Hindustan Zinc Shares Jump Nearly 4% as Silver Hits $62.8 Globally and Record Highs in India

On Thursday, the Hindustan Zinc shares surged around 3.77% touching a day’s high price of Rs 532 on NSE. In the past 5 days, the shares have rallied around 6.5% as silver prices hit all-time highs globally and domestically.

Silver Price Surge

The silver prices today with MCX Silver futures hitting record highs, reaching Rs 1,93,452 per kg before settling around Rs 1,92,500, up 1.99% in the current session. On December 1, prices opened at Rs 1,89,908, gaining Rs 3,615 on Fed rate cut bets and geopolitical tensions. Internationally, the price reached an all-time high of $62.88 per ounce due to industrial demand, supply constraints and hedging purposes.

Production Share in India

Hindustan Zinc, India's largest integrated silver producer, benefits directly from the silver rally driven by industrial demand, supply constraints, and investor shifts from gold. The company produces refined silver at 99.9% purity and exports to over 40 countries. Silver contributed around 40% of overall profits.

Hindustan Zinc accounts for nearly all of India's primary silver output, producing around 95% domestically. The company targets 670 to 690 tonnes of saleable silver in FY26. As per CEIC, India’s total silver production reached around 813 tonnes in 2023, with Hindustan Zinc’s ramp-up aligning with national growth from expansions in key regions.

Hedging Strategy

As per recent news from CNBC TV18, Hindustan Zinc hedged 131 tonnes of silver, translating to 34% of H2 of the current financial year's estimated production at $37 per ounce, missing gains as prices soared to $50 per ounce, a 35% rise. Management views hedging as a tool with variable outcomes, planning reviews as markets evolve.

Q2FY26 Financials & Output

Hindustan Zinc posted a consolidated net profit of Rs 2,649 crore on revenue of Rs 8,549 crore in Q2FY26. Mined metal hit a record 258 kt, up 1% YoY, while saleable metal reached 258 kt, a 1% increase YoY; zinc rose 2% YoY to 202 kt, and lead fell 29% to 45 kt.

Silver Production Plans

Hindustan Zinc plans to double metal capacity to over 2,000 ktpa and silver to 1,500 tonnes in five years through a Rs 12,000 crore investment, prioritising silver-rich ores for 30% H2FY26 output hike to 380 tonnes. FY25 saw 687 tonnes supporting ambitions amid global demand increasing rapidly.