




Can the silver rally continue to mask Hindustan Zinc’s production problem?
Subscribe to enjoy similar stories. Hindustan Zinc Ltd (HZL) shares have gained over 4% since the company reported a notable improvement in its financials for the December quarter (Q3FY26) on Monday. Consolidated revenue and Ebitda grew by 27% and 35% year-on-year to ₹11,000 crore and ₹6,054 crore, respectively.
Growth was aided by higher silver and zinc prices, lower cost of production and marginally higher volumes. Recall that lower realization for zinc and lead, and decline in volumes for lead and silver had weighed on H1FY26 performance. Thus, HZL’s revenue and Ebitda growth for 9MFY26 is slower than Q3, at 9% and 14%, respectively.
Q3 performance was mainly buoyed by the unprecedented rally in silver prices, led by significant growth in industrial demand. Average prices at LBMA (previously called the London Bullion Market Association) stood at $54.7 per ounce (oz) in Q3, up 39% sequentially and 74% year-on-year. The US’s inclusion of silver in its list of critical minerals in November seems to have further pushed up demand.
The silver business contributed 44% of HZL’s earnings before interest and taxes (Ebit) in Q3, against 35% a year ago. Besides, higher demand drove zinc prices up 12% sequentially, after a decline in H1. Apart from the benefit of improved realization, HZL is also seeing a structural drop in its cost of production (CoP).
Read on livemint.com