The uptick comes as global silver prices continue to scale record highs, recently breaching $58 an ounce. Hindustan Zinc remains the country’s only pure-play listed silver producer, with about 40–45% of its EBIT derived from the metal.
Silver’s rally is being fuelled by expectations of a U.S. Federal Reserve rate cut, strong industrial consumption, and tightening inventories — all of which are spilling over into sentiment for the metal’s key producers.
Emkay, in a September report, said that the market is yet to fully price in the Hindustan Zinc’s exposure to silver, even as global peers such as Fresnillo and Grupo Mexico have already re-rated in 2025. With consensus expectations still trailing the rally, they see significant room for Hindustan Zinc’s valuation to catch up — a rating that would directly benefit parent Vedanta Ltd (VEDL), where the company accounts for 40% of consolidated EBITDA.
“Interestingly, silver is a by-product of zinc which implies that 88% of silver revenue is a direct pass-through to EBITDA as the cost of production remains tied to zinc production.
Hindustan Zinc posted EBITDA of Rs 17,400 crore in FY25 with a margin of 53%. If spot prices of zinc and silver hold, the brokerage expects EBITDA to climb to Rs 22,000 crore with a 57% margin by FY27.
Globally, Hinzustan Zinc is among the top silver producers, mining 22.5 million ounces annually — ahead of Grupo Mexico (12.1Moz) and not far behind leaders like Fresnillo (52.5Moz) and Newmont (28Moz). It operates in the first quartile of the global zinc cost curve with a 25-year mine life.
The company also ranks number 1 globally in the S&P corporate sustainability assessment for metals and mining and is stepping up its energy transition plans, targeting a rise in renewable power use from 13% currently to 70% by FY28.
At about 11:45 AM, shares of the company were trading at Rs 498, higher by 2.5% from the last close on the NSE. Hindustan Zinc shares have risen 12% on a year-to-date basis.
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