1 week ago
Silver Surge Turns Hindustan Zinc Into Profit Machine
Silver has become much more expensive as investors look for assets they consider safer during uncertain times.
This has helped Hindustan Zinc, a company that produces silver and zinc.
In the June 2026 quarter, its silver business earned much more money than it did a year earlier.
The company’s total profit also rose sharply to Rs 5,469 crore.
Hindustan Zinc sold slightly more silver than in the same quarter last year.
However, the company does not benefit from every price increase immediately because it protects part of its production using hedging contracts.
If global problems continue, silver prices could rise further and help the company.
If those problems ease, silver prices could fall and hurt its results.
Global silver prices rose to about $70 per ounce, while Mumbai prices reached roughly Rs 2.46 lakh per kilogram.
Hindustan Zinc’s stock gained nearly 40% in one year, despite a 5% fall in the Sensex.
The company sold 149 tonnes of refined silver in the June 2026 quarter, up from 145 tonnes a year earlier.
Silver division revenue rose 169% to Rs 3,839 crore, while segment profit increased 170% to Rs 3,327 crore.
Hindustan Zinc hedged 59 tonnes of silver at an average price of $60 per ounce to reduce exposure to price volatility.
- Who
- Hindustan Zinc, its promoter Vedanta, silver investors, and other market participants.
- What
- Rising silver prices have increased Hindustan Zinc’s silver revenue, segment profit, and consolidated net profit.
- Where
- Silver prices are reported globally and in Mumbai; Hindustan Zinc trades on India’s stock market.
- When
- The key results concern the June 2026 quarter; the stock performance and silver-price comparisons also include data through June 2026.
- Why
- Investors are seeking alternative and perceived safe-haven assets amid bond-market volatility, high US government debt, and continuing Middle East tensions.
Potential upside
Key risks and cautions
Future silver prices
Potential upside
Continued bond-market turmoil and Middle East tensions could support higher silver prices and benefit Hindustan Zinc.
Key risks and cautions
A viable solution to the Middle East crisis or easing global uncertainty could push silver prices down and weaken Hindustan Zinc’s performance.
Investment appeal
Potential upside
Hindustan Zinc has gained nearly 40% in one year, has a reported 76.6% return on equity, and has benefited from strong silver earnings.
Key risks and cautions
Metal stocks are exposed to global economic and commodity-price fluctuations, and investors have been warned about sharp volatility in precious metals.
Hedging strategy
Potential upside
Hedging part of annual production can make revenue, EBITDA, and cash flows more predictable and protect against adverse price movements.
Key risks and cautions
Because of its hedges, Hindustan Zinc may not fully realize an immediate surge in spot silver prices.
Key facts
- Mumbai silver price
- About Rs 2.46 lakh per kilogram, compared with Rs 2.21 lakh at the end of June 2026.
- Global silver price
- About $70 per ounce on Friday, compared with an average of $66 per ounce in June 2026.
- Hindustan Zinc silver sales
- 149 tonnes in the June 2026 quarter, compared with 145 tonnes a year earlier.
- Silver division revenue
- Rs 3,839 crore in the June 2026 quarter, up 169% year over year.
- Silver segment profit
- Rs 3,327 crore, up 170% year over year.
- Consolidated net profit
- Rs 5,469 crore, representing 144.8% year-over-year growth.
- Hedging position
- 59 tonnes of silver hedged at an average price of $60 per ounce.
Sources
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