Hindustan Zinc’s Q2 FY26 revenue of Rs 85.5 billion (3.6%/+10% YoY/QoQ) was broadly in line with the brokerage's estimate. Ebitda of Rs 44.5 billion (+8%/+15% YoY/QoQ) was in line with estimate.
NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Systematix Report
Silver has experienced sharp surge through 2025, driven by a combination of elevated industrial demand and physical market stress as inventories fell over the period. Silver’s dual role as a precious and industrial metal has supported the rally with growth in photovoltaic demand (solar cell uses silver paste), electronics, and EV components.
Usage in specialized segments makes silver substitution at scale a major challenge, likely to add to near term inelasticity in prices. Hindustan Zinc Ltd. stands to immensely benefit from commodity price tailwinds, that we expect to sufficiently offset the impact of lower silver volumes in the near term as it continues to operate on zinc and lead mode.
Silver deliveries in FY28 are expected to reach 750 tons annually, with incremental volumes resulting from-
full stabilization of the fumer plant,
silver recovery from jarosite hot acid leaching plant.
We estimate 658tons/715tons/739tons silver volumes in FY26/FY27/FY28.
We revise FY26/FY27 Ebitda estimates higher by 12%/21% and roll forward to September 2027, introducing FY28 estimates.
We upgrade Hindustan Zinc to Buy with a SOTP-based target price of Rs 577/share based on 7.5x September 2027 EV/Ebitda for the zinc and lead segment and 12x for the silver segment Ebitda, assuming 45%/50% Ebitda contribution from the silver segment in FY27/FY28.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
POPULAR