Hindustan Zinc Share Price in Focus After GST Order Update

Hindustan Zinc Limited has been gaining attention on Tuesday. Hindustan Zinc share price (NSE: HINDZINC) was trading at ₹565.95 as of 10:43 AM IST on December 16, 2025, slipping ₹2.10 or 0.37% from its previous close of ₹568.05. 

The stock opened lower at ₹564.00 and moved within a range of ₹556.15 to ₹567.55 during the session. Notably, Hindustan Zinc recently touched its 52-week high of ₹571.80 on December 15, 2025.

Regulatory Update on GST Order

On December 14, the company informed stock exchanges that it has received an order from the Office of the Assistant Commissioner, Central Goods and Services Tax, Rudrapur Division. The order confirms a penalty of ₹45,98,335 along with a tax demand and applicable interest.

Nature of the Issue

The matter relates to the alleged incorrect availment of Input Tax Credit under Section 16 of the CGST Act, 2017 and Section 20 of the IGST Act, 2017 for the financial years 2018–19 and 2019–20. The order has been issued under OIO No. 37/AC/CGST/RDR/Hindustan Zinc/2025-26 dated December 13, 2025, and was received by the company on December 13, 2025 at 5:56 PM.

Company’s Response and Impact

The company stated that it will file an appeal before the appropriate Appellate Authority within the prescribed timeline. Based on the merits of the case, management expects a favourable outcome and does not anticipate any material impact on its financial position or operations.

Financial Performance in Q2 FY26

In Q2 FY26, the company delivered a strong operational and financial performance, recording its best-ever second quarter mined metal production at 258 kilotonnes, marking a 1% year-on-year increase. 

Zinc cost of production fell to a five-year low of $994 per tonne, improving 7% YoY and 2% QoQ. 

Revenue from operations reached an all-time high for Q2 at ₹8,549 crore, rising 10% sequentially and 4% annually. EBITDA stood at a record ₹4,467 crore, up 16% QoQ and 7% YoY, supported by an industry-leading margin of 52%. 

Profit after tax surged 19% QoQ and 14% YoY to ₹2,649 crore, reflecting robust profitability.

Also Read: Hindustan Zinc Share Price Soars 14% in 3 Days as Silver Prices Hit Record Highs!

Conclusion

Hindustan Zinc remains in focus as the stock consolidates near its 52-week high, while the company’s decision to appeal the GST order is expected to limit any material financial impact, keeping investor sentiment largely stable.

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