Hindustan Zinc shares in focus as silver prices scale record highs, surge past $75 mark

Listen to this article in summarized format HZL's September quarter expenses stood at Rs 5,245 crore, up from Rs 5,065 crore in Q1FY26 and down from Rs 5,309 crore in Q2FY25. Hindustan Zinc jumped 3.4% to their new peak of Rs 646 on the BSE on Friday, registering a gain of 14% in the last 10 trading sessions, after silver prices surged to fresh lifetime highs, crossing the $75 per ounce mark globally for the first time. On the MCX, silver prices scaled a new high of Rs 2,32,741/kg today. Silver has witnessed a year-to-date gain of over 140% in 2025, outperforming most asset classes on the back of robust industrial demand, safe-haven buying, and persistent global supply constraints. The surge is being fuelled by heightened demand from sectors such as solar energy, electric vehicles, electronics, and investor optimism amid geopolitical tensions and expectations of monetary easing in the U.S. As one of the top five global silver producers, Hindustan Zinc is seen as a key beneficiary of this trend. The company has a production capacity of nearly 800 tonnes, with 38% of its EBIT directly linked to silver. As silver prices climb, analysts expect margin gains for the company, further supported by low mining costs and strong realizations. The bullish sentiment around silver had also received a further affirmation after Vedanta Group Chairman Anil Agarwal highlighted the metal’s strong rally in 2025, noting a 125% year-to-date gain in dollar terms. Agarwal, in a post on X on Tuesday, said silver has emerged from the shadow of gold to enter a long-term structural phase, fueled by technology-led demand from sectors such as solar cells and defence equipment. Agarwal added that Hindustan Zinc, as India’s only silver producer and a key arm of Vedanta Group, is already witnessing the benefits of this demand surge. For the September 2025 quarter, Hindustan Zinc reported a consolidated net profit of Rs 2,649 crore, with silver contributing nearly 40% of overall profits, approximately Rs 1,060 crore, marking a 19% sequential increase. The remarks further highlight the company’s strategic positioning in the global silver market. According to a previous report by Jefferies, Hindustan Zinc’s earnings outlook remains robust, with EPS projected to grow 22% in FY26 and 29% in FY27, followed by a 7% uptick in FY28. The brokerage sees upside potential in the stock, underpinned by silver's momentum and the company’s cost-efficient operations. Also read: Analysts see 40% upside in Leela Palaces stock on expansion plans, growing travel demand ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (What's moving Sensex and Nifty Track latest market news , stock tips , Budget 2025 , Share Market on Budget 2025 and expert advice , on ETMarkets . Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times...

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