Hindustan Zinc shares climbed 6% on January 23, marking a fresh 52-week high amid a record rally in silver prices. The surge reflects growing market attention on precious metals as investors navigate global economic uncertainty and geopolitical tensions.
The stock’s market capitalization is now approaching the coveted Rs 3 lakh crore mark, highlighting the strong performance of one of India’s leading metal producers.
Market Performance Today
- Hindustan Zinc share price: ₹704.6 (up 5.4% at 11:05 am)
- Silver spot price: $98.71 per ounce, after hitting a record high of $99.20
- MCX February silver contract: ₹3,36,147 per kg (up 2.7%), after reaching ₹3,39,927 per kg earlier
The market rally in Hindustan Zinc comes as silver continues its record-breaking momentum, providing a strong boost to the company's earnings.
Company Details
Hindustan Zinc is a major silver and zinc producer in India, and a significant contributor to Vedanta Group’s metals portfolio.
- Ownership: Vedanta holds 62%, Government of India 28%
- Acquisition: Vedanta’s Anil Agarwal acquired the Navratna company from the government for approximately ₹500 crore
- Divestment history:
- November 2024: Government sold 1.6% stake for ₹3,450 crore
- June 2025: Vedanta sold 1.6% stake for over ₹3,000 crore
The stock’s performance demonstrates both strong investor confidence and the strategic importance of Hindustan Zinc in India’s mining sector.
Financial Performance Snapshot (Q3FY26)
Hindustan Zinc’s quarterly results highlight robust operational efficiency and healthy margins:
- EBITDA: Up 36% QoQ and 35% YoY, exceeding consensus by 8%
- EBITDA margins: Expanded 310 bps to 55.1%
- Profit after tax: Increased 46% YoY
- Cost of zinc production: ~$940 per tonne (excluding royalty), the lowest in five years
- Contribution of silver: Nearly 44% of total EBIT, benefiting from record prices
The results underline how silver’s surge directly supports earnings, reinforcing Hindustan Zinc’s position as a strong cash-generating entity.
Silver Market Trends Driving Stock Performance
The rise in Hindustan Zinc shares is closely tied to silver price trends, which have shown notable strength this month:
- Spot silver jumped 2.6% to $98.71 per ounce
- MCX February silver futures surged 2.7% to ₹3,36,147 per kg
- Record high of ₹3,39,927 per kg earlier in the day
Elevated silver prices not only enhance profitability for Hindustan Zinc but also increase investor interest in metal-linked stocks amid market volatility.
Summary
Hindustan Zinc’s recent share price rally reflects a combination of strong quarterly results, record silver prices, and strategic market positioning.
Key takeaways:
- Stock hit a 52-week high, trading near ₹705
- Market cap: Close to Rs 3 lakh crore
- Robust earnings: EBITDA growth of 36% QoQ, profit after tax up 46% YoY
- Silver contribution: 44% of total EBIT
- Operational efficiency: Lowest zinc production cost in five years
For investors tracking Hindustan Zinc share price and stock market today, the company’s performance offers a clear example of how commodity-driven profits can influence overall market sentiment.
Source: Moneycontrol
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