A blistering rally in silver has propelled Hindustan Zinc to become India’s biggest metals company by market capitalization, overtaking some of its largest peers, including parent Vedanta.
Its the Silver Boom which has made the Hindustan Zinc most valuable India Metals Firm.
Earlier, three days back, Shares of Hindustan Zinc Ltd, a Vedanta Group company, have captured investor attention, delivering strong returns and hitting new 52-week highs. This impressive performance is not an isolated event but is closely tied to an extraordinary rally in global silver prices. As India’s largest integrated producer of silver, Hindustan Zinc is uniquely positioned to benefit from the metal’s surge, a factor that is reshaping its earnings profile and attracting positive sentiment from market analysts.
he primary catalyst behind Hindustan Zinc’s stock rally is the sharp and sustained increase in silver prices. In late 2025 and early 2026, silver has significantly outperformed other asset classes. International spot prices have crossed the $10 per ounce mark, while on the Multi-Commodity Exchange (MCX) in India, silver futures have surpassed the ₹2.5 lakh per kilogram milestone for the first time. This rally is supported by a combination of powerful factors, including robust industrial demand from the solar energy, electric vehicle (EV), and electronics sectors. Furthermore, a structural supply deficit in the global market and safe-haven buying amid economic uncertainty have tightened supply, pushing prices higher.
Direct Impact on Hindustan Zinc’s Profitability
Hindustan Zinc’s financial performance is highly sensitive to fluctuations in the silver market. Silver is a significant contributor to the company’s profitability, accounting for approximately 40-45% of its Earnings Before Interest and Tax (EBIT). This makes the company a direct proxy for investors looking to gain exposure to the silver upcycle. The surge in silver prices translates directly into higher revenue and improved margins for the company. Analysts estimate that every $1 per ounce increase in silver prices leads to a roughly 1% rise in the company’s EBITDA, highlighting the substantial leverage it has to the precious metal.