Silver touched ₹1,04,000 per kilogram in the spot market. Traders increased their bets amid strong technical cues and global uncertainty, pushing the price to record levels.
Key drivers behind the price spike include escalating trade tensions, which are boosting demand for safe-haven assets, and a weaker US dollar, which has made silver more attractive to international buyers.
The silver market remains buoyant, supported by strong industrial demand from sectors such as renewables, automotive, electronics, and 5G.
Hindustan Zinc is India’s only primary producer of Silver. It is among the top five global silver producers, having climbed from the 23rd position a decade ago.
Although Hindustan Zinc’s silver production declined in FY25, the company has guided for a recovery to 700 tonnes in FY26.
According to the FY25 EBIT breakdown, precious metals, predominantly silver, accounted for 38% of earnings.
Management has indicated that a 10% increase in commodity prices could boost EBITDA by ₹550–575 crore annually. For context, the average silver price last year was approximately $30 per ounce.
Hindustan Zinc reported March quarter results on April 25, which were higher on a year-on-year basis, as well as when compared to estimates from a CNBC-TV18 poll.
The company reported revenue of ₹9,087 crore, which was higher than the CNBC-TV18 poll of ₹8,853 crore. On a year-on-year basis, the numbers were up 20%.
Net profit for the company grew by 47% from the same quarter last year to ₹3,003 crore, which is well above the CNBC-TV18 poll of ₹2,615 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) at the end of the March quarter stood at ₹4,820 crore for Hindustan Zinc, a growth of 32% from the year-ago quarter. A CNBC-TV18 poll had projected the figure to be ₹4,503 crore.
EBITDA margin for the quarter expanded by nearly 500 basis points to 53% from 48.3% last year. A CNBC-TV18 poll had projected a figure of 50.9%.
The management had said that silver may see sustained deficit in the near-future due to growing industrial use, supported by renewable energy and other emerging uses in automotive, electronics, and 5G applications.
Hindustan Zinc shares settled 6% higher on Thursday at ₹496.10. The stock has risen 12% so far in 2025.
