



Silver is roaring—and Hindustan Zinc is cashing in
electric vehicles, and electronics pushing the market into a supply deficit for the fifth consecutive year in 2025. Silver is currently trading at about $72 per ounce (oz), almost double the average of $36.6 per oz in the half-year ended September (H1FY26), and 1.4 times the FY25 average of $30.4 per oz. The persistent demand-supply mismatch is expected to keep prices firm.The rally brightens HZL’s earnings outlook.
Every $1 per oz increase in silver prices lifts the company’s Ebitda by about 1%. Silver accounted for 41% of HZL’s earnings before interest and taxes (Ebit) in H1FY26, up from around 28% in FY23, and is expected to rise to 45% by FY27.“We believe HZL provides the cleanest exposure to play silver price strength in India,” noted Emkay Global Financial Services in a 17 December report.Zinc prices have also firmed after a marginal decline in H1FY26. Prices on the London Metal Exchange rose to nearly $3,400 per tonne in mid-December, about 35% higher than the April lows, driven by a sharp drop in inventories.
Although prices have since eased, they remain above the FY25 average of $2,875 per tonne. A $100 per tonne increase in zinc prices boosts HZL’s Ebitda by roughly 4%.On the flip side, HZL continues to face challenges in ramping up production, prompting the management to trim FY26 guidance. The company now expects to produce 1.075 million tonnes (mt) of metals (zinc plus lead), just 2% higher than FY25 levels, and 680 tonnes of silver, 1% lower than FY25.
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