Hindustan Zinc Shares: Analysts Bullish on Vedanta Group Stock Amid Brokerage Shifts

Hindustan Zinc Share Price Surges 9% After Strong Q4FY26 Earnings

Hindustan Zinc, a subsidiary of Vedanta, saw its share price jump 9% on Monday, 27 April, following the release of its quarterly earnings for the period ended 31 March 2026 (Q4FY26). The stock reached a day's high of ₹631.90 on the BSE. In recent times, the company has provided strong returns, with a 24% increase in the last one month and a 315% rise in the past six months. Additionally, Hindustan Zinc added 42% to its value in the last one year.

The company reported a significant 67.6% year-on-year increase in net profit to ₹5,033 crore, while revenue rose 43.8% to ₹12,692 crore. This growth was driven by higher metal prices, improved realisations, and strong operational performance. Hindustan Zinc also declared an interim dividend of ₹11 per share, further boosting investor sentiment. On the operational front, the company achieved record mined metal production of 315 kt and refined metal output of 282 kt during the quarter. Silver production rose 11% sequentially, driven by higher lead output, while cost efficiency improved significantly, with zinc production cost declining to $994 per tonne—its lowest level in 16 quarters—supported by higher use of domestic coal in power generation.

Brokerage Outlook

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Brokerages have turned constructive on Hindustan Zinc, driven by strong earnings visibility, improving cost efficiencies, and a rising contribution from silver, which is expected to support margins and valuations going ahead.

Jefferies highlighted sustained earnings momentum and increasing silver contribution as key drivers for the stock's outlook. The brokerage noted that Hindustan Zinc has delivered a strong 34% EPS CAGR over FY24-26 and expects the momentum to continue in FY27 with EPS rising 33% YoY, but growth to subsequently moderate to 5% YoY in FY28. Jefferies retained a Buy rating with a target price of ₹700, noting that valuations at 8.6x FY27E EV/EBITDA are above the long-term average but justified by the higher share of silver in earnings.

HSBC echoed a similar view, emphasising Hindustan Zinc's position on the lower end of the global cost curve. The brokerage marginally raised its EBITDA estimates for FY27 and FY28 and increased its target price to ₹730 from ₹720, maintaining a Buy rating.

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Nuvama Institutional Equities highlighted that the company's Q4 EBITDA came in above expectations at ₹76.7 billion, driven by higher volumes, improved prices, and lower costs. Silver EBIT surged 49% quarter-on-quarter to ₹34 billion, contributing nearly 50% of overall EBIT. The brokerage upgraded the stock to Buy from Reduce and raised its target price to ₹700 from ₹591, factoring in higher zinc and silver price assumptions and a stronger earnings trajectory over FY27 and FY28.

JM Financial also maintained a positive stance, pointing to strong volume guidance and long-term growth drivers. The brokerage highlighted that the company has guided for FY27 production of 1,150 kt for mined metals, 1,100 kt for refined metals, and 680 tonnes for silver. It also expects robust demand for silver from industrial applications such as solar and electronics, which could further support earnings.

JM Financial noted that upcoming capex plans, including a 510 ktpa fertiliser plant and a hot acid leaching plant at Dariba, along with investments of $500–600 million in FY27, will support future growth. It reiterated its Buy rating, citing Hindustan Zinc's large-scale operations, captive mines, integrated power infrastructure, and increasing diversification through silver.

Overall, brokerages believe Hindustan Zinc is well-positioned to sustain its strong earnings momentum, supported by cost leadership, improving commodity dynamics, and a growing contribution from high-margin silver. While risks from commodity price volatility and regulatory factors remain, the consensus view suggests that the company's fundamentals justify continued optimism and potential upside in the stock.