Hindustan Zinc's share price climbed 3% to ₹656.35, the highest level since August 2024, as silver prices kept rising.
Why the stock is up
The company opened the day at ₹656.35 and held that level, giving it a 16‑month high despite broader market indices falling for the third day in a row. So far in December, the stock is up about 33.5% and has contributed to a roughly 46% rally in the first part of 2025.
Impact on the company's value
The rally lifted Hindustan Zinc's market capitalisation to about ₹2.74 lakh crore, adding roughly ₹85,000 crore in 2025 alone.
How silver drives earnings
For every $1 rise in silver per ounce, Hindustan Zinc’s EBITDA improves by about 1%. Silver now makes up 41% of the company's earnings before interest and taxes (EBIT) for the first half of FY26, up from 28% in FY23, and is expected to reach 45% by FY27.
Silver price surge
Silver prices have been on a record‑breaking run. After jumping ₹16,000 per kilogram on Friday, they rose another ₹14,400 per kilogram on Monday, crossing the ₹2.5 lakh mark for the first time at ₹2,54,174 per kilogram. This is a 43% gain for the month and a 182% rise since the start of the year, more than double gold’s 82% increase.
Internationally, spot silver crossed the $80 per ounce barrier, reaching $84.
What’s pushing silver higher?
- Supply shortage: Global silver supply has lagged demand for seven straight years, creating a structural deficit that is expected to continue into 2026.
- Industrial demand: Silver is widely used in manufacturing, especially for solar panels.
- Investment demand: More investors are buying physical silver and silver‑based ETFs, boosting confidence in the metal.
- Policy support: Inclusion of silver in the U.S. critical minerals list has further improved sentiment.
Broader market backdrop
Geopolitical talks between the United States and Ukraine hint at a possible resolution to the conflict, while traders still anticipate two U.S. interest‑rate cuts next year, both factors adding to a supportive environment for commodities like silver.
Takeaway for investors
Hindustan Zinc offers a clear way to benefit from rising silver prices, and the recent stock surge reflects that link. However, commodity markets can be volatile, so it’s wise to monitor both silver trends and the company’s performance.
Remember, this is perspective, not a prediction. Do your own research or talk to a certified financial advisor before making any investment decisions.