Hindustan Zinc Shares End February With 17% Drop As Silver Rates Fall 16%; Buy In March?

Hindustan Zinc share price ended the month of February 2026, on a bearish note. The large-cap metal stock recorded nearly a 16% decline as silver rates in India dropped significantly by 16% during February. Hindustan Zinc posted strong Q3 earnings for FY26 due to robust volumes in silver production. However, silver has been trading volatile since late-January and Hindustan Zinc shares have been following a similar trend. Should you buy this heavyweight stock in March 2026?

Hindustan Zinc Share Price:

On NSE, the stock price closed at Rs 604.40 apiece after closing hours of February 27th which of the last trading day of that month. The data of NSE showed that Hindustan Zinc's 1 month performance is down by nearly 16.7%. The company's market cap stood at Rs 2,55,378.28 crore.

The stock has corrected significantly from its 52-week high of Rs 733 apiece which was recorded on January 27, a day ago before silver rates hit its new all-time high of Rs 4.10 lakh on January 29 before starting its steepest correction.

YTD, Hindustan Zinc stock is down by 1.23%, while in a year, the stock outperformed benchmarks with nearly 47% upside thanks to silver's strong rally in 2025.

Silver Rates In India:

Silver rate in India ended the month of February at Rs 2.95 lakh per 1Kg, registering a decline of 15.7% for the month. This comes after silver had outperformed gold in January 2026 with a strong gains of 47%.

Hindustan Zinc Corporate Actions:

This Vedanta-backed company has a history of steady dividend payouts, while the company has delivered one bonus and split.

Bonus Issue: The metal company has delivered only one bonus issue. In March 2011, HZL has paid 1:1 bonus shares. This meant 1 free share against 1 existing share.

Stock Split: Meanwhile, HZL has split only once. In March 2011, the company subdivided its shares in the ratio of 1:5, where the face value has split from Rs 10 each to Rs 2 each.

Dividends: Since August 2003, the company paid about 39 dividends, as per Trendlyne data. In the last 12 months, the company distributed up to Rs 10 dividend per share. It has a dividend yield of 1.66%.

Buy Hindustan Zinc Share Price In March 2026?

During Q3 of FY26, HZL recorded best ever third quarter mined metal production at 276 kt driven mainly by higher ore production. Further, the company posted record third quarter refined metal production at 270 kt driven by commissioning of debottlenecking projects at Chanderiya & Dariba, ramp up of 160 Ktpa roaster at Debari and better plant availability. Refined lead production lower by 11% YoY mainly on account of 'pyro operations on lead only mode' in previous period.

Also, saleable silver production at 158 metric tonnes, up 10% QoQ in line with lead production. Meanwhile, in Q3FY26, wind power generation at 50 MU, up 5% YoY in line with wind velocity.

During 9MFY26, the company posted highest ever nine months mined metal production at 799 kt, on account of higher ore production, better grades & improved recoveries. Its refined zinc production at 624 kt, up 2% YoY majorly in line with plant availability.

According to analysts at Systematix Group, HZL During 9MFY26, the company posted highest ever nine months mined metal production at 799 kt, on account of higher ore production, better grades & improved recoveries. Its refined zinc production at 624 kt, up 2% YoY majorly in line with plant availability. Also, the company's management reiterated silver volume guidance of 680 tons +/-10 tons for FY26, expecting
robust volumes in 4Q to bring it close to the guided range.

That being said, HZL is among Systematix's top pick after Q3 results in the metal sector. The brokerage has set a target price of Rs 755 with Buy recommendation.

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