Hindustan Zinc shares surge over 12% in seven sessions; here is why

Shares of the country's largest zinc and silver producer - Hindustan Zinc - rose as much as 2.83% to hit an intraday high of ₹509.60 on Wednesday, December 3, on the National Stock Exchange. On the BSE, Hindustan Zinc shares rose as much as 2.87% to hit an intraday high of ₹509.75.

Hindustan Zinc shares have been witnessing strong buying interest ever since silver started hitting record highs in the domestic and international markets. Hindustan Zinc shares resumed its seven-day rally on Wednesday after a pause in the previous session. In the last seven trading sessions the stock has jumped as much as 12.26%, data from the stock exchanges showed.

Silver futures for March 2026 delivery soared as much as ₹3,126 or 1.72% to a fresh lifetime high of ₹1,84,727 per kilogram on the Multi-Commodity Exchange (MCX) on Wednesday, December 3.

The rally was driven by a weakness in the Indian rupee, expectations of a US Fed rate cut, the RBI’s MPC meet, and a slump in China’s silver inventories.

Similarly, white metal contracts for the May 2026 expiry surged as much as ₹3,323 or 1.81% to a record high of ₹1,87,125 per kilogram.

In the international market, Comex silver (for January 2026 delivery) rallied to a new all-time high of $59.165 per troy ounce. Meanwhile, Comex gold stood at $4,251.30 per ounce, up by 0.72%.

Furthermore, Chinese silver inventories fell to their lowest levels in a decade, with the country exporting a record of 660 tonnes to London to alleviate its supply constraints, which it had faced in October. The supply constraint in London is what led the white metal to touch its previous record high.

Hindustan Zinc Q2 earnings

Hindustan Zinc reported a 13.83% year-on-year (YoY) surge in its consolidated net profit to ₹2,649 crore in the second quarter of the 2025-26 financial year (Q2FY26).

In the corresponding period last year, the company had clocked a profit of ₹2,327 crore.

The Vedanta-group company witnessed a 3.6% YoY increase in its total revenue from operations, which sat at ₹8,549 crore during the quarter under review, as against ₹8,252 crore in the September quarter of FY25.

At an operational level, the firm's EBITDA (earnings before interest, tax, depreciation, and amortisation), also known as operating profit, stood at ₹4,467 crore, marking its best-ever second-quarter EBITDA. It jumped 7% YoY from ₹4,164 crore in the same quarter of FY25.

During the reporting quarter, it also clocked an “industry-leading” EBITDA margin at 52%, expanding from 50% in the September quarter of the previous fiscal year.

Silver drove 40% of its overall profit, which uniquely positioned the firm for “riding the silver wave”.

The growth in revenue and operating profit was driven by higher commodity prices, lower cost of production, higher by-product realisations, softened input commodity prices, and a stronger dollar, which was partly offset by lower production.

The firm witnessed a five-year low second-quarter zinc cost of production (COP), which stood at $994 per tonne, supported by softened input commodity prices and higher by-product realisations. Meanwhile, it recorded the best-ever Q2 for mined metal production, which was at 258 Kt, up 1% YoY.

As of 2:34 pm, Hindustan Zinc shares traded 1.28% higher at ₹502, outperforming the NIFTY NEXT50 index which was down 1.24%.

(With PTI inputs)

Disclaimer: This article is purely for informational purposes and should not be considered investment advice from Upstox. Please consult with a financial advisor before making any investment decisions.

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