Silver Surges 125% YTD, Boosting Vedanta Profits and Investor Returns

Silver has shot up dramatically in 2025, gaining about 125% in U.S. dollars so far, while gold has risen around 63%.

Silver’s 2025 rally outpaces gold

The metal hit a fresh all‑time high on Dec 24, with the MCX March contract climbing close to 2% to ₹2,23,742 per kilogram. Gold also set a new record, but silver’s jump has been steeper.

Why silver is gaining momentum

Silver is unique because it serves both as a store of value and as an industrial material. New technologies—such as solar panels, electric‑vehicle batteries, and defense equipment—use a lot of silver, boosting demand.

• Solar‑energy modules rely on silver for efficient electricity conversion.
• Electronics and EVs need silver for wiring and connectors.
• Defense applications use silver in advanced alloys.

These trends give silver a “dual‑nature” advantage that many analysts see as a long‑term growth driver.

Impact on Vedanta and Hindustan Zinc earnings

Vedanta’s mining arm, Hindustan Zinc, is one of the world’s top five silver producers. In the quarter ending Sept 2025, the company posted a profit after tax of ₹2,649 crore, a 19% rise from the previous quarter. Silver contributed roughly 40% of that profit—about ₹1,060 crore.

Revenue from silver grew 10% quarter‑on‑quarter to ₹1,706 crore and 20% year‑on‑year, driven by higher global prices and steady production.

Vedanta’s demerger and dividend focus

Vedanta plans to split into five listed companies—base metals, aluminium, power, steel & iron, and oil‑gas—by March 2026. Shareholders will receive one share of each new entity for every Vedanta share they own.

The group says the split will sharpen focus, unlock growth and keep cash flowing to investors. The chairman emphasized that dividends will continue, describing “dividend is in my blood.”

Bottom line for investors

Silver’s strong price rise is boosting earnings for major producers like Hindustan Zinc and could keep the metal in focus for investors looking for both commodity exposure and industrial growth. At the same time, Vedanta’s upcoming demerger aims to give each business more freedom to grow while promising steady dividend payouts.

Remember, this is just an overview, not a recommendation. Do your own research or talk to a financial advisor before making any investment decisions.