Hindustan Zinc Share Price Surges 4% Amid Silver Prices Rally

For the third straight session, Hindustan Zinc, the Vedanta Group’s flagship zinc producer, saw its shares climb on Thursday, December 11, 2025. The stock opened at ₹516.50 and surged to ₹532 intraday, gaining 4% from the prior close and nearing its 52-week high of ₹546.80.

Market Performance: Zinc and Silver Driving Gains

The latest rally comes as silver prices hit historic highs, reflecting robust industrial demand and tight global supply. On MCX, February silver futures surged to ₹1,93,452 per kilogram, while spot silver in international markets climbed to $62.89 per ounce, a year-to-date jump of 113%.

• Domestic silver prices rose 16% in November alone, resulting in a 121% surge in 2025 so far.
• The strong silver performance is supported by declining inventories and the metal’s inclusion in the US critical minerals list.

Why Silver Matters for Hindustan Zinc

Silver remains a major profit driver for Hindustan Zinc, accounting for roughly 40% of the company’s total profitability. With stable production costs and rising silver prices, the company is expected to see higher profit margins per unit.

Key points from the recent quarter:

• Consolidated net profit rose 14% YoY to ₹2,649 crore in Q2 FY26.
• EBITDA increased nearly 7% to ₹4,209 crore despite slightly lower production volumes.
• Average silver prices were $39.4 per ounce, up 34% YoY. Each $1 rise in silver price contributes about ₹200 crore to EBITDA.

Company Overview

Specialising in zinc, lead, and other non-ferrous metals, Hindustan Zinc engages in exploration, mining, and smelting. Its offerings comprise:

• Zinc ore and metal
• Lead-zinc concentrate
• Lead and cadmium metals
• Silver metal
• Sulfuric acid

The company continues to benefit from industrial demand, global supply constraints, and increasing investments in silver through ETFs and physical holdings. Rising silver consumption, particularly in solar panel manufacturing, is supporting both domestic and international demand, ensuring Hindustan Zinc remains a key beneficiary.

Summary

The rally in Hindustan Zinc shares reflects the strong influence of record-high silver prices on its earnings and market standing. Coupled with steady zinc production, the company is set to maintain robust financial results, keeping investors closely focused on both silver trends and its operational performance.