Silver price comes to HZL's rescue

Skyrocketing Hindustan Zinc’s earnings jumped sharply in Q3FY26 driven by the steep rally in silver prices

- Ashish Agrawal [e-mail]

Hindustan Zinc Ltd (HZL) shares have gained over 3% since the company reported a notable improvement in its financials for Q3FY26 on Monday. Consolidated revenue and Ebitda grew by 27% and 35% year-on-year (yo-y) to %l1,000 crore and 26,054 crore.

Growth was aided by higher silver and zinc prices, lower cost of production and marginally higher volumes. Recall that lower realization for zinc and lead, and decline in volumes for lead and silver had weighed on HIFY26 performance. Thus, HZL’s revenue and Ebitda growth for 9MFY26 is slower than Q3, at 9% and 14%.

Q3 performance was buoyed by the rally in silver prices, led by significant growth in industrial demand. Average prices at LBMA (previously London Bullion Market Association) was $54.70 per ounce in Q3, up 39% sequentially and 74% yo-y. US’s inclusion of silver in its list of critical minerals in November may have raised demand.