Hindustan Zinc Limited has informed stock exchanges about a penalty levied on its promoter company Vedanta Limited by tax authorities. The latest disclosure was made on December 30, 2025, in compliance with regulatory requirements under SEBI Listing Regulations.

Updated Regulatory Disclosure Details

The company filed the disclosure pursuant to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Specifically, the disclosure was made under Clause 20 of Para A of Part A of Schedule III, which pertains to material events that could impact the company.

Promoter Company Impact

Vedanta Limited, which serves as both the promoter and holding company of Hindustan Zinc Limited, received the penalty from the office of Joint Commissioner, CT & GST Circle, Jharsuguda. This represents an updated disclosure following the earlier penalty notification from Bangalore authorities. The penalty details were disclosed by Vedanta Limited to the stock exchanges on December 30, 2025.

Compliance and Transparency

The disclosure demonstrates continued adherence to regulatory transparency requirements. Hindustan Zinc Limited has ensured that all stakeholders are informed about material developments affecting its promoter company that could have implications for the subsidiary.

Document Availability

The complete disclosure documentation is accessible through multiple channels for investor reference. The information has been made available on the websites of both BSE and NSE, as well as on Vedanta Limited's dedicated investor relations portal at https://www.vedantalimited.com/eng/investor-relations-stock-exchange-announcements.php .

The disclosure was signed by Aashhima V Khanna, Company Secretary and Compliance Officer of Hindustan Zinc Limited, ensuring proper authorization and compliance with corporate governance standards.

Shares of Hindustan Zinc are expected to be in focus following silver prices surging to fresh lifetime highs, crossing the $75 per ounce mark globally for the first time. Silver has witnessed a year-to-date gain of over 140% in 2025, outperforming most asset classes driven by robust industrial demand, safe-haven buying, and persistent global supply constraints.

Silver Price Surge Drivers

The surge is being fuelled by heightened demand from sectors such as solar energy, electric vehicles, electronics, and investor optimism amid geopolitical tensions and expectations of monetary easing in the U.S. Vedanta Group Chairman Anil Agarwal highlighted the metal's strong rally, noting a 125% year-to-date gain in dollar terms.

Agarwal noted that silver has emerged from the shadow of gold to enter a long-term structural phase, fueled by technology-led demand from sectors such as solar cells and defence equipment.

Hindustan Zinc's Strategic Position

As one of the top five global silver producers, Hindustan Zinc is seen as a key beneficiary of this trend. The company has a production capacity of nearly 800 tonnes, with 38% of its EBIT directly linked to silver. As silver prices climb, analysts expect margin gains for the company, further supported by low mining costs and strong realizations.

Recent Financial Performance

For the September 2025 quarter, Hindustan Zinc reported a consolidated net profit of ₹2,649.00 crore, with silver contributing nearly 40% of overall profits, approximately ₹1,060.00 crore, marking a 19% sequential increase. The strong performance underscores the company's strategic positioning in the global silver market.

Technical Analysis Perspective

Historical analysis reveals Hindustan Zinc's chart shows one of the longest accumulation patterns dating back to the 1990s in the form of scalloped bottoms. This extended accumulation phase occurred as the Anil Agarwal group systematically acquired shares over nearly a decade before completing privatization in 2002.

The stock has demonstrated a clear stair-step pattern where prior price pivots acted as support during each decline, reflecting classic bullish price behavior. After reaching highs in May 2024, the stock fell sharply but has shown renewed correlation with silver's upward momentum.

Future Outlook

According to Jefferies, Hindustan Zinc's earnings outlook remains robust, with EPS projected to grow 22% in FY26 and 29% in FY27, followed by a 7% uptick in FY28. The brokerage sees upside potential in the stock, underpinned by silver's momentum and the company's cost-efficient operations.

The monthly chart analysis suggests the company may be approaching the end of a wave three advance and could enter a corrective phase, with silver also appearing close to projected targets in the $78-81 range.