Hindustan Zinc Shares Jump 2% As Soaring Silver Prices Lift Q3 Performance: Buy, Sell Or Hold?

Hindustan Zinc Share Price: Shares of Hindustan Zinc surged more than 2 percent to a fresh record high on January 20 after brokerages issued largely positive reports following the Vedanta Group company’s strong Q3 FY26 results.

The stock touched a new 52-week high of Rs 674.30 in early trade on Tuesday.

For the October–December quarter, Hindustan Zinc reported a standalone net profit of Rs 3,879 crore, marking a 46.5 percent year-on-year jump from Rs 2,647 crore in the same quarter last year. Revenue from operations rose 27.5 percent YoY to Rs 10,922 crore compared with Rs 8,556 crore a year ago.

EBITDA climbed 34.7 percent YoY to Rs 6,055 crore, while margins expanded to 55 percent from 52 percent, aided by lower zinc production costs and better

operating leverage.

The company said Q3 was its highest-ever quarterly revenue and profit, driven by higher metal production, stronger zinc and silver prices, and a sharp decline in costs.

Silver prices at record highs

Silver prices touched fresh lifetime highs on January 20 as tensions between the US and the EU intensified over President Donald Trump’s repeated threats to annex Greenland. March silver futures rose about 3 percent to a record Rs 3,18,729 per kg.

May and July contracts also gained over 3 percent, hitting all-time highs of Rs 3,28,854 per kg and Rs 3,35,885 per kg, respectively.

Hindustan Zinc is India’s largest silver producer, refining silver with a minimum purity of 99.9 percent.

Brokerage views

HSBC maintained a Buy rating with a target price of Rs 750, implying nearly 14 percent upside from the previous close of Rs 660.40. It said Q3 earnings beat estimates on higher volumes and lower costs, and expects Q4 performance to strengthen further on higher volumes and elevated silver prices.

Jefferies also retained a Buy call and raised its target to Rs 750. The brokerage increased FY26–28 EPS estimates by 3–10 percent, citing controlled costs and rising metal prices. It expects EPS to grow 47 percent YoY in FY27, followed by 6 percent growth in FY28. Jefferies added that the stock’s valuation of 9.4x FY27 EV/EBITDA versus the long-term average of 7.3x is justified by silver’s rising contribution to EBIT.

Citi, however, maintained a Sell rating with a target of Rs 585, indicating over 11 percent downside. It noted that Q3 EBITDA rose 35 percent YoY due to higher silver prices, lower costs and stronger volumes. The company is targeting 2 percent refined volume growth in FY26 with cost of production of $1,000.

Nuvama reiterated a Reduce rating with a target of Rs 591, implying more than 10.5 percent downside. It said Q3 EBITDA was in line with estimates, with silver EBIT surging 56 percent QoQ and accounting for 44 percent of total EBIT. Nuvama raised its EBITDA estimates by 28 percent for FY27 and 21 percent for FY28, assuming average zinc and silver prices of $3,000 and $60 for FY27, and $2,900 and $55 for FY28. However, it flagged valuations as expensive at 11.1x FY28 EV/EBITDA.