It’s a global trend – nervous investors are increasingly evaluating alternative assets amidst US government debt recently crossing $ 40 trillion and the resulting rising bond yields causing intense volatility in global stock markets.
In addition, the tensions in the Middle East have shown no signs of easing despite the recent Versailles, France peace treaty and numerous ceasefire announcements.
And it’s no surprise that investors are once again turning to precious metals, like silver. Global silver prices on Friday trading rose 2% to $ 70 per ounce, and have moved up since the average price of $ 66 per ounce levels in June 2026.
On Monday, global silver prices were at $ 69 per ounce levels.
Local silver prices track global prices – they were at Rs 2.46 lakh per kg levels. Silver prices in Mumbai at the end of June 2026 were Rs 2.21 lakh per 1 kilogram. Indian bullion prices are inflated to the extent of the import duty imposed by the government.
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Silver prices had peaked in Mumbai at Rs 3.18 lakh per kg levels in the third week of January 2026.While silver has wide applications in the industrial sector, in electronics and solar panels, amongst others, it is being increasingly viewed as a ‘safe haven’ asset.
Several well-known investors including the well-recognized market guru, Vijay Kedia have warned investors of sharp volatility in precious metals and its potential negative impact for speculators.
Why Hindustan Zinc is Dalal Street’s Preferred Silver Play
On Dalal Street, Hindustan Zinc, which is among the top 10 silver miners globally, has gained prominence. The stock rose 1.7% to Rs 604.8 in Monday trading, and it had hit a 52-week high of Rs 732.6 on 28 January, 2026.
And despite the volatility in silver prices, the stock has jumped nearly 40% over the past one year compared to a 5% fall in the Sensex. Investors it seems are increasingly looking to play the volatility in silver prices via this stock.
Its board of directors had declared an interim dividend of Rs 11 per equity share on April 24, 2026. In FY26, the company had paid a dividend of Rs 10 per share.
Vedanta is the promoter of Hindustan Zinc holding a 60.71% stake in the metal major at the end of the June 2026 quarter.
Q1 Breakdown: How a 117% Price Surge Delivered Record Margins
Hindustan Zinc sold 149 tonnes of refined silver in the June 2026 quarter as compared to 145 tonnes a year earlier.
In its results presentation, Hindustan Zinc has highlighted an average international price of $73.2 per ounce as compared to $ 33.7 per ounce a year earlier, a rise of 117%.
In the local markets, spot silver prices in Mumbai averaged Rs 2.43 lakh per kg levels as compared to Rs 1.02 lakh per kg levels a year earlier, a rise of 138% y-o-y. Part of this gain can be attributed to an increase in import duties.
Strategic Hedging: Protecting Profitability from Spot Price Shocks
Silver prices in the quarter were significantly higher on a y-o-y basis. However, in its annual report for FY26, Hindustan Zinc has highlighted that as part of its risk management framework, it undertakes strategic hedging for a portion of its annual production, within policy limits, to support greater predictability of revenues, EBITDA, and cash flows and to mitigate adverse price movements.
In line with this practice, the company hedged 59 tonnes of silver at average prices of $ 60 per troy ounce. The above position is intended to provide protection against price volatility, the company has highlighted.
Hindustan Zinc sold 627 tonnes of silver in FY26.
Depending on the commodity derivatives Hindustan Zinc has entered into, the company will leverage the upturn in silver prices, and it may not fully realise the surge in spot silver prices right away.
Strong silver prices helped Hindustan Zinc’s silver division revenues rise nearly 169% y-o-y to Rs 3,839 crore in the June 2026 quarter. The segment profit of the silver division also jumped 170% y-o-y to Rs 3,327 crore.
June 2026 quarter – Hindustan Zinc’s strong financial performance
| Key metric | Value | Y-o-y growth |
| Consolidated net profit | Rs 5,469 crore | 144.8% |
| Silver division revenue | Rs 3,839 crore | 169% |
| Silver segment profit | Rs 3,327 crore | 170% |
| Average silver price (global) | $ 73.2 / oz | 117% |
| Average silver price (Mumbai) | Rs 2.43 Lakh / kg | 138% |
The silver division contributed nearly 27.9% of the company’s consolidated revenues in the quarter. However, it made up 46.2% of total segment profit of Rs 7,200 crore. Hindustan Zinc is also a leading global player in zinc production.
Strong performance of the silver division helped the company’s consolidated net profit rise 144.8% y-o-y to a record Rs 5,469 crore.
Capital Efficiency: Hindustan Zinc’s 76.6% RoE Outpaces Sector Peers
Hindustan Zinc has a consolidated return on equity (RoE) of an impressive 76.6%, according to Screener.in.
Other leading non-ferrous players like Hindalco Industries [RG5] has a 13% consolidated RoE.
Efficiency leader – Hindustan Zinc races ahead of rival
| Non-ferrous company | Consolidated Return on Equity (RoE) (in %) |
| Hindustan Zinc | 76.6% |
| Hindalco | 13% |
Valuation Reality Check: Is the 15.1x P/E Justified?
Hindustan Zinc trades at a consolidated P/E of 15.1 times, according to Screener.in, and over the past 5 years, this stock’s P/ E has varied between 10.4 times and 40.5 times.
Other leading non-ferrous stocks like Hindalco, trades at a consolidated P/ E of 11.4 times, and over the past 5 years, its P/E has varied between 5.4 times and 17.5 times.
| Non-ferrous company | Consolidated P/E (x) |
| Hindustan Zinc | 15.1 times |
| Hindalco | 11.4 times |
Stocks in the metal sector tend to be volatile since they are very exposed to fluctuations in the global economy. Investors could put Hindustan Zinc on their watch list .
Going forward, any surge in silver prices would be a key driver for Hindustan Zinc’s performance. Whether the dream run for silver prices will continue will depend on several global factors. For instance, if the global bond market turmoil and Middle East crisis continues for a significant length of time, it could drive up silver prices higher, going forward, and Hindustan Zinc could also benefit.
However, if some viable solution to the Middle East crisis is found, going forward, then silver prices could come down significantly, and that could negatively impact Hindustan Zinc. The company has a suitable hedging policy to deal with sharp volatility in silver prices.
Disclaimer:
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
Disclosure: The writer and his family have no shareholding in any of the stocks mentioned in the article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.