Hindustan Zinc falls 1% after Q2 profit falls to Rs 1,815 cr; brokerages see good H2

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26 Aug, 2025 12:21

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Shares of Hindustan Zinc are trading lower as the company reported a drop in net profit, but declared a higher-than-expected interim dividend.

Analysts have remained positive on the dividend declaration and in-line estimates. They expect a good second half of this fiscal for the company.

The company reported second quarter net profit at Rs 1815 crore, down 29.5 percent against Rs 2,584 crore in the same quarter last fiscal.

The company had reported an exceptional gain of Rs 291 crore in Q2FY18.

Revenue was down 10 percent Rs 4, 777 crore against Rs 5,309 crore. EBITDA fell 22.8 percent at Rs 2334 crore, while margin was down at 48.9 percent.

The company declared interim dividend at Rs 20 per share.

Brokerage: JPMorgan | Rating: Neutral | Target: Rs 290 | Upside: 3%

The global research firm said that the Q2 profit and EBITDA were in line with estimates. The declaration of large dividend is a strong positive. It expects the second half to be materially stronger than the first half.

Edelweiss | Rating: Buy | Target: Cut to Rs 312 | Upside:10 percent

The brokerage house said that Q2 performance was in line and the outlook is benign on favourable volumes. It expects EBITDA growth led by volume ramp-up, lower haulage cost and better grades. It has cut target to adjust for higher than expected interim dividend.

Brokerage: Citi | Rating: Neutral | Target: Cut to Rs 270 | Downside: 4.5 percent

Citi believes that Q2 was impacted due to higher cost, lower realizations and volumes. It sees costs at peak and expects improvement in the second half. It has cut target price to factor in higher costs.