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. This strong financial performance stands alongside disclosures of ongoing regulatory engagements, including SEBI observations on related-party transactions and an Enforcement Directorate (ED) search operation.

The Board of Directors approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, on July 24, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit & Risk Management Committee and subjected to a limited review by statutory auditors M/s MSKA & Associates LLP, who issued an unmodified opinion. 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.

Regulatory Disclosures and Investigations

The filing highlights ongoing interactions with regulatory authorities. During the current quarter, SEBI communicated observations on related-party transactions pertaining to approvals and disclosure aspects. These observations did not result in any financial penalty, restriction, or sanction. Corrective measures were taken and presented to the Audit & Risk Management Committee and the Board of Directors, which expressed satisfaction with the actions taken.

Additionally, the Enforcement Directorate conducted a search and seizure operation under the Foreign Exchange Management Act, 1999, at Hindustan Zinc premises from June 1, 2026, to June 3, 2026. The company extended full cooperation, providing all sought information and documentation. As of the filing date, no further communication had been received from the ED. Management maintains that allegations from a short-seller report published in the previous year are baseless and that no adjustments are required in the financial results.

Strategic Updates and Guidance

During the earnings call, management provided further clarity on strategic initiatives. The company sold 10,000 tons of lead concentrate, realizing approximately ₹315 crore in revenue, to capitalize on high LME prices and dispose of inferior-grade stock from earlier stabilization phases. Regarding hedging, the company holds open positions for 48 KT of zinc at $3,162 per ton and 34 tons of silver at $63 per ounce, resulting in hedge losses of approximately ₹200 crore for the quarter. No new hedging was undertaken in Q1FY27 due to market volatility.

Capital expenditure for growth projects is guided at $500 million to $600 million for FY27, with ₹800 crore spent in Q1FY27. Key projects include the 250 KTPA integrated zinc smelter at Debari, where mine development has started, and the tailings reprocessing plant, which has begun construction and is expected to take 24 months to complete. The hot acid leaching plant at Dariba and the phosphoric acid portion of the fertilizer plant at Chanderiya are on track for completion in Q2FY27, while the full fertilizer plant is targeted for Q1FY28 pending environmental clearances.

On the rare earth elements (REE) front, management noted that the newly acquired Gundlupet block is at G2 exploration level. It will take two to three years for exploration and resource estimation, followed by five to six years for mining and metallization, with first production expected around 2031-2032. The company also confirmed its dividend policy remains unchanged, mandating a minimum payout of 30% of profits and 5% of reserves.

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. The company ended the quarter with a net cash position of ₹5,572 crore, providing substantial flexibility for future investments.

Hindustan Zinc Limited company name appointed Amarendu Prakash as Chief Executive Officer and Whole-time Director, effective August 1, 2026. The Board of Directors approved the appointment on July 24, 2026, following a recommendation from the Nomination and Remuneration Committee. This leadership change brings a seasoned executive with over three decades of experience in the steel industry to helm the zinc major, potentially influencing its strategic direction and operational execution. The appointment remains subject to shareholder approval.

The Board meeting commenced at 12:00 noon and concluded at 2:05 p.m. IST on July 24, 2026. In addition to his executive role, Mr. Prakash will serve as a member of the Sustainability & ESG Committee, Stakeholders Relationship Committee, Committee of Directors, and Project Committee starting August 1, 2026. The company disclosed the outcome pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Mr. Prakash joins Hindustan Zinc from Steel Authority of India Limited (SAIL), where he served as Chairman & Managing Director. During his tenure at SAIL, he led the organization's transformation agenda, focusing on capacity expansion, operational excellence, digitalization, and sustainability initiatives. Prior to this role, he held key leadership positions, including Director (In-Charge) of the Burnpur and Bokaro Steel Plants. A Metallurgical Engineer from BIT Sindri, he joined SAIL in 1991.

The company confirmed that Mr. Prakash is not related to any director of Hindustan Zinc and is not debarred from holding office by SEBI or any other authority. These disclosures align with SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, as well as circulars from BSE and NSE regarding director appointments.

Updated Key Managerial Personnel

Effective August 1, 2026, the revised list of Key Managerial Personnel authorized to determine materiality and make disclosures under SEBI Listing Regulations includes:

• Amarendu Prakash, CEO & Whole-time Director
• Amit Gupta, Chief Financial Officer
• Aashhima V Khanna, Company Secretary & Compliance Officer

Strategic Implications

The appointment signals a shift in leadership strategy for Hindustan Zinc, leveraging Mr. Prakash’s extensive background in large-scale industrial operations and transformation. His experience in driving digitalization and sustainability at SAIL may inform Hindustan Zinc’s own ESG and operational goals. Shareholders will vote on the appointment at a future general meeting, finalizing the transition.