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Informist, Friday, Oct. 17, 2025

--Hindustan Zinc: Silver drives 40% of co's overall profit 

--CONTEXT: Comments by Hind Zinc's mgmt at post-earnings analyst concall

--Hindustan Zinc: Uniquely positioned to capitalise on silver rally 

--Hind Zinc: Will produce more in Oct-Mar to reach silver output target 

By Ashutosh Pati and Narayana Krishna

MUMBAI/HYDERABAD – Hindustan Zinc Ltd. is aiming to produce more silver in the second half of the financial year 2025-26 (Apr-Mar) to reach the revised full-year target of 680 tonnes, the company's management said in a post-earnings conference call with analysts. Given the surge in prices of silver, the company's management believes they are "uniquely positioned to capitalise on it.

"Silver surges to an all-time high of above $50 per troy ounce, as India's only integrated silver producer and with around 40% of profits from silver, we are uniquely positioned to capitalise on this cycle," the company's management said. Hindustan Zinc, one of the largest producers of zinc and silver globally, reported a net profit of INR 26.32 billion in the September quarter, up nearly 15% on year and above Street expectations. The company earned a revenue of INR 85.25 billion during the quarter, up over 3% on year.

The Vedanta group company revised down its guidance for saleable silver in FY26 to 680 tonnes from 700-710 tonnes and refined metal production to 1.1 million tonnes due to "lower plant availability and lower silver input during the first half of the year". It produced 144 tonnes of silver during the September quarter. The company can produce around 700-750 tonnes of silver by FY27, its management said.

Hindustan Zinc expects a capital expenditure of $350 million-$400 million in FY26. The metal markets have upside potential in the coming months and could drive the company's margins, the management said. "We see zinc remaining in a resilient trading band, lead continuing to be underpinned by battery and industrial demand, and silver potentially sustaining further gains, all of which could drive incremental margin expansion in the coming quarters," the management said. 

Friday, shares of the company ended at INR 500.25 on the National Stock Exchange, down 1.3% from the previous close. End

US$1 = INR 87.97

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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