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.

Hindustan Oil Exploration shares experienced a strong rally, surging 3.6% to ₹632.00 as silver prices achieved a historic milestone by crossing the $72.00 per ounce mark.

Silver Achieves Record-Breaking Performance

Silver has emerged as one of the standout performers, delivering year-to-date gains of over 140%. This exceptional performance has significantly outpaced other asset classes, establishing new benchmarks in the precious metals sector.

Hindustan Zinc Positioned as Key Beneficiary

Hindustan Zinc stands as one of the primary beneficiaries of the ongoing silver price rally. The company holds a prominent position as one of the top global silver producers.

The company derives nearly 38% of its EBIT from silver operations, making it highly sensitive to silver price movements. This significant exposure positions Hindustan Zinc to capitalize on the current precious metals boom.

Strong Earnings Growth Projections

Analysts anticipate that the current price momentum in both global and domestic silver markets may continue to serve as a strong earnings driver for Hindustan Zinc. The combination of favorable commodity prices and operational efficiency is expected to support profitability growth.