Hindustan Zinc Stock Surges Amid 145% Profit Explosion; Brokerage Puts Price Targets on Table
Shares of Hindustan Zinc climbed 2% to reach a high of ₹541 on the BSE on Monday. This rally comes after the Vedanta Group company reported a massive 145% year-on-year (YoY) surge in net profit, booking ₹5,469 crore for the first quarter of FY27.The results showcase robust operational efficiency and strong market pricing power within the metals sector. Following the release on Friday, multiple brokerages have reiterated ‘Buy’ calls, underscoring confidence in the metal major’s future trajectory.
##Financial Highlights and Operational Gains
Hindustan Zinc reported significant growth across key metrics for the April-June quarter of FY27. Revenue from operations jumped approximately 77% YoY to ₹13,747 crore, significantly up from ₹7,771 crore reported in the same period last year.
The company's net profit margin saw a substantial improvement, rising to 40% in Q1 FY27. This is notably higher than the 29% margin recorded during the equivalent quarter of FY26. The operating margin also reached 52%, reflecting improved cost management and pricing leverage.
Net worth for the metal major more than doubled on a YoY basis, climbing about 108% to ₹23,587 crore by the end of the June quarter. Furthermore, the debt-to-equity ratio stands at an attractive 0.32 times, down from 1.19 times in Q1 FY26.
##Analyst Consensus and Bullish Outlook
Financial experts are generally positive on Hindustan Zinc, citing its industry-leading cost position and strong balance sheet. JM Financial noted that the company’s Q1 EBITDA beat estimates, driven by lower costs of production.
Nuvama Institutional Equities reaffirmed a ‘Buy’ call, forecasting a 3% volume CAGR for refined metal and a 4% volume CAGR for silver over FY26–28E. The brokerage projects that higher prices combined with cost control could drive EBITDA at a 20% CAGR across the same period.
Motilal Oswal also noted that revenue growth was fueled by favorable commodity prices, stronger dollar realization, and high by-product realization. They highlighted that the recently announced expansion plans are aligned with the long-term objective of doubling existing capacity.
##Valuation and Near-Term Catalysts
The bullish consensus remains largely centered around cost efficiency and future growth potential. Nuvama has set a target price of ₹700 per share, implying approximately 32% upside from the stock’s previous closing price of ₹531.95 apiece. JM Financial maintains a ‘Buy’ call with a target price of ₹660, suggesting a 24% potential upside.
However, Motilal Oswal provided a differing perspective, maintaining a ‘Neutral’ call and setting a target price at ₹570 apiece. The brokerage stated that while earnings are strong due to favorable metal pricing, the current valuation appears to have already priced in all positive factors.
Hindustan Zinc's Q1 EBITDA of ₹7,990 crore was assessed by Nuvama as nearly in line with estimates, amidst seasonally lower volume. Refining costs stand at $851/ton (down $52/ton QoQ), benefiting from higher sulphuric acid prices and rupee depreciation.
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