Hindustan Zinc Ltd (HINDZINC)
🎯 Key Takeaways
- Hindustan Zinc is in a mature, cash-generative phase with strong profitability and stable growth, operating as a dominant player in India's non-ferrous metals sector. Management is focused on capital efficiency and shareholder returns, supported by robust margins and high returns on capital.
- Revenue grew 1.5% QoQ to ₹13,747 in Q1FY27.
- ⚠️ 1) Vedanta's 50.1% ownership covenant, while routine, creates structural overhang concerns if refinancing or market conditions shift. 2) High ROE and
- Market Cap
- ₹2.39 L Cr
- P/E Ratio
- 14.0
- P/B Ratio
- 10.56
- ROE
- 75.4%
- ROCE
- 76.5%
- Debt/Equity
- 0.36
- Div Yield
- 3.71%
- Promoter
- 60.7%
📖 The Story
Hindustan Zinc is in a mature, cash-generative phase with strong profitability and stable growth, operating as a dominant player in India's non-ferrous metals sector. Management is focused on capital efficiency and shareholder returns, supported by robust margins and high returns on capital. The company benefits from strategic control by Vedanta, which ensures long-term capital backing despite encumbrances on shareholding.
📰 What's Happening
Recent filings indicate routine procedural updates, including Vedanta's ₹2,000 crore debenture issuance tied to a 50.1% ownership covenant to protect debt holders, and an upcoming investor meet scheduled for September 28, 2026. The company also received an ESG rating of 67.76 from Niche99, reinforcing its sustainability credentials. There were no new business announcements or capex plans disclosed in the latest filings.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 8,549 | 10,980 | 13,544 | 13,747 |
| Operating Profit | 3,563 | 5,107 | 6,658 | 7,130 |
| OPM % | 41.7% | 46.5% | 49.2% | 51.9% |
| Net Profit | 2,649 | 3,916 | 5,033 | 5,469 |
| EPS | ₹6.27 | ₹9.27 | ₹11.91 | ₹12.94 |
Operating revenue and profit have shown consistent quarter-on-quarter growth, with revenue rising from ₹8,549 crore in September 2025 to ₹13,747 crore in June 2026, and net profit increasing from ₹2,649 crore to ₹5,469 crore over the same period. Operating margins expanded from 41.7% to 51.9%, indicating strong cost control and pricing power. EPS grew from ₹6.27 to ₹12.94, reflecting improved profitability and share buyback activity.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance in the latest filings, but the consistent margin expansion and rising cash flows suggest confidence in sustained performance. The focus remains on operational efficiency and capital allocation discipline, with no announced expansion plans or new product lines in the recent disclosures.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 845 | 845 | 845 | 845 |
| Reserves | 12,481 | 6,775 | 21,784 | 12,852 |
| Borrowings | 10,967 | 14,004 | 8,252 | 11,172 |
| Total Liabilities | 34,490 | 32,552 | 42,370 | 35,595 |
| Fixed Assets | 18,485 | 17,553 | 19,937 | 19,089 |
| Investments | 9,972 | 8,438 | 14,468 | 8,720 |
| Total Assets | 34,490 | 32,552 | 42,370 | 35,595 |
The balance sheet shows a healthy equity base with reserves growing from ₹12,481 crore to ₹21,784 crore, while net borrowings remain low and stable at ₹8,252 crore. Total assets have increased steadily, indicating capital investment is being funded through retained earnings rather than aggressive debt expansion, supporting financial resilience.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +17,008 |
| Investing | -8,906 |
| Financing | -7,901 |
| Net Cash Flow | +201 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 61.8% | 61.8% | 60.7% | 60.7% |
| FII | 1.3% | 1.5% | 2.4% | 2.2% |
| DII | 4.9% | 4.7% | 4.8% | 5.0% |
| Public | 3.3% | 3.2% | 3.4% | 3.5% |
| # Shareholders | 7,99,768 | 7,93,882 | 8,97,257 | 9,18,245 |
Promoter holding remains stable around 60.71%, with slight increases in FII and DII participation over recent quarters, suggesting growing institutional confidence. The number of shareholders has risen, indicating broader retail participation. No significant stake sales or pledges beyond routine encumbrances tied to Vedanta's debt covenants were disclosed.
⚖️ Peer Comparison — Non Ferrous Metals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| HINDZINC | 2.39 L Cr | 14.0 | 76.5% | — | 0.36 |
| HINDALCO | 2.12 L Cr | 12.8 | 11.1% | — | 0.71 |
| VAML | 1.61 L Cr | — | — | — | -0.81 |
| VEDL | 1.01 L Cr | 5.1 | 27.0% | — | 0.65 |
| NATIONALUM | 62,868 | 9.3 | 42.2% | — | 0.00 |
| HINDCOPPER | 45,716 | 40.3 | 44.4% | — | 0.03 |
| GRAVITA | 10,687 | 26.9 | 21.0% | — | 0.14 |
| JAINREC | 10,097 | 27.5 | 20.9% | — | 0.81 |
| PRECWIRE | 8,984 | — | — | — | 0.14 |
| KSHINTL | 6,781 | 48.7 | 33.9% | — | 1.21 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Vedanta's 50.1% ownership covenant, while routine, creates structural overhang concerns if refinancing or market conditions shift. 2) High ROE and margins are partly driven by non-recurring financial optimizations, which may not be sustainable. 3) Commodity price volatility in zinc and silver could pressure margins despite current strength.
📋 Recent Filings
- 🔴 Insider Trading2026-10-01Vedanta Limited disclosed a ₹2,000 crore debenture issuance linked to Hindustan Zinc, imposing a covenant that it must retain 50.1% ownership and cont…
- 🔴 Insider Trading2026-10-01Axis Trustee Services Limited, acting as debenture trustee for Vedanta's ₹3,500 crore non-convertible debentures, disclosed that encumbrances on Hindu…
- 🔴 Insider Trading2026-10-01Vedanta Limited disclosed that it created an encumbrance on 50.10% of Hindustan Zinc's share capital through a September 28, 2026 pledge to secure deb…
- Announcement2026-09-28Hindustan Zinc Ltd announced that its trading window will close on October 1, 2026, for all designated persons and their immediate relatives, remainin…
- 🔴 Announcement2026-09-22Hindustan Zinc announced its upcoming investor meet schedule on September 28, 2026, featuring a virtual session at Arihant Capital's Bharat Connect Co…
- 🔴 Announcement2026-09-18Hindustan Zinc announced an independent ESG rating of 67.76 from Niche99, classifying it as a 'Leader' in environmental, social, and governance perfor…
- 🟡 voting results2026-09-16Hindustan Zinc Limited issued a postal ballot notice on September 9, 2026, seeking shareholder approval via remote e-voting for two key appointments: …
- 🔴 Announcement2026-09-09Hindustan Zinc Limited announced its schedule of analyst and institutional investor meetings for September 2026, including a Jefferies conference on S…
- 🔴 Announcement2026-09-09Hindustan Zinc announced a six-year contract with MFL India to deploy 30 electric trucks for concentrate transport from Rampura Agucha mine, advancing…
- 🔴 Announcement2026-09-03Hindustan Zinc announced that the Government of Karnataka issued a Letter of Intent to grant a mining lease for the Gundlupet REE and Yttrium Block to…
🧠 Analyst's Read
Hindustan Zinc remains a cash-rich, high-margin business with strong governance and institutional backing, but its performance is closely tied to Vedanta's financial health and commodity cycles. Investors should monitor quarterly margin trends and any updates on Vedanta's debt profile as key near-term catalysts.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-10-01.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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