Hindustan Zinc shares gain 5% on Q4 show; analysts peg up to 24% upside

Hindustan Zinc has further announced that its board has declared the first interim dividend of ₹11 per equity share, i.e. 550 per cent on face value of ₹2 per share, for the FY27

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Kumar Gaurav New Delhi

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Hindustan Zinc Share Price: Shares of Hindustan Zinc were in demand on the bourses on the week’s first trading session, rising 5.04 per cent to an intra-day high of ₹618.20 per share on the NSE on Monday, April 27, on the back of the announcement of its financial results for the fourth quarter of the financial year 2025–26 (FY26), as well as for the full year.

The counter, however, trimmed gains partially but continued to trade higher, and was quoted at ₹617.05 per share at 10:17 AM, up 4.76 per cent from its previous close of ₹588.50 per share on the NSE.

Brokerages, meanwhile, have shared a split verdict on Hindustan Zinc post its Q4 show, but still expect up to 24 per cent upside from the current market price. Analysts at JM Financial have retained their Buy rating on the scrip, citing better-than-expected Q4 performance driven by higher silver realisations and lower cost of production, while maintaining a positive outlook supported by its strong cost position and diversified revenue stream.

Motilal Oswal Financial Services (MOFSL), on the other hand, has reiterated its Neutral stance, noting that the strong Q4 earnings were led by favourable metal prices and volume recovery. However, it maintained that current valuations factor in the positives, with limited near-term upside due to capacity constraints.

Hindustan Zinc Q4 results

Earlier on Friday, April 24, the country’s largest zinc producer announced that during the quarter, its net profit stood at ₹5,033 crore, up 68 per cent Y-o-Y and 29 per cent Q-o-Q, in line with record earnings before interest, tax, depreciation and amortisation (Ebitda). For the full year, it was ₹13,832 crore, up 34 per cent Y-o-Y.

The company’s Ebitda stood at ₹7,747 crore during the quarter, up 61 per cent Y-o-Y and 27 per cent Q-o-Q, driven by increased production, higher zinc and silver prices, lower cost of production, lead concentrate sales, and a stronger dollar. For the full year, the company recorded an Ebitda of ₹22,162 crore, up 27 per cent Y-o-Y.

During the quarter under review, the company’s revenue stood at ₹13,544 crore, up 49 per cent Y-o-Y and 23 per cent Q-o-Q. Revenue for the full year stood at ₹40,844 crore, up 20 per cent Y-o-Y.

Hindustan Zinc has further announced that its board has declared the first interim dividend of ₹11 per equity share, i.e. 550 per cent on face value of ₹2 per share, for the financial year 2026–27, amounting to ₹4,648 crore. The record date for the purpose of payment of the first interim dividend, the company said, has been fixed as Thursday, April 30, 2026.

JM Financial – Buy | Target price ₹765

JM Financial sees nearly 24 (23.97) per cent upside from the current market price, and has retained its Buy rating with a target price of ₹765 per share. The brokerage remains positive on HZL, given its presence at the lower end of the global cost curve, facilitated by high-grade captive mines sufficient to meet requirements for decades, 100 per cent captive power plants, sizeable scale, and a diversified revenue stream with increasing contribution from silver sales.

JM Financial, in its report, noted that the company’s Q4FY26 consolidated Ebitda of ₹7,700 crore was higher than its estimate of ₹7,000 crore, driven by higher-than-expected silver realisation and lower-than-expected cost of production (CoP).

The brokerage further pointed out that for FY27E, management has guided for zinc CoP of $975–1,000/t.

Key takeaways from the results call, according to JM Financial, include volume guidance for FY27 for mined metals / refined metals / silver at 1,150 (+/-10) ktpa / 1,100 (+/-10) ktpa / 680 (+/-10) tpa. Growth capex guidance for FY27 stands at $500–600 million. Renewable energy currently contributes 18 per cent to total power requirement, which the company expects to increase to 35–40 per cent / 70 per cent in FY27E / FY28E, potentially leading to a cost reduction of $25/t.

Motilal Oswal – Neutral | Target price ₹630

MOFSL has retained its Neutral rating with a target price of ₹630 per share (premised on 8.5x EV/Ebitda on FY28E). The assigned target price implies an upside of 2.09 per cent from the current market price. At CMP, HZL trades at 7.8x FY28E EV/Ebitda, and MOFSL believes the current valuation has priced in all positive factors.

The brokerage, in its report, highlighted that the company delivered a strong earnings performance in Q4FY26, primarily driven by favourable metal pricing and a recovery in volumes. The company continues to focus on increasing production output with tighter cost-control measures, which, MOFSL believes, could lead to margin sustenance.

The recently announced expansion plans are aligned with its long-term objective of doubling existing capacity and enhancing long-term earnings visibility.

“Although near-term earnings growth is capped due to limited capacity headroom, LME/silver price inflation emerges as the key catalyst for incremental upside in the near term. We maintain our FY27/28 estimates and believe further price volatility could remain a potential risk or reward for earnings visibility,” said MOFSL in its report.

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(Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.)

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First Published: Apr 27 2026 | 11:02 AM IST