Hindustan Zinc Soars: Silver, Zinc Drive Record Profits

Hindustan Zinc reported a record performance for the September 2026 quarter, with its consolidated net profit escalating by 142.1% year-over-year. This achievement was significantly bolstered by strong demand and favorable price realisations for both silver and zinc.

The silver division emerged as a key growth engine, with revenues climbing 140.8% to Rs 4,111 crore. This surge was fueled by a remarkable 103% year-over-year increase in local silver prices, reaching nearly Rs 2.4 lakh per kilogram. Consequently, the silver segment contributed 43.1% to the company's total segment profit of Rs 8,365 crore.

Amidst this strong performance, the company sold 173 tonnes of refined silver, a 17% increase year-over-year. The average international silver price stood at $62.6 per ounce, up 59% year-over-year, driven by its safe-haven status amidst global economic uncertainties.

The zinc business also showed robust growth, with revenues up 59.5% to Rs 10,414 crore. Refined zinc sales increased by 6% to 214,000 tonnes, supported by a 35% rise in the average LME price to $3,825 per tonne, driven by demand from electric vehicles and infrastructure.

Despite the impressive financial results, investor sentiment was impacted by volatility in silver prices. However, Hindustan Zinc maintains a strategic hedging policy to mitigate risks associated with spot price fluctuations, locking in a portion of its production at a predetermined price.

Hindustan Zinc's consolidated revenue from operations grew by 76.5% year-over-year to Rs 15,093 crore for the quarter. The company's consolidated return on equity (RoE) stood at an impressive 76.6%, significantly outperforming peers in the non-ferrous metals sector.