YES Securities expects the high-margin silver vertical to play an increasingly important role in Hindustan Zinc Ltd’s (HZL) earnings growth in the coming years. It said HZL’s silver segment has emerged as a key earnings pillar with global silver supply under pressure and rising industrial demand—particularly from photovoltaic (PV) cell manufacturing. Prices are likely to remain firm over the medium term.
HZL targets silver production of approximately 800 tonnes per annum, with output projected to reach 752 tonnes by FY27, representing a compound annual growth rate (CAGR) of 4.6% over FY25–27. Revenue from silver is expected to grow at 9% CAGR, while EBIT contributions rise at 7.4% CAGR during the same period.
“Given its superior margins and structural demand tailwinds, the silver business is well-positioned to sustain profitability growth and become a core contributor to HZL’s earnings expansion,” YES Securities said in a research note.
While silver volumes declined in FY25, the brokerage expects a rebound as HZL’s fumer plant ramps up, with production projected to reach 750 tons by FY27. For FY26, management has guided for 700–710 tons of silver output.
In FY27, YES Securities expects incremental gains of 30 tons as the fumer operates at optimal levels. This rampup should significantly boost both topline and profitability, reinforcing silver’s role as a core growth engine, it adds.
HZL is India’s largest and one of the world’s leading integrated silver producers. It produces refined silver; recovered as a by-product of zinc-lead facility.
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