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Summary: Hindustan Zinc Ltd (HZL) has delivered a stellar Q3 performance, reporting its highest-ever quarterly revenue and a massive 48% jump in net profit. The surge is powered by record silver volumes, a 5-year low in production costs, and a ₹10/share dividend payout.
Mumbai: The glitter of silver has turned into pure gold for Hindustan Zinc Ltd (HZL) shareholders. The Vedanta Group subsidiary reported a blockbuster performance for the quarter ended December 31, 2025, sending its stock soaring to the day's high of ₹662 on the bourses.
The miner reported a consolidated net profit of ₹3,916 crore, marking a robust 48% YoY jump compared to ₹2,649 crore in the same quarter last year. The street cheered not just the profit numbers, but the operational efficiency that drove them.
HZL’s financial scorecard for Q3 FY26 is a sea of green:
Dividend Bonanza: The Board has declared an interim dividend of ₹10 per equity share, keeping its reputation as one of the highest dividend-yield stocks intact.
While zinc is the namesake, silver was the hero of this quarter. With global silver prices trading at record highs (crossing ₹1 lakh/kg levels recently), HZL capitalized on the rally.
As the world's third-largest silver producer, HZL is uniquely positioned to benefit from the industrial demand for silver in EV batteries and solar panels.
In a commodity business, cost control is king. HZL managed to lower its Zinc Cost of Production (CoP) to $940 per tonne—the lowest in five years.
Management attributed this to:
Investors gave a thumbs up to the results. The stock, which had been consolidating in the morning trade, witnessed a sharp vertical spike post-announcement, hitting an intraday high of ₹662 on the NSE.
At last: Hindustan Zinc is currently in a "sweet spot." It is benefiting from a dual tailwind: rising base metal prices (Zinc/Lead) and a structural bull run in precious metals (Silver). With a cost of production below $1,000/tonne and a cash-rich balance sheet, the dividend payouts are likely to remain sustainable. The key monitorable now will be the global recession fears which could dampen zinc demand, but for now, the silver cushion is proving to be robust.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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