Hindustan Zinc share price jumps 5.5%, scaling fresh 52-week high; two reasons behind the sharp rally

Hindustan Zinc is India’s only integrated zinc producer. The company boasts 50 years of operational experience.

It must be noted that silver isn't mined directly but recovered from zinc and lead ores. This is the reason why Hindustan Zinc shares have been in focus for the past six months amid a sharp rally in silver prices.

Silver contributes significantly to HZL's earnings, linking its stock performance closely to precious metal trends. Their growth strategy positions them to capitalise on the increasing demand for silver in green technologies.

Silver hits fresh record high

Silver prices extended their record-setting surge on Tuesday, approaching ₹3.2 lakh per kilogram, while gold futures soared to a lifetime high of ₹1.48 lakh per 10 grams, as investors flocked to safe-haven assets amid deepening global geopolitical uncertainties.

On the Multi Commodity Exchange (MCX), silver futures for March delivery surged by ₹9,674, or 3.2%, to a lifetime high of ₹3,19,949 per kilogram.

The white metal had breached the ₹3 lakh milestone for the first time on Monday, before closing at ₹3,10,275 per kg.

Over the last two trading sessions, silver has zoomed by ₹32,187, or 11.18%, from ₹2,87,762 per kg recorded on January 16.

Gold futures too continued their upward march, scaling fresh records in both domestic and international markets.

Hindustan Zinc Q3 FY26 Earnings

The company on Monday reported a 46.2% rise in consolidated net profit to ₹3,916 crore for the quarter ended December 31, 2025, on the back of higher commodity prices, increased production, and a stronger dollar.

The company had reported a consolidated net profit of ₹2,678 crore in the year-ago period.

The company's consolidated income of HZL during the October-December quarter rose to ₹11,273 crore from ₹8,832 crore a year earlier, the company said in a filing to BSE.

The total expenses in the October-December quarter rose to ₹6,068 crore over ₹5,305 crore in the year-ago period.

What management said

"The quarter marked a record performance, reflecting operational excellence and strong fundamentals, with the company achieving its highest-ever third-quarter metal production and 5-year lowest quarterly zinc cost of production of $940 per tonne," Hindustan Zinc Chief Executive Officer Arun Misra said.

As of December 31, 2025, the company had gross investments and cash and cash equivalents of ₹9,342 crore, invested in high-quality debt instruments. Total borrowings outstanding as of December 31, 2025, were ₹9,013 crore.

"Hindustan Zinc delivered a record financial performance for the quarter and nine months, with Q3 profit after taxes surging 48% sequentially to an all-time high of ₹3,916 crore, driven by the highest-ever revenue and EBITDA," the company's Chief Financial Officer Sandeep Modi said.

The CFO added, "The contribution of our precious metal portfolio to profits rose to 44% during the quarter. With a strong balance sheet, cost leadership, disciplined execution, and industry-leading margins, we are well positioned to translate opportunity into sustained and superior shareholder returns."

About Hindustan Zinc Ltd

Hindustan Zinc Ltd is the world's largest integrated zinc producer and is amongst the top five silver producers globally.

With a total R&R base of 453.2 million tonnes and an average zinc-lead grade of 6.5%, "our mine life is over 25 years. Our fully integrated zinc operations currently hold around 77% market share in India’s primary zinc market. We are amongst the top five silver producers globally with an annual capacity of 800 MT," the company says.

R&R stands for Resources & Reserves.

As per the company's website, HZL is a subsidiary of Vedanta Limited, which owns a 61.84% stake in it, while the Government of India retains a 27.92% stake.