Hindustan Zinc reported a record consolidated net profit of ₹5,469 crore for the first quarter of FY27, marking a 145% year-on-year increase. The surge was fueled by an industry-leading EBITDA of ₹8,074 crore, up 109% YoY, driven by higher metal prices, increased production, and lower costs. Revenue from operations reached ₹13,747 crore, up 77% YoY, with silver contributing significantly to profitability. The company also declared a first interim dividend of ₹11 per share.

The Board of Directors approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, on July 24, 2026. The results were reviewed by the Audit & Risk Management Committee and subjected to a limited review by statutory auditors M/s MSKA & Associates LLP. In a significant leadership update, the Board appointed Amarendu Prakash as Chief Executive Officer and Whole-time Director, effective August 01, 2026. Amit Gupta assumed the role of Chief Financial Officer on June 01, 2026.

Q1FY27 Financial Performance

Segment-Wise Revenue Breakdown

Silver emerged as the key growth driver, with revenue rising to ₹3,839 crore in Q1FY27 from ₹1,427 crore in Q1FY26, a 169% increase. Zinc revenue stood at ₹7,304 crore, up 48% YoY, while lead revenue was ₹1,086 crore, up 25% YoY. Other metals contributed ₹1,518 crore.

Operational Highlights and Leadership Changes

Mined metal production reached a record 268 KT for the fifth consecutive year, while refined metal production stood at 260 KT, up 4% YoY. Zinc cost of production excluding royalty fell to $851 per tonne, a 16% improvement YoY. The company secured a mining lease for the Gundlupet rare earth elements and Yttrium Block in Karnataka. On the leadership front, Amarendu Prakash, former Chairman & Managing Director of SAIL, joins as CEO, bringing over three decades of experience in India's steel sector. Amit Gupta, a Chartered Accountant with extensive experience in the Vedanta Group, takes over as CFO.

What the Numbers Show

The disproportionate growth in net profit (145%) compared to revenue growth (77%) indicates significant operating leverage and margin expansion. This divergence is largely attributable to the high-margin contribution from silver sales, which grew nearly 169% year-on-year. Furthermore, the debt-equity ratio improved to 0.31 times from 1.19 times in the prior year, signaling a stronger balance sheet position. The interest service coverage ratio jumped to 53.02 times from 16.25 times, underscoring enhanced financial stability and reduced leverage risk.

Hindustan Zinc has informed stock exchanges that its Board of Directors reviewed an administrative warning letter issued by the Securities and Exchange Board of India (SEBI). The disclosure, made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, addresses regulatory observations regarding inadvertent non-compliances by the company.

The Board meeting, held on July 24, 2026, commenced at 12:00 Noon and concluded at 02:05 p.m. IST. During the session, the Audit and Risk Management Committee and the Board considered the warning letter issued by SEBI vide letter no. HO/(163)2026-CFIDSEC2 dated April 30, 2026. This follows an earlier intimation sent to exchanges vide letter no. HZL/2026-27/SECY/20 dated May 01, 2026.

The committee and the Board were apprised of the background and circumstances surrounding the observations made by SEBI. Upon review, they noted that the identified non-compliances were inadvertent in nature. The Board reaffirmed the company's commitment to maintaining high standards of corporate governance and regulatory compliance.

Corrective Actions and Governance

The Board further reviewed the corrective measures undertaken by Hindustan Zinc to address the observations contained in SEBI's letter. The committee and the Board expressed satisfaction with the actions taken. The warning letter was placed before the Committee and the Board in accordance with SEBI's directions.

The intimation was signed by Aashhima V Khanna, Company Secretary & Compliance Officer of Hindustan Zinc Limited.