The year 2025 has witnessed a spectacular and historic rally in silver, capturing the imagination of investors worldwide and decisively outperforming its traditional counterpart, gold. This remarkable surge has been highlighted by Vedanta Group Chairman Anil Agarwal, who declared that silver has finally emerged from gold's shadow and is entering a long-term structural bull phase, fueled by its critical role in modern technology.
The Meteoric Rise: Silver's Stunning Performance
In a social media post on platform X, Anil Agarwal underscored the scale of the rally. Silver has appreciated by a staggering 125% in dollar terms year-to-date in 2025. In stark contrast, gold, despite a strong performance, gained 63% over the same period. "This year, silver has emerged from the shadow of its precious metal sibling, gold. What a year for silver," Agarwal stated.
This rally continued its momentum on Wednesday, December 24. In the domestic market, MCX silver March futures contracts surged nearly 2% to hit a fresh all-time high of ₹2,23,742 per kilogram. Simultaneously, MCX gold February futures advanced 0.40% to a record ₹1,38,428 per 10 grams.
Beyond Precious Metal: The Dual-Demand Driver
Agarwal attributed silver's growing importance to its unique dual nature. "The silver story is just beginning. It is unique because it is the only metal which has an intrinsic value and also a functional demand," he explained. He emphasized that emerging technologies are now key long-term consumption drivers.
"New technologies, whether in solar cells or defence, use silver as a key component," Agarwal noted, adding that as India's sole silver producer, Vedanta has witnessed this demand firsthand at its subsidiary, Hindustan Zinc. He expressed strong confidence in the metal's future, stating, "Prices will go up and down, but silver’s extraordinary shine is here to stay."
Silver: A Major Profit Engine for Vedanta's Hindustan Zinc
The price rally has translated into significant financial gains for Vedanta Group. Hindustan Zinc, one of the world's top five silver producers, reported robust results for the quarter ended September 2025.
The company posted a consolidated profit after tax of ₹2,649 crore, marking a 19% sequential increase. Crucially, silver contributed nearly 40% of the overall profits, amounting to approximately ₹1,060 crore. Revenue from silver stood at ₹1,706 crore for the quarter, reflecting a 10% rise from the previous quarter and a 20% jump year-on-year. This growth was propelled by higher global prices and stable operations, with silver being produced as a by-product of lead and zinc mining.
Vedanta's Demerger: Creating 'Five More Vedantas'
In related developments, Agarwal recently discussed the group's proposed demerger, approved by the National Company Law Tribunal (NCLT). The plan involves splitting Vedanta into five separate listed entities to sharpen operational focus, unlock value, and ensure consistent cash returns to shareholders without affecting capital expenditure plans.
Post-demerger, Vedanta Ltd will retain the base metals business. Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy (holding the oil and gas business) will be listed independently. "Vedanta is like a big banyan tree. Each business has the potential to become a banyan tree by itself," Agarwal said, envisioning each entity becoming as large as Vedanta in revenue. Shareholders will receive one share of each demerged entity for every Vedanta share held.
Reiterating his commitment to shareholder returns, Agarwal asserted, "Dividend is in my blood. No matter what happens, there will always be a dividend payout by our companies." The demerger is expected to be completed by March 2026, aligning with the group's planned $20 billion investment over the next four to five years.
