India · Delayed Price · Currency is INR HEG Limited Earnings Call Transcripts
Fiscal Year 2026
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Delivered strong nine-month financials with robust margin expansion and industry-leading utilization, supported by global EAF transition and capacity expansion plans. Maintains a debt-free balance sheet and expects continued demand growth despite ongoing pricing pressures.
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A major demerger will create two focused listed entities: one for graphite electrodes and another, HEG Greentech, for clean tech, battery materials, and renewables. HEG Greentech is investing heavily in anode materials, BESS, and hydro, targeting strong growth, high margins, and responsible governance.
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Q2 FY2026 delivered strong revenue and profit growth driven by higher sales volumes and 90%+ utilization, despite flat prices and margin pressure from Chinese competition. Expansion and demerger plans are on track, with a bullish medium-term outlook as EAF demand rises.
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Revenue and profits rose sharply year-over-year, driven by high utilization and cost leadership despite global steel headwinds. Capacity expansion and strategic investments position the company for EAF-driven demand growth, with stable margins and robust liquidity.
Fiscal Year 2025
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Revenue and profits declined year-over-year due to weak global steel demand and MTM losses, but capacity utilization and margins improved sequentially. Major industry capacity cuts and new EAF projects are expected to support future pricing and demand.
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Q3 FY25 saw lower revenue but sharply higher EBITDA and net profit, with strong 80% capacity utilization and robust margins. The anode project is on track for 2026, the demerger is progressing, and significant investment in GrafTech reflects confidence in sector growth.
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Q2 FY25 saw revenue decline to INR 568 crores year-over-year, but EBITDA rose to INR 140 crores. Capacity utilization reached 80%, the highest globally, though margins remain under pressure due to weak demand and pricing. The company is debt-free and expects demand recovery from H2 2025.
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Q1 FY25 saw a sharp year-over-year decline in revenue and profit, mainly due to lower electrode prices, margin compression, and a one-time treasury investment loss. Despite near-term pressures, capacity utilization remains high and the company is well-positioned for long-term growth from global decarbonization trends.