Shares of Hindustan Zinc Ltd. climbed to a 52-week high of ₹674.30 on the NSE in early trade on Tuesday, before turning flat at ₹659.70 at 9:54 am, compared with the previous close of ₹660.40.
The stock’s rally comes amid a sharp rise in global white metal prices, which have touched all-time highs due to escalating geopolitical tensions.
The Vedanta Group company reported a strong set of numbers for the quarter ended December 2025, posting a standalone net profit of ₹3,879 crore, marking a jump of over 46 per cent from ₹2,647 crore in the same quarter last year.
The total revenue from operations increased 28 per cent to ₹10,922 crore in the said quarter from ₹8,556 crore in Q3FY25.
The earnings growth was largely driven by elevated zinc and silver prices and an improvement in production volumes.
With global zinc and silver prices hovering, Hindustan Zinc stands to benefit from improved realisations and cost efficiencies. While some brokerages see limited near-term upside due to valuation concerns, others remain constructive on the company’s long-term growth prospects and expansion strategy.
Motilal Oswal said HZL delivered a robust earnings performance in the third quarter of FY26, led by favourable metal prices and a recovery in volumes.
The brokerage noted that the company’s focus on higher production output and tighter cost controls has helped sustain margins. It added that the recently announced expansion plans support the company’s long-term goal of doubling capacity and improving earnings visibility.
However, Motilal Oswal cautioned that near-term growth may remain capped, with further upside dependent on inflation in LME metal prices. It has raised its FY26 earnings estimates and reiterated a neutral rating at ₹720 target price.
JM Financial maintained a positive stance on the stock after the company reported a consolidated EBITDA of ₹6,050 crore, higher than its expectations. The brokerage highlighted that EBITDA rose around 36 per cent quarter-on-quarter, aided by higher LME zinc and silver prices and a decline in cost of production.
It also pointed to the company’s guidance on sustaining lower zinc production costs, plans to hedge part of its annual volumes, and ongoing investments in renewable energy that are expected to generate significant cost savings.
Given Hindustan Zinc’s position at the lower end of the global cost curve and its increasing contribution from silver sales, JM Financial revised its earnings estimates upward and retained its buy call with a revised target price of ₹770 per share.
Nuvama Institutional Equities said higher commodity prices have strengthened the company’s earnings profile, with EBITDA rising around 36 per cent sequentially in the quarter under review.
It noted that silver contributed nearly 44 per cent of EBIT, reflecting the sharp rise in silver prices. The brokerage also said the company’s hedging strategy offers downside protection. Despite lifting its target price to ₹591 per share, Nuvama reiterated a reduce rating, citing expensive valuations at current levels.
Published on January 20, 2026
