Hindustan Zinc Q3 Silver Production Jumps 10% As Price Rally Draws Focus

Vedanta Group firm Hindustan Zinc Ltd. on Friday reported a 10% sequential growth in saleable silver production in the third quarter of the current financial year at 158 metric tonnes, in line with lead production. On an annual basis, production dropped 1%, according to business updates disclosed to stock exchanges.

The company said it achieved its best ever third quarter mined metal production at 2,76,000 tonnes driven mainly by higher ore production. It rose 4% year-on-year and 7% quarter-on-quarter.

It also posted a record third quarter refined metal production at 2,70,000 tonnes (up 4% y-o-y and 9% q-o-q) driven by commissioning of debottlenecking projects at Chanderiya and Dariba, ramp up of 160 Ktpa roaster at Debari and better plant availability.

Refined lead production fell 11% YoY mainly on account of ‘pyro operations on lead only mode' in previous period, the company said.

Wind power generation stood at 50 million units, up 5% YoY in line with wind velocity.

Hindustan Zinc is the world's largest integrated zinc producer and amongst the top five silver producers globally. The company supplies to more than 40 countries and holds a market share of about 77% of the primary zinc market in the country.

Silver Focus

Analysts at brokerage firm B&K Securities said HZL's industry-leading cost advantage, large-scale capacity expansion plans, strong silver leverage and forward integration will together create a compelling long-term growth narrative.

The Vedanta Group company's operations span some of the most technologically advanced underground zinc-lead mines in the world, including Rampura Agucha, Sindesar Khurd, Zawar, Kayad and Rajpura Dariba.

Silver prices are expected to remain above $50 per ounce across fiscal 2026, lifting silver's contribution to operating revenue from 28% in financial year 2025 to 42% in fiscal 2027, as per analysts.

Shares of Hindustan Zinc settled 2.75% higher at Rs 628.6 on the BSE, ahead of the announcement, compared to a 0.7% rise in the benchmark Sensex. The stock has risen 38.63% in the last 12 months.