Hindustan Zinc , a leading integrated producer of zinc, lead, and silver, has reported robust financial results for the quarter ended September 2025, alongside optimistic projections for silver prices. The company expects silver prices to reach $50-55 per ounce by early next year, driven by strong demand and increased industrial usage in renewables and electronics sectors.

Financial Performance

For the quarter ended September 2025, Hindustan Zinc reported impressive financial results:

The company's performance shows significant improvement across key financial indicators, with notable expansion in operating margins.

Silver Production and Price Outlook

Hindustan Zinc has revised its saleable silver output projection for FY26:

• Expected output: Approximately 680 tonnes
• Previous projection: 700-710 tonnes

CEO Arun Misra provided insights into the company's silver production:

• First half production: 293 tonnes
• Second half expectation: Over 380 tonnes

The company is currently hedging silver at $37.00 per ounce, while market prices have surged past $41-42 per ounce. Hindustan Zinc's bullish outlook on silver prices, projecting $50-55 per ounce by early next year, is supported by strong demand and increased industrial usage.

Cost Optimization and Renewable Energy

Hindustan Zinc is focusing on cost optimization and increasing renewable energy usage:

• Expected cost of production: Decline towards $950.00 per tonne from $990.00
• Factors contributing to cost reduction:
  • Operating leverage
  • Increased renewable energy usage
• Renewable energy usage target: 25% by year-end (up from current 19%)

Zinc Price Outlook and Business Strategy

The company anticipates zinc prices to move towards $3,000-3,100 per tonne, supported by steady demand. Additionally, Hindustan Zinc reported that the proposed demerger of its silver business remains on track, signaling potential strategic changes in the company's structure.

This comprehensive update from Hindustan Zinc showcases the company's strong financial performance, optimistic outlook on silver prices, and ongoing efforts in cost optimization and sustainable practices. As global demand for metals continues to evolve, particularly in renewable energy and electronics sectors, Hindustan Zinc appears well-positioned to capitalize on these market trends.

Hindustan Zinc Limited , the world's largest integrated zinc producer, has reported robust financial results for the second quarter, with silver emerging as a significant contributor to the company's profitability. However, the company has revised its silver production forecast.

Financial Highlights

The company achieved its highest-ever second quarter revenue of ₹8,549.00 crore, marking a 10.00% increase quarter-on-quarter (QoQ) and a 4.00% rise year-on-year (YoY). The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at ₹4,467.00 crore, up 16.00% QoQ and 7.00% YoY, with an industry-leading EBITDA margin of 52.00%.

Profit after tax surged to ₹2,649.00 crore, representing a significant increase of 19.00% QoQ and 14.00% YoY. This strong performance was underpinned by higher commodity prices, a stronger dollar, and increased by-product realizations.

Operational Performance

Hindustan Zinc reported its best-ever second quarter mined metal production of 258 kilotonnes (kt), up 1.00% YoY. The company also achieved a five-year low in zinc cost of production at $994.00 per tonne, improving by 7.00% YoY and 2.00% QoQ.

Silver's Growing Importance and Revised Forecast

A notable highlight of the quarter was the revelation that silver now contributes approximately 40.00% to Hindustan Zinc's total profits. This positions the company uniquely to benefit from potential growth in the silver market. The increased contribution from silver underscores the company's diversified portfolio and its ability to capitalize on precious metal market trends.

However, Hindustan Zinc has adjusted its saleable silver forecast. The company now expects to produce 670-690 metric tons of silver, down from the previous estimate of 700-710 metric tons. This represents a reduction of 30-40 metric tons from the earlier production guidance.

Strategic Developments

The company announced several key operational milestones:

1. Commissioning of a 160 ktpa roaster at Debari
2. Completion of debottlenecking at Dariba Smelting Complex
3. Board approval for India's first zinc tailing reprocessing plant of 10 million tonnes per annum (Mtpa) at Rampura Agucha

These developments are expected to enhance the company's operational efficiency and sustainability efforts.

Market Recognition

Hindustan Zinc's strong performance has been recognized by the market, with the company being included in the Nifty 100 and Nifty Next 50 indices. This inclusion reflects the company's growing prominence in the Indian equity market.

Sustainability and Future Outlook

The company continues to focus on sustainable practices, becoming the first Indian company to join the International Council on Mining and Metals (ICMM). This membership aligns Hindustan Zinc with global leaders in responsible and sustainable mining practices.

Arun Misra, CEO of Hindustan Zinc, commented on the results: "Our inclusion into the International Council on Mining and Metals (ICMM) as the first-ever from India reiterates our deep commitment to responsible and sustainable mining. As we embark on our next phase of 2x growth expansion, recovering value from every resource, reusing materials through circular processes and growing portfolio of energy transition metals, we are driving India's journey towards clean energy independence."

The company's strong performance, coupled with its strategic initiatives in sustainability and operational efficiency, positions Hindustan Zinc well for future growth in the evolving metals and mining sector. However, the revised silver production forecast highlights the need for careful management of production targets in the face of changing market conditions.