HEG Advanced Materials Limited(HEG)

NSE: HEGBSE: 509631

₹ 199.4-3.09%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 6,576 crNext results: 3 Nov 2026Website: www.hegltd.comUpdated: 25 Oct 2026

About

HEG Advanced Materials Limited manufactures UHP and HP graphite electrodes at Mandideep, Madhya Pradesh, operating the world's largest single-site graphite electrode plant with 100,000 tonnes per annum installed capacity. The company is the third-largest graphite electrode producer in the Western world and reported standalone revenue of ₹2,569 crore in FY26. It is the flagship company of the LNJ Bhilwara Group, listed on BSE and NSE, and is diversifying into battery anode materials and energy-transition businesses through a pending composite demerger.^[1][2][3]

Business segments

Graphite electrodes constitute 98.6% of segment revenue in FY26, at ₹2,539.56 crore; the company has a single reported segment.^[4]
HEG manufactures UHP (Ultra High Power) and HP (High Power) graphite electrodes that power Electric Arc Furnaces used in the global steel industry.^[1]

Manufacturing and capacity

Main plant at Mandideep, near Bhopal, Madhya Pradesh; installed graphite electrode capacity of 100,000 tonnes per annum, the world's largest single-site facility.^[1]
A second plant location exists at Village Ranipur, Tawa Nagar, Distt. Hoshangabad, Madhya Pradesh; both are national locations with no international plants.^[1]
Captive power generation capacity of 86 MW, comprising two thermal power plants and a hydroelectric facility; thermal plants were closed for most of FY26 due to uneconomical coal-power costs.^[1]
The Mandideep plant is backed by around 77 MW of captive power directly associated with the electrode manufacturing facility.^[1]
Key raw material is Calcined Petroleum Needle Coke; needle coke prices remained stable during FY26.^[1]

Key operating numbers

Capacity utilisation was 91% in FY26, the highest among all western graphite electrode manufacturers; the global industry average was 60 - 65% in the same period.^[1]
Capacity utilisation was 90%+ in Q1 FY27, sustaining the above-90% run rate seen through most of FY26.^[5]
UHP electrodes constitute 70 - 75% of production mix in Q3 FY26, insulating HEG from Chinese competition on quality-sensitive orders.^[6]
Export share was 70 - 75% in Q1 FY27; exports accounted for 67.03% of total turnover in FY26.^[5][1]
FY26 sales volume grew 20% YoY; standalone EBITDA expanded from ₹388 crore in FY25 to ₹497 crore in FY26 with EBITDA margin improving from 17% to 19%.^[3]
Standalone EBITDA in Q1 FY27 was ₹211 crore, up 38% YoY, with margin expanding to 29% from 23% in Q1 FY26.^[5]

Customers and distribution

HEG's electrodes reach the Top 25 steel producers of the world; named customers include JSPL, SAIL, ArcelorMittal, Qatar Steel, Emirates Steel, Tata Steel, CELSA Group, Jindal Stainless, and Acerinox Europia.^[1]
HEG serves markets in 42 countries and has a marketing presence spanning India and 35+ nations; it has been recognised as the highest exporter in its product category for several years running.^[1]
The Middle East and MENA region account for approximately 20% of annual sales; geopolitical disruption in Q4 FY26 postponed ~1,000 tonnes of orders from Kuwait and Saudi Arabia.^[3]
The US accounts for 10 - 12% of revenues; the 50% US reciprocal tariff announced in Q2 FY26 poses a competitive headwind in that market.^[7]

Expansion and capex

Brownfield electrode expansion of 15,000 tpa (from 100,000 to 115,000 tpa) at a capex of ₹650 crore is under construction; targeted for completion by early 2028.^[7][3]
TACC Limited is constructing a 20,000 MT graphite anode plant near Indore; engineering is 100% complete and procurement 85% complete as of Q1 FY27; commercial production targeted for Q1 FY28 (April 2027).^[5]
TACC anode Phase 2 targets expansion from 20,000 to 30,000 tpa at additional capex of approximately ₹800 crore, targeted by 2029.^[5]
HEG Greentech total capex is updated to approximately ₹5,500 crore (equity ~27%, debt ~73%) across anode, BESS, solar, and hydropower projects; steady-state ROCE of ~17% targeted by FY30.^[5]
A 300 MWp solar CNI project in Chhattisgarh is targeted to be operational by Q2 FY28; a 76 MW hydro project (Phatta/Uttarakhand) is targeted for commissioning by Q4 FY31.^[5]

Demerger and corporate structure

HEG's Board approved a composite demerger into two listed entities: HEG Graphite Limited (electrodes) and HEG Greentech Limited (anode materials, 278 MW hydropower, BESS EPC).^[1]
Post-demerger, HEG Greentech will have approximately 32.9 crore shares outstanding, including approximately 13 crore new shares issued to Singularity and existing stakeholders.^[5]
As of Q1 FY27 earnings call, NCLT had reserved its order on the composite scheme; the company was awaiting pronouncement before confirming the record date.^[5]
HEG has three wholly owned subsidiaries: TACC Limited (battery anode materials), HEG Graphite Limited, and Bhilwara Infotechnology Limited.^[1]

Recent developments

As of Q1 FY27, TACC has advanced offtake discussions for quantities exceeding 40,000 MT: a European legacy OEM (>40,000 MT) and a North American automotive company (>70,000 MT over 3 - 5 years).^[5]
Price increases of $600 - $1,200/tonne (GrafTech) and $930/tonne (Tokai Carbon) announced publicly; HEG stated it will follow and that meaningful price uplift is expected from Q3 FY27 onward for uncommitted volumes.^[5]
On 1 October 2026, subsidiary Replus Engitech Private Limited received a ₹127.35 crore order from Indus Towers Limited for supply of Lithium-Ion Battery Banks, to be executed by May 31, 2027.^[8]
HEG remains debt-free at the standalone level; treasury (investments + cash) stood at approximately ₹858 crore as of 30 June 2026, up from ₹792 crore as of 31 March 2026.^[5][3]
Steel production outside China rose 2.1% YoY to 431 million tonnes in H1 CY2026; India grew 7.1% YoY to approximately 87 million tonnes, driven by infrastructure demand.^[5]

Market Cap

₹6,576 Cr

High / Low

₹256 / 224

Stock P/E

12.1

Price / Book

0.9

Book Value

₹247

EPS

₹17.7

No. of Shares

19.3 Cr

ROCE

8.3%

ROE

7.4%

OPM

12.0%

Debt / Equity

0.17

Sales

₹2,569 Cr

Net Profit

₹338 Cr

Promoter holding

60.7%

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HEG Advanced Materials Limited(HEG)

About

Business segments

Manufacturing and capacity

Key operating numbers

Customers and distribution

Expansion and capex

Demerger and corporate structure

Recent developments

Signal history

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