Indian billionaire Anil Agarwal’s Hindustan Zinc posts record $675 million quarterly profit

Hindustan Zinc, part of Indian billionaire Anil Agarwal’s Vedanta group, reported record quarterly profit of 64.12 billion rupees ($675.5 million) for the three months ended September 30, 2026, as higher metal prices, increased production and lower zinc production costs boosted earnings.

The Indian mining company’s consolidated net profit rose 142% from 26.49 billion rupees a year earlier, according to its October 19 earnings announcement. Revenue from operations increased 76.5% to 150.93 billion rupees, reflecting stronger prices and higher output across its metals business.

The results underline the importance of Hindustan Zinc to the Vedanta group’s mining operations as stronger commodity prices and improved operating efficiency support profitability.

Hindustan Zinc’s earnings before interest, taxes, depreciation and amortisation rose 108% year on year to a record 92.85 billion rupees. Its net profit margin increased to 42% from 31% in the corresponding quarter last year.

The company also reduced its zinc production cost, excluding royalties, by 29% to $703 per tonne during the quarter. Improved production efficiency, better ore grades and increased use of renewable power contributed to the reduction.

Chief Executive Amarendu Prakash said during a post-earnings call that the company had lowered its zinc production cost forecast for the 2027 financial year to between $825 and $850 per tonne, from an earlier range of $975 to $1,000.

The revised forecast provides further evidence of the company’s efforts to improve operating efficiency while expanding production. Lower unit costs can help protect margins when commodity prices weaken, although the extent of that protection depends on future prices, production levels and other operating expenses.

Mined metal production rose 5% year on year to 271,000 tonnes, while refined metal production increased 7% to 264,000 tonnes. Silver production climbed 20% to 173 tonnes.

Higher silver prices and increased sales contributed to the company’s financial performance alongside stronger zinc prices. Revenue from silver sales more than doubled, while revenue from zinc sales also increased substantially, according to the company’s reported results.

The gains came as zinc prices benefited from supply constraints and expectations of a global market deficit. Hindustan Zinc has estimated that the global refined zinc market could face a deficit of about 180,000 tonnes in 2026, amid mine closures and declining ore quality.

Such market conditions could support prices, although the outlook remains dependent on global demand, mine supply and broader economic conditions.

Hindustan Zinc is part of Vedanta, the diversified natural resources group controlled by Agarwal. Its operations span the mining, processing and refining of zinc, lead and silver, as well as wind power generation.

The company’s latest results add to the earnings contribution of Vedanta’s metals businesses at a time when higher commodity prices are supporting revenues across parts of the mining sector.

For Agarwal, the distinction is between the performance of a company within his business portfolio and his personal financial returns. Hindustan Zinc’s higher profit does not translate directly into an equivalent increase in his personal wealth.

The latest quarter nevertheless demonstrates how stronger metal prices, higher production and lower operating costs can combine to increase earnings at a major mining business within his group.

Hindustan Zinc’s performance will depend on whether it can sustain its production gains and cost improvements while navigating changes in commodity prices and global demand.