Vedanta shares face pressure after strong zinc quarter
Hindustan Zinc posted Q2FY27 EBITDA of ₹9,290 crore, up 14.2% QoQ, supported by lower zinc costs and stronger silver and lead volumes. Vedanta shares remained under pressure, with short futures build-up and ₹250–₹260 option positioning.
after close1 source ↓machine-written, see hownot a recommendation
- VEDL close
- ₹243.20
- On the day
- -1.18%
- Futures OI, short build-up
- +2.4%
- Put-call ratio
- 0.57
- Max pain
- ₹255.00
Hindustan Zinc reported a strong second quarter for FY27, with EBITDA at ₹9,290 crore, up 14.2% sequentially and ahead of the 6.9% consensus growth estimate cited in the Livemint report. Revenue reached ₹14,582 crore, up 76% year on year and 12% quarter on quarter, according to the expert review referenced in the article. The result puts operating performance from the zinc, silver and lead businesses at the centre of the market’s assessment of Vedanta’s earnings outlook. ⚙️
The key driver was a sharp reduction in zinc cost of production to $703 per tonne from $851 per tonne in the first quarter. Higher sulfuric acid realisations, sequential volume growth in silver of 16.1% and lead of 8.5%, and rupee depreciation supported the improvement. Lower costs and stronger by-product realisations can improve cash generation for the metals group, while higher production volumes provide operating leverage across the segment. Metals sentiment therefore remains closely linked to commodity prices, production costs and currency movements. 📈
However, OI Charts data showed that Vedanta shares closed at ₹243.20 on 19 Oct 2026, down 1.2% on the day. The stock declined 8.2% over five sessions and 9.1% over 20 sessions, with volume at 5,411,850 shares. The data placed the stock near its recorded 52-week low of ₹242.50, compared with a 52-week high of ₹795.00 recorded on 21 Apr 2026. The sharp gap between the latest price and the earlier high indicates that the strong subsidiary result had not yet reversed the broader price trend.
Derivatives positioning also showed caution. Futures open interest rose 2.4% to 60,171,450 shares, marked as a short build-up, while the put-call ratio stood at 0.57. For the 27 Oct 2026 expiry, eight days away, the largest put open interest was at ₹250 and the largest call open interest was at ₹260; max pain stood at ₹255. These levels define the immediate trading range to monitor. A sustained move above the call open-interest wall or below the put level would show whether the earnings strength is translating into a change in positioning. The next catalysts are further management commentary, commodity-price moves and the expiry-session adjustment of open interest.
Source: Livemint, 20 Oct 2026
Not investment advice. For informational purposes only.