Shares of Hindustan Zinc tumbled as much as 6% to their day’s low of Rs 485 on the BSE on Monday after silver prices plunged by about Rs 14,000, as rising tensions in the Middle East and inflation concerns driven by higher crude oil prices strengthened expectations of elevated global interest rates.

On the MCX, silver futures due May 2026 were down Rs 13,606 or 6% to Rs 2,13,166 per kg. Hindustan Zinc shares have slipped 17% in the last one month and declined 30% from their 52-week high of Rs 733 hit in January this year.

The negative sentiment also comes after state-run oil companies raised diesel prices for bulk buyers, excluding state transport corporations, by about Rs 22 per litre, or around 25%, to partly offset surging crude rates, reflecting the escalating impact of the Iran conflict on India’s energy sector.

Silver is widely used in industries such as solar panels, electronics and manufacturing. Higher diesel prices raise overall industrial costs and can slow economic activity, which may reduce demand for silver in the short term.

On the global stage, Hindustan Zinc ranks among the leading silver producers, with annual output of 22.5 million ounces, ahead of Grupo Mexico’s 12.1 million ounces and behind top players such as Fresnillo at 52.5 million ounces and Newmont at 28 million ounces. The company also operates in the lowest quartile of the global zinc cost curve and has a mine life of about 25 years.

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Hindustan Zinc Q3 snapshot

The company reported its highest-ever quarterly topline and bottomline growth in the December quarter, backed by a 4% year-on-year growth in its mined metal production. The Vedanta arm’s consolidated net profit jumped 46% to Rs 3,916 crore compared to Rs 2,678 crore in the year-ago period.The company’s total revenue from operations in Q3FY26 was also its highest-ever quarterly revenue at Rs 10,980 crore, up 27% from Rs 8,614 crore posted in the corresponding quarter of the previous financial year.

Its mined metal production in the quarter under review stood at 276 Kt, its highest-ever for the third quarter, up 7% quarter-on-quarter.

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