Hindustan Zinc shares jump 5% as soaring silver prices boost Q3 results: Should you buy, sell or hold?

Hindustan Zinc share price

• Hindustan Zinc shares reach record high after strong Q3 results and broker upgrades.
• Q3 net profit up 46.5% YoY to Rs 3,879 crore; revenue increased 27.5% YoY
• Brokerages split on stock; HSBC and Jefferies bullish, Citi and Nuvama cautious

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The shares of Hindustan Zinc rose more than 5 percent to fresh record high on January 20 as brokerages issued positive notes for the Vedanta Group company after it released results for the third quarter of the ongoing financial year 2026.

The shares of the company hit a new 52-week high of Rs 696.90 apiece in the morning trading hours of Tuesday.

Hindustan Zinc Q3 results:

Hindustan Zinc on January 19 reported a standalone net profit of Rs 3,879 crore for the October-December quarter of FY26. This marked a 46.5 percent year-on-year (YoY) rise from the Rs 2,647 crore net profit reported in the corresponding quarter of the previous financial year.

Revenue from operations meanwhile rose 27.5 percent YoY to Rs 10,922 crore during the quarter under review, as against a revenue of Rs 8,556 crore in the year-ago period.

EBITDA increased 34.7 percent YoY to Rs 6,055 crore, while EBITDA margin expanded to 55 percent from 52 percent a year ago, supported by lower zinc cost of production and improved operating leverage.

According to the company, Q3 marked its highest-ever quarterly revenue and profit, driven by higher metal production, stronger zinc and silver prices, and a sharp reduction in costs.

Soaring silver prices:

Silver prices hit fresh lifetime highs today, as tensions between US and EU simmered over President Donald Trump’s constant threats to annex Greenland. Silver futures with March expiry gained around 3 percent to hit a fresh all time high of Rs 3,18,729 per kilogram.

The future contracts with May and July expiries meanwhile rose more than 3 percent to hit fresh lifetime highs of Rs 3,28,854 per kilogram and Rs 3,35,885 per kilogram, respectively.

Hindustan Zinc is the largest producer of silver in India, and produces refined silver with a minimum 99.9 percent purity.

HSBC on Hindustan Zinc:

HSBC kept a ‘Buy’ call on the shares of Hindustan Zinc, with a target price of Rs 750 per share. This implies an upside potential of nearly 14 percent from the stock’s previous closing price of Rs 660.4 apiece.

The company’s Q3 earnings beat estimates due to higher volumes and lower costs, HSBC said. It added that strong silver prices should further lift earnings. The firm expects Q4 results to be even stronger due to higher volumes and sharply higher silver prices.

Jefferies on Hindustan Zinc:

Jefferies raised its target price for the stock to Rs 750 per share, while maintaining its ‘Buy’ rating. The latest target price implies an upside potential of nearly 14 percent from the previous closing price.

The international brokerage said that the firm benefitted from rising silver and zinc prices. It raised FY26-28 EPS estimates by 3–10 percent, as costs remain under control. It expects the company to post 47 percent YoY EPS Growth in FY27, followed by 6 percent In FY28.

Jefferies further said that Hindustan Zinc’s valuation at 9.4x FY27 EV/EBITDA as against a long-term average of 7.3x is justified by rising silver share in EBIT.

Citi on Hindustan Zinc:

Citi however kept its ‘Sell’ call on the stock with a target price of Rs 585 per share, which implies a downside potential of more than 11 percent from the stock’s previous closing price.

The firm said that Hindustan Zinc’s Q3 EBITDA rose 35 percent YoY driven by better silver prices, lower costs & higher volumes. The company is targeting 2 percent refined volume growth in FY26 & CoP of $1,000.

Nuvama on Hindustan Zinc:

Nuvama kept a ‘Reduce’ call on Hindustan Zinc shares, with a target price of Rs 591 apiece. This implies a downside potential of more than 10.5 percent over the stock’s previous closing price.

The international brokerage said that the firm’s Q3 EBITDA was in-line with its estimates. Silver EBIT surged 56 percent QoQ, and accounted for 44 percent of EBIT.

Nuvama lifted its EBITDA estimates by 28 percent for FY27 and 21 percent for FY28, assuming that the average zinc and silver prices of $3,000 and $60 for FY27, and $2,900 and $55 for FY28, respectively.

The firm however said that Hindustan Zinc’s valuation is expensive at 11.1x FY28 EV/EBITDA.

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