Vedanta shares set to gain from Hindustan Zinc's strong quarterly results, say analysts

UPDATE - follow-up to Why should you buy Vedanta shares despite strong Hindustan Zinc Q2 results 2026? Experts' views, target price, stop-loss: Hindustan Zinc Ltd posted strong second-quarter results on Monday, beating market estimates with an EBITDA of ₹9,290 crore, which is up 14.20% quarter-on-quarter against a consensus estimate of 6.90%.

Growth Factors

Lower zinc production costs at $703 per tonne compared to $851 in the first quarter drove this EBITDA growth, alongside higher sulfuric acid realisations, higher silver and lead volumes which grew 16.1% and 8.5% respectively, and rupee depreciation.

Analyst Views

Shweta Dikshit of Systematix Institutional Equities reported Q2 revenue of ₹14,582 crore, which is up 76% year-on-year and 12% quarter-on-quarter. She raised FY27 and FY28 EBITDA estimates by 23% and 9%, giving a target price of ₹677 per share. Akhilesh Kumar of Emkay Global Financial Services noted that Hindustan Zinc contributes 90% of the consolidated EBITDA of Vedanta Ltd and maintained a buy rating on Vedanta with a target price of ₹350.

Context

Hindustan Zinc is a subsidiary of the Vedanta Group and operates as a major producer of zinc, lead, and silver in India. Market analysts closely track its financial performance because its earnings significantly impact the overall profitability and share value of its parent company, Vedanta Ltd.