Large Cap Stock Jumps On Record Metal Output; Check How Its Silver Production Performed

Synopsis: Hindustan Zinc reported a record 315 kt quarterly metal output, driven by strong zinc growth (up 6% YoY), while silver production declined due to lower lead output and mining-related factors.

World’s largest integrated zinc producer with ~75 percent market share in India’s primary zinc market and among the top 5 global silver producers, is in focus as it jumps in the overall weak market trend and sentiment after reporting its Q4 business update with contrasting zinc and silver production levels.

With a market capitalisation of Rs. 2.20 Lakh Crore, the shares of Hindustan Zinc are trading at Rs. 521, up by 1 percent from its previous closing of Rs. 515.60. The stock after today’s opening made a high of Rs. 527, which is 2.11 percent up. Stock’s past 1 year return stands at 30 percent with 5 year return standing at an underperforming 70 percent. 

Zinc, Lead & Silver Production Update

The company had its best-ever quarterly metal production at 315 Kilotonnes (Kt), which was driven by higher ore production & better grades. Better grades mean that the ore contained more metal per unit, so more metal could be extracted.

Refined zinc reported Q4 FY26 production of 227 kt, registering a 6 percent YoY growth (vs 214 kt). On a full-year basis, FY26 production stood at 851 kt, up 3 percent YoY (vs 827 kt). Refined lead reported Q4 FY26 production of 55 kt, showing a 2 percent YoY decline (vs 56 kt). For the full year, FY26 production came in at 197 kt, down 13 percent YoY (vs 225 kt).

Silver production stood at 176 tonnes in Q4 FY26, reflecting a marginal 0.2 percent YoY decline (vs 177 tonnes). On a full-year basis, FY26 production was 627 tonnes, down 9 percent YoY (vs 687 tonnes).

Wind power generation stood at 56 million units in 4Q FY26, reflecting an 11 percent YoY decline (vs 63 million units). On a full-year basis, FY26 generation was 372 million units, up 7 percent YoY (vs 348 million units).

Reason for Increase & Decrease

Hindustan Zinc’s production performance in FY26 was driven by a strong increase in zinc output, while lead and silver saw declines due to operational and mining factors. The rise in zinc production was primarily supported by the commissioning of debottlenecking projects at Chanderiya and Dariba, the addition of a 160 ktpa roaster, improved operational efficiency, and higher plant availability, along with pyro operations running in zinc-lead mode for the full year.

In contrast, lead production declined due to lower plant availability and a shift in operational mode, as the previous year had higher operations in lead mode while FY26 saw only partial lead-mode operations. 

Consequently, silver production also fell, as it is a by-product of lead; the decline was further impacted by lower silver input from mines and changes in mining sequence. Overall, while zinc growth remained strong due to capacity and efficiency gains, the decline in lead and silver was largely operational and input-driven.

Financial Highlights

On a QoQ basis (Sep 2025 to Dec 2025), the company reported strong growth across key metrics, with sales rising from Rs. 8,549 crore to Rs. 10,980 crore (up 28.4 percent), while operating profit increased from Rs. 4,445 crore to Rs. 6,054 crore (up 36.2 percent). This led to an improvement in operating margins from 52 percent to 55 percent, reflecting better efficiency, and net profit surged from Rs. 2,649 crore to Rs. 3,916 crore (up 47.8 percent), indicating strong operating leverage.

On a YoY basis (Dec 2024 to Dec 2025), sales grew from Rs. 8,614 crore to Rs. 10,980 crore (up 27.5 percent), while operating profit rose from Rs. 4,499 crore to Rs. 6,054 crore (up 34.6 percent). Margins expanded with OPM improving from 52 percent to 55 percent, and net profit increased from Rs. 2,678 crore to Rs. 3,916 crore (up 46.2 percent), highlighting robust profitability growth ahead of revenue.

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