India, Jan 23 : Hindustan Zinc shares surged 6% on January 23, hitting a fresh 52-week high, driven by a continued rally in silver prices amid global economic uncertainty and geopolitical tensions. The stock was trading around Rs 704.6 apiece at 11:05 am, taking its market capitalisation close to the Rs 3 lakh crore mark.
The company, one of India’s largest silver miners, saw strong investor interest as spot silver climbed 2.6% to $98.71 per ounce, earlier touching an all time high of $99.20. On the MCX, February silver futures jumped 2.7% to Rs 3,36,147 per kg, hitting a record Rs 3,39,927 per kg earlier in the session.
Robust Q3 earnings drive optimism
Hindustan Zinc reported Q3FY26 EBITDA of Rs 4,735 crore, up 36% quarter-on-quarter and 35% year on year, beating analyst estimates by 8%. Cost of zinc production fell to $940 per tonne, the lowest in five years, while EBITDA margins expanded 310 basis points to 55.1%. Profit after tax grew 46% YoY, with silver contributing nearly 44% of total EBIT.
IIFL Capital projects EBITDA growth of around 15% CAGR through FY26–FY28, driven by high silver prices and disciplined cost management. While volume growth is expected to remain modest until major expansion projects around FY29, strong cash flows and an anticipated 3% dividend yield are expected to support valuations. The brokerage notes that a $10 per ounce change in silver prices could impact Hindustan Zinc’s fair value by roughly Rs 59 per share.
Ownership and divestment background
Vedanta Group holds a 62% stake in Hindustan Zinc, while the government of India retains 28%. Vedanta’s chairman, Anil Agarwal, acquired the Navratna firm from the government for about Rs 500 crore. Recent divestments include the government selling a 1.6% stake for Rs 3,450 crore in November 2024, and Vedanta offloading a similar stake for over Rs 3,000 crore in June 2025.
Rising silver prices and operational efficiency continue to strengthen Hindustan Zinc’s position as a leading player in India’s metals sector, with analysts closely watching commodity movements and global demand trends.