA grew by 32% to Rs 4,816 crore.

The stable EBITDA margin is attributed to production efficiency, as Chief Financial Officer Sandeep Modi remarked: "Despite commodity headwinds and a weaker dollar, our focus on sustainable and efficient production enabled us to deliver a consistent EBITDA margin of 50%." This underscores the company's adaptability and resilience in challenging economic conditions.