Why should you buy Vedanta shares despite strong Hindustan Zinc Q2 results 2026? Experts' views, target price
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.
According to 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.
Decoding the Hindustan Zinc Q2 results, Shweta Dikshit, Deputy Vice President – Metals and Mining at Systematix Institutional Equities, said, “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 said 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.
Giving a ‘buy’ tag to Hindustan Zinc shares after strong Q2 results 2026, Shwetta Dixit of Systematix Institutional Equities, said, "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."
Whether Vedanta shares benefit from Hindustan Zinc's Q2 results 2026, Akhilesh Kumar, Research Analyst at Emkay Global Financial Services, said that Vedanta Ltd is expected 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.
Giving a ‘buy’ tag to Vedanta shares, Akhilesh Kumar of Emkay Financial Services said, “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.”
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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