Silver Price Surge Lifts Hindustan Zinc Profits

Hindustan Zinc's profits have been boosted significantly by rising silver prices. In Q1FY27, the company produced 149 tonnes of silver, with its precious metals portfolio contributing around 46 percent of overall profitability.

The contribution to profitability has increased from 41 percent in Q1FY26, when Hindustan Zinc produced the same amount of silver but at a much lower price. The average silver price rose sharply over the year, increasing from $33.7 per ounce in Q1FY26 to $73.2 in Q1FY27.

The company's dependence on silver prices has created an interesting mismatch between production levels and revenue growth. While Hindustan Zinc produced the same amount of silver in Q1FY27 as it did a year earlier, its revenue from silver jumped by 169 percent to Rs. 3,839 crore, due to the increase in prices.