Hindustan Zinc is the only pure listed silver play in India. The metal accounts for around 50% to 45% of the firm’s EBIT, which makes the stock highly sensitive to moves in the white metal.
Silver prices traded lower on Tuesday amid rising expectations of a US Federal Reserve interest rate increase and easing geopolitical tensions in the West Asia region, reducing demand for safe-haven assets.
A rising interest rate environment is negative for precious metals as they are not interest yielding assets.
COMEX silver declined 2.4% or $1,573 to $64.010 per ounce. The white metal had touched a high of $65.315 an ounce and a low of $63.910 an ounce during the session.
Silver prices were also pressured by a stronger dollar. The Bloomberg Dollar Spot Index was up 0.2% and had crossed the mark of 101 on Tuesday.
A stronger US Dollar is negative for metals mostly due to the fact that Metals are globally priced in that currency. An appreciating greenback suppresses demand and lowers prices. This also means buyers using other currencies must need to pay more to buy the same amount of metal.
In the March quarter, Hindustan Zinc’s net profit increased 67.6% to ₹5,033 crore from the previous year and it was above a CNBC-TV18 poll of ₹4,650 crore.
Its revenue of ₹13,544 crore was up 49% from last year and was above Street estimates of ₹11,999 crore.
The company’s EBITDA increased 60% to ₹7,706 crore from last year and was above Street expectations of ₹7,117 crore.
Its margins expanded to 56.9% from 53% in the year-ago period and from Street estimates of 59.3%.
Shares of Hindustan Zinc are trading 4.4% lower on Tuesday at ₹547.85. The stock is down 11% so far in 2026.
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