Hindustan Zinc Ltd delivered its strongest quarterly performance on record, posting a net profit of ₹3,916 crore for the three months ended December 31, 2024. The Vedanta Group subsidiary's profit surge of 46% year-on-year was primarily driven by rallying silver prices and improved operational efficiency across its mining operations.

Financial Performance Highlights

The company's financial metrics demonstrated robust growth across key parameters during Q3 FY26:

*Calculated based on reported growth percentages

Silver emerged as the primary profit driver, contributing approximately 44% of the company's total profit during the quarter. The precious metal's average price reached $54.73 per troy ounce, representing a substantial 74% increase compared to the same period last year.

Operational Excellence and Cost Management

Hindustan Zinc achieved significant operational improvements that enhanced profitability beyond favorable commodity pricing. The company recorded its lowest zinc production cost in five years at $940.00 per tonne, down sharply from $1,041.00 per tonne in the corresponding quarter of the previous year.

The company noted that every $25.00 per tonne movement in production costs results in a ₹210-230 crore impact on consolidated EBITDA, highlighting the significance of these cost improvements.

Strong Balance Sheet Recovery

The exceptional quarterly performance enabled Hindustan Zinc to return to a net-cash position after recent quarters of net-debt following significant dividend payouts. The company's financial position improved dramatically:

Management Commentary and Outlook

Arun Misra, Chief Executive Officer, emphasized the quarter's record-breaking nature, stating that the results reflected "operational excellence and strong fundamentals with the company achieving its highest-ever third quarter metal production and five-year lowest quarterly zinc cost of production."

The company maintained its guidance of 680 tonnes of silver production for FY26, despite producing 451 tonnes during the first nine months ending December 31, 2024. This translates to an average of 150 tonnes per quarter, requiring 229 tonnes of silver production in the final quarter to meet annual targets.

Market Performance Drivers

Silver prices reached exceptional levels during the quarter, with December recording an average price of $64.34 per ounce. While silver prices surged, zinc and lead maintained their elevated price levels, providing stable revenue streams from the company's diversified metal portfolio. The combination of favorable pricing and operational efficiency improvements created significant operating leverage, resulting in EBITDA exceeding ₹6,000 crore and surpassing market expectations.

Hindustan Oil Exploration Company Limited has issued a Bank Guarantee of ₹15.12 crores following a directive from the Madras High Court in connection with an ongoing enforcement petition matter. The development represents the latest update in a litigation case that has been ongoing since 2020.

Court Proceedings and Directive

The Madras High Court dismissed an application filed by Hardy Exploration & Production (India) Inc. (HEPI) on October 28, 2025, which sought interim relief related to the ongoing matter before the Gujarat High Court. However, the court instructed the company to furnish a Bank Guarantee as an interim arrangement.

Background of the Litigation

The enforcement petition stems from a foreign arbitration award dated February 28, 2020, filed by Hardy Exploration & Production (India) Inc. before the Gujarat High Court. The company has been providing regular updates on this matter through multiple intimations since August 2020, with the most recent updates in April and September 2023.

The Bank Guarantee amount corresponds to the previously disclosed claim of USD 1.16 million with interest, which has been consistently reported as a contingent liability in the company's audited financial statements since FY 2020-21.

Impact Assessment

The company has clarified that these developments are procedural and interim in nature, emphasizing that they do not materially impact the company's operations or financial performance. The final liability remains subject to the outcome of the matter pending before the Gujarat High Court.

Regulatory Compliance

The update was provided under Regulation 30 of the SEBI (LODR) Regulations, 2015, continuing the company's practice of keeping stakeholders informed about significant litigation matters. The communication was addressed to both the National Stock Exchange of India Ltd. and BSE Limited on January 19, 2026.