Hind Zinc stock jumps nearly 3% in recent trading as silver prices surged to record highs above $50 per troy ounce, strengthening investor confidence in India’s only primary silver producer. Over the past one month, the stock has delivered an impressive 33% return, driven by a sharp rally in precious metals and strong operational performance during the September 2025 quarter.
Meanwhile, silver prices have climbed nearly 45% year-on-year, reaching all-time highs due to supply constraints and rising industrial demand. In particular, sectors such as renewable energy, electronics, and electric vehicles have fueled consumption. Moreover, the company’s investor presentation indicates that the global silver market continues to face a structural deficit, especially as solar power, 5G infrastructure, and electric mobility accelerate adoption.
Against this backdrop, Hindustan Zinc stands out as a direct beneficiary. Notably, the company remains India’s only integrated and listed primary silver producer. As a result, silver contributed nearly 40% of total profits in the first half of FY26. Additionally, management stated that silver now accounts for around 41% of EBIT, highlighting its growing role in the company’s earnings mix.
At the same time, the company delivered a strong financial performance in the second quarter of FY26. It reported its highest-ever Q2 EBITDA of ₹4,467 crore, while profit after tax rose to ₹2,649 crore. Furthermore, revenue from operations increased 10% sequentially to ₹8,549 crore, supported by firm commodity prices. Importantly, Hindustan Zinc achieved a five-year-low zinc cost of production of $994 per tonne, which helped sustain an industry-leading EBITDA margin of around 52%.
Operational execution also remained steady. During the quarter, the company produced 144 tonnes of saleable silver. Although silver output declined slightly in the first half due to plant availability, management reiterated confidence in achieving its FY26 silver production guidance of 680 ±10 tonnes. To take advantage of elevated prices, the company has redirected mining activity toward silver-rich zones. And prioritised production from the Sindesar Khurd mine, which carries higher silver grades.
Looking ahead, Hindustan Zinc plans to expand silver output as part of its long-term growth strategy. The company targets 1,500 tonnes of annual silver production over time. This growth will be supported by debottlenecking initiatives and a new hot acid leaching plant. In addition, an upcoming 250,000-tonne-per-annum integrated smelter expansion is expected to strengthen capacity and improve recovery rates.
At the same time, the stock’s recent rally follows its inclusion in the Nifty 100 and Nifty Next 50 indices, effective September 30, 2025. This move highlights the company’s improving market stature. It also reflects stronger liquidity and consistent financial execution.
After a sharp price run-up, some investors may consider booking profits. However, management remains confident about long-term prospects. It expects sustained silver price strength to support earnings. Moreover, disciplined cost control and ongoing capacity expansion add further strength. A solid balance sheet also underpins future growth. As a result, Hind Zinc stock jumps not just on near-term momentum, but on improving structural fundamentals as well.
