Wedoany.com Report-Oct. 20, India’s Hindustan Zinc reported a nearly 14% increase in its second-quarter profit on Friday, supported by record silver prices, steady zinc prices, and resilient demand across key markets. The company, India’s largest refined zinc producer, announced that consolidated net profit rose to 26.49 billion rupees (approximately $301 million) for the quarter ended September 30, compared with 23.27 billion rupees a year earlier.

Hindustan Zinc is the world’s third-largest silver producer and India’s top integrated silver manufacturer. The country remains the world’s biggest silver consumer, driven by both investment demand and industrial usage. During the September quarter, silver demand in India rose sharply as investors turned to the metal as an alternative to gold, supported by its record-high prices and expanding applications in manufacturing. Analysts estimated that silver prices surged between 32% and 39% year-on-year during the quarter.

Zinc prices also recorded moderate growth, with analysts estimating an increase of around 2% during the same period. Domestic demand for zinc, which is primarily used to coat steel and prevent corrosion, remained strong, supported by rising industrial production and infrastructure activity across India.

Hindustan Zinc said revenue from its zinc operations grew about 2%, while silver operations recorded a 10% rise in the quarter. Total revenue from operations reached 85.49 billion rupees, marking an overall increase of 3.6% from the previous year. The company’s performance reflected its ability to sustain growth despite price volatility in global metals markets.

The company’s management attributed the profit rise to favorable commodity prices, cost optimization, and steady domestic demand. Strong silver prices, in particular, provided a significant boost to earnings, reinforcing the company’s position as a key contributor to India’s precious metals output.

Hindustan Zinc continues to dominate the domestic zinc market, accounting for nearly three-fourths of total production. The company also benefits from an integrated business model that supports both mining and refining operations, enabling cost efficiencies and stable supply to domestic industries.

India’s expanding infrastructure and manufacturing sectors have continued to drive consumption of zinc and related materials. The sustained demand outlook, along with favorable market prices for both silver and zinc, positions Hindustan Zinc for continued profitability in upcoming quarters.

As one of the major global producers of silver and zinc, the company’s performance reflects the broader strength of India’s industrial and investment metals market. The combination of rising silver consumption, stable zinc demand, and efficient operational management has enabled Hindustan Zinc to deliver steady growth despite a dynamic global commodity environment.