Hindustan Zinc shares jump 7% in two sessions. What’s triggering the rally?

Shares of Vedanta-owned Hindustan Zinc rose as much as 4% to a day's high of Rs 595.30 on Friday, extending gains for a second straight session and taking the two-day advance to 7%.

The gains came after silver prices rose for a third straight session. MCX silver jumped Rs 13,000 per kg to Rs 2,45,158, supported by a weaker dollar and efforts by the U.S. Treasury Department to keep longer-term yields under control. The U.S. dollar was headed for a weekly decline, making dollar-priced commodities more affordable for holders of other currencies.

On the global stage, Hindustan Zinc ranks among the leading silver producers, with annual output of 22.5 million ounces — ahead of Grupo Mexico’s 12.1 million ounces and not far from top players such as Fresnillo at 52.5 million ounces and Newmont at 28 million ounces. The company also operates in the lowest quartile of the global zinc cost curve and has a mine life of about 25 years.


Silver may have lost some of its shine after a stellar run earlier this year, but the white metal continues to lead all major asset classes on a five-year annualised return basis. Despite investors booking profits after silver surged to $122 in January amid soaring oil prices and renewed concerns over interest rate hikes, the metal has delivered a five-year CAGR of 27%.

Will silver bounce back again?

Fundamentally, silver continues to enjoy strong tailwinds. Demand from sectors such as solar energy, electric vehicles and electronics remains robust, while supply-side constraints support its constructive medium- to long-term outlook. That said, its higher volatility cannot be ignored. Experts suggest a staggered accumulation strategy may be more prudent, allowing investors to balance its higher return potential with the need for risk management.

“We reiterate investing in silver over supportive fundamentals and market uncertainties. Any decline in prices due to a dollar rally or easing of tensions provides an opportunity to accumulate or invest in silver,” Tata Mutual Fund said in a report.

The report added that corrections after a sharp and extended rally are natural and do not weaken the long-term bullish outlook for precious metals. In silver’s case, the structural fundamentals remain firmly in place despite the recent pullback.

Hindustan Zinc Q1

The Vedanta Group company reported a 145% year-on-year (YoY) surge in net profit to Rs 5,469 crore for the first quarter of FY27.

Its revenue from operations rose around 77% YoY to Rs 13,747 crore during the quarter under review, from Rs 7,771 crore reported in the same period last year. Total expenses increased by over 33% YoY to Rs 6,749 crore during the quarter, which ended on June 30, 2026.

The Vedanta Group company’s net profit margin improved to 40% in the April-June quarter of FY27, from 37% in the previous quarter (Q4 FY26) and 29% in the year-ago period (Q1 FY26). Operating margin, meanwhile, increased to 52% during the quarter under review.

The metal major’s net worth also more than doubled year on year, rising around 108% to Rs 23,587 crore at the end of the June quarter of FY27. Its debt-to-equity ratio stood at 0.32 times, as against 1.19 times in Q1 FY26.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)