Why Hindustan Zinc Share Price is Rising

Metal stocks were buzzing on 10 December 2025 as the entire pack moved higher after a subdued start to the week.

The Nifty Metal index jumped to 10,198.35, snapping a two-day losing streak and emerging as the top-performing sectoral index in the market.

One stock in the index that has been grabbing the spotlight for its rally is Hindustan Zinc.

The shares of Hindustan Zinc surged nearly 5% on 10 December 2025.

The Vedanta Group company's stock rose to Rs 515 apiece in morning trades, marking its highest level in more than seven weeks.

Here's why

# Silver Hits Lifetime High

Silver hit new all-time highs on 10 December 2025.

Silver futures with March expiry rose around 1.5% to reach a record Rs 1,90,799 per kilogram, while May futures touched Rs 1,93,299 per kg for the first time.

Global spot silver crossed US$60 an ounce for the first time and hovered near US$61, registering a sharp 32% jump in the last 24 hours.

This rally in silver prices is being bolstered by persistently tight supplies and shrinking global inventories, expectations of Federal Reserve rate cuts, and the metal's recent inclusion on the US critical minerals list.

This spike in silver prices fuelled strong buying in Hindustan Zinc.

Since Hindustan Zinc is one of the world's largest integrated silver producers, any surge in silver prices directly lifts its earnings potential.

The company produces refined silver as a by-product of its zinc-lead operations. Its silver bullion, with a minimum purity of 99.9%, is listed on the LBMA Good Delivery List (LGD) from the Pantnagar unit.

The company supplies silver in the form of standard 30 kg bars, 1 kg bars, and silver powder, according to its website.

The sharp rise in silver prices improves Hindustan Zinc's realisations, margins, and overall revenue outlook. With silver hitting fresh all-time highs, the market expects better earnings from the company.

This expectation pushed the stock up nearly 5% on 10 December.

What Next?

According to a research report by the Silver Institute, sectors such as solar energy, electric vehicles and related infrastructure, as well as data centres and artificial intelligence, are set to push industrial demand of silver upward through 2030.

Further, Hindustan Zinc is moving ahead with a major Phase-1 expansion to capture rising metal demand in India. The company plans to increase its refined metal capacity from 1,129 kt to 1,379 kt, led by a 250 kt expansion at the Debari smelter.

Mined metal capacity is also set to rise from 1,180 kt to 1,510 kt, supported by a 330 kt expansion across its mines. This entire integrated capacity expansion involves an investment of around Rs 120 billion (bn) and is expected to be completed by 2QFY29.

In addition, the company is developing India's first zinc tailings reprocessing plant, aimed at converting waste into valuable resources.

With a feed capacity of 10 Mtpa and an investment outlay of Rs 38 bn, the project is expected to be completed by 4QFY28.

How shares of Hindustan Zinc Research have performed recently

Over the past month, Hindustan Zinc shares have gained more than 5%, rising from around Rs 484 to an intraday high of Rs 515 on 10 December 2025.

The company touched its 52-week high of Rs 546.9 on 10 June 2025 and its 52-week low of Rs 378.6 on 3 March 2025.

About Hindustan Zinc

Hindustan Zinc is an India-based energy transition metals company.

The company is engaged in exploring, extracting and processing of minerals and manufacturing of metals and alloys.

Its segments include zinc, lead and silver, and wind energy.

Its operations include five zinc-lead mines, four zinc smelters, one lead smelter, one zinc-lead smelter, eight sulfuric acid plants, one silver refinery plant, six captive thermal power plants and four captive solar plants in the state of Rajasthan.

It has expanded its critical minerals portfolio with two mineral blocks - one for potash and halite and the other for rare earth elements.

To know more, check out Hindustan Zinc's fact sheet and latest quarterly results.

You can also compare Hindustan Zinc with its peers

Hindustan Zinc vs Vedanta

Hindustan Zinc vs Hindalco

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy Investing.

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