San Francisco Frontiers - Analysts Stay Positive on Vedanta After Hindustan Zinc’s Strong Quarter

Market analysts retained positive views on Vedanta after Hindustan Zinc posted quarterly earnings above expectations and strong operating performance.

Hindustan Zinc Q2 Results 2026 effect: The Vedanta Group company Hindustan Zinc Ltd delivered strong Q2 results on Monday, beating the market estimates with Q2 EBITDA of ₹9,290 crore, up 14.20% QoQ. The QoQ EBITDA growth is robust, with the consensus market estimate at 6.90% for Hindustan Zinc Ltd during Q2FY27. As reported by experts, Hindustan Zinc's strong EBIDTA growth was mainly driven by lower zinc cost of production ($703/t vs $851/t in 1Q), which was supported by higher sulfuric acid realisations during 2Q; this was further backed by the sequentially higher volumes across silver and lead, which increased 16.1% and 8.5% QoQ, respectively, and the Indian National Rupee (INR) depreciation.Hindustan Zinc Q2 results reviewDecoding the Hindustan Zinc Q2 results, Shweta Dikshit, Deputy Vice President – Metals and Mining at Systematix Institutional Equities, stated, “Hindustan Zinc (HZ) reported strong 2QFY27 revenue of ₹14,582 crore (+76% YoY/+12% QoQ), 12% above our estimate, driven by higher metal production, higher by-product realisations, and a stronger dollar.”The Systematix Institutional Equities expert stated that the company's EBITDA grew by around 108% YoY, whereas EBITDA margin improved by 928bps YoY and 272bps QoQ to 61.3% in Q2FY27.Hindustan Zinc share price targetGiving a ‘buy’ tag to Hindustan Zinc shares after strong Q2 results 2026, Shwetta Dixit of Systematix Institutional Equities, stated, "We raise our FY27E/FY28E EBITDA estimates by 23%/9%, reflecting stronger 1HFY27 performance, lower CoP assumptions and higher zinc prices, and introduce FY29 estimates. We value the zinc and lead businesses at 9x 1HFY29E EV/EBITDA and arrive at a revised SoTP-based TP of ₹677/share ( ₹669 earlier), implying 26% upside from CMP."Will Vedanta shares benefit from Hindustan Zinc's Q2 results?Whether Vedanta shares benefit from Hindustan Zinc's Q2 results 2026, Akhilesh Kumar, Research Analyst at Emkay Global Financial Services, stated that Vedanta Ltd is projected to benefit from the strong Q2 results of Hindustan Zinc, because Hindustan Zinc contributes 90% of the consolidated EBITDA of Vedanta Ltd. The Emkay Global Financial Services expert recommended buying Vedanta shares following the strong Hindustan Zinc Q2 results 2026.Vedanta share price targetGiving a ‘buy’ tag to Vedanta shares, Akhilesh Kumar of Emkay Financial Services stated, “We expect HZL (Hindustan Zinc Ltd) to log a robust FY27E EBITDA at ₹30,200 crore (~90% of VEDL's EBITDA) backed by strong margin visibility driven by favorable Zinc and Silver prices—now 23% and 28% above the FY26 average level, respectively. Should spot prices sustain at $3,731/t for Zinc and $58/oz for Silver, earnings could see further upside. Coupled with HZL's first-quartile position on the global zinc cost curve, we remain constructive on its earnings and growth outlook. Accordingly, we maintain BUY on VEDL with an unchanged TP of ₹350.”

C.Diaz--SFF