Silver’s Shine Here to Stay
Anil Agarwal, Chairman of Vedanta Group, recently drew attention to silver’s remarkable surge in 2025, highlighting its increasing importance within the company’s profit structure. As technological demand escalates, silver is emerging as a key long-term growth asset, stepping out of gold’s shadow.
A 125% Appreciation Year-to-Date
In a post on social media platform X, Agarwal noted that silver has achieved an impressive 125% appreciation in dollar terms so far this year, significantly outperforming gold, which has risen 63% during the same period. While both precious metals enjoyed gains, silver’s performance underscores a notable shift in investor and industrial interest.
Silver as a Long-Term Investment Driver
Agarwal expressed optimism about silver’s future, suggesting that its current trajectory is just the beginning of a long-term structural phase influenced by technology. Key points include:
– Technological Demand: New sectors such as solar energy and defense rely heavily on silver, enhancing its intrinsic value and functional demand.
– Vedanta’s Unique Position: As India’s only silver producer, Vedanta Group benefits directly from this trend, particularly through its operations at Hindustan Zinc.
“Prices will fluctuate, but silver’s extraordinary shine is here to stay,” Agarwal stated, emphasizing the metal’s ongoing value.
Financial Highlights of Hindustan Zinc
Silver has become a significant profit driver for Vedanta Group, particularly through its mining arm, Hindustan Zinc. The latest financial data reveals:
– For the quarter ending September 2025, Hindustan Zinc reported a consolidated profit after tax of ₹2,649 crore, a 19% sequential increase.
– Silver contributed nearly 40% of the company’s overall profits during this period, adding approximately ₹1,060 crore to the bottom line.
– The company achieved silver revenue of ₹1,706 crore, reflecting a 10% quarter-on-quarter and 20% year-on-year increase driven by higher global prices.
Strategic Benefits for Vedanta
Silver production occurs as a by-product during the mining and refining of lead and zinc ores, making its contribution to earnings increasingly vital, especially as prices strengthen. The growing share of silver profits offers a natural hedge against volatility in base metal prices, ultimately boosting margins since production costs are largely managed within zinc and lead operations.
As one of the world’s top five silver producers, Hindustan Zinc stands poised to capitalize on the favorable trends that Agarwal has highlighted. The emphasis on silver’s rising demand reaffirms its role as a reliable growth driver for Vedanta Group’s future.
In conclusion, silver’s resurgence not only benefits investors but also positions Vedanta Group advantageously in a rapidly evolving market landscape. The ongoing shift in demand signifies that silver’s shine is indeed here to stay.