1. Opening Hook
When most metal companies were busy blaming China, geopolitics, or “temporary volatility,” Hindustan Zinc casually dropped its best quarter ever. No excuses. No sob stories. Just record numbers and a lot of chest-thumping about silver.
While the rest of the commodity universe debated whether the cycle was peaking, HZL decided to peak harder. Zinc costs hit a five-year low, silver prices went vertical, and EBITDA margins touched levels that make FMCG CEOs uncomfortable.
Management sounded less like miners and more like hedge fund managers who timed the cycle perfectly. Of course, they’ll say it’s “structural excellence” and “operational discipline.” Maybe it is. Maybe silver just saved the day.
Either way, this concall wasn’t boring. Read on—because the real fun starts once we decode what’s driving these numbers… and what could quietly go wrong later.
2. At a Glance
- Revenue ₹10,980 Cr – Up 27% YoY: Commodity cycle said “hello” and never left.
- EBITDA ₹6,087 Cr – Up 34% YoY: Margins so fat they need ESG approval.
- PAT ₹3,916 Cr – Up 46% YoY: Silver decided to do the heavy lifting.
- EBITDA Margin 55% – Mining or SaaS? Hard to tell this quarter.
- Zinc COP $940/MT – Five-year low: Costs finally obeyed management slides.
- Silver Prices +74% YoY – Luck met leverage, sparks flew.
3. Management’s Key Commentary
“This quarter marks our best-ever operational
and financial performance.”
(Translation: Please don’t compare us to last year ever again 😏)
“Silver contributed 44% to overall profits.”
(Translation: Thank you solar panels, EVs, and speculative investors.)
“We achieved five-year lowest zinc cost of production.”
(Translation: Coal prices behaved, and by-products finally paid rent.)
“Our balance sheet remains robust with ₹9,342 crore cash.”
(Translation: Dividends are safe. Very safe 😌)
“We are progressing well on capacity expansion and tailings reprocessing.”
(Translation: Capex is coming, don’t get too comfortable.)
“India’s demand outlook for zinc and silver remains strong.”
(Translation: As long as steel and solar keep breathing.)
4. Numbers Decoded
| Metric | Q3FY26 | YoY Change | Decoded Take |
|---|---|---|---|
| Revenue | ₹10,980 Cr | +27% | Price + volume + silver jackpot |
| EBITDA | ₹6,087 Cr | +34% | Costs collapsed faster than bears |
| EBITDA Margin | 55% | +270 bps | Rare air, don’t assume permanence |
| PAT | ₹3,916 Cr | +46% | Operating leverage on steroids |
| Zinc COP | $940/MT | -10% | Cycle-friendly, execution helped |
| Silver Price | $54.7/oz | +74% | This did the real magic |
One-liner: Strip out silver and margins still look great—but not
