HEG Ltd
NSE:HEG
HEG Ltd
HEG Ltd., a stalwart in the industrial landscape of India, emerges as a key player in the world of graphite electrode manufacturing. Graphite electrodes are indispensable in the production of steel through electric arc furnaces, a process favored for its efficiency and environmental benefits compared to traditional blast furnaces. Stepping into the sprawling facilities of HEG, one would witness the intricate fusion of technology and innovation that drives their production processes. The company boasts one of the largest graphite electrode plants in the world, located in Mandideep, Madhya Pradesh. This formidable capacity enables HEG to cater to both domestic and international markets, underpinning its status as a pivotal supplier to the global steel industry.
The company's revenue model flourishes by tapping into the cyclical nature of the steel industry. As steel producers ramp up their output during periods of high demand, HEG stands resiliently prepared to supply the essential graphite electrodes that are crucial for this uptick in production. Leveraging its extensive R&D capabilities, HEG continually enhances the efficiency and quality of its electrodes, maintaining a competitive edge in a highly specialized market. This focus on innovation, coupled with strategic investments in production capacity, ensures that HEG can scale operations effectively while retaining a sharp focus on quality. As global markets continue to emphasize sustainable production practices, HEG's role in supporting greener steelmaking processes drives both its strategic direction and financial outcomes.
HEG Ltd., a stalwart in the industrial landscape of India, emerges as a key player in the world of graphite electrode manufacturing. Graphite electrodes are indispensable in the production of steel through electric arc furnaces, a process favored for its efficiency and environmental benefits compared to traditional blast furnaces. Stepping into the sprawling facilities of HEG, one would witness the intricate fusion of technology and innovation that drives their production processes. The company boasts one of the largest graphite electrode plants in the world, located in Mandideep, Madhya Pradesh. This formidable capacity enables HEG to cater to both domestic and international markets, underpinning its status as a pivotal supplier to the global steel industry.
The company's revenue model flourishes by tapping into the cyclical nature of the steel industry. As steel producers ramp up their output during periods of high demand, HEG stands resiliently prepared to supply the essential graphite electrodes that are crucial for this uptick in production. Leveraging its extensive R&D capabilities, HEG continually enhances the efficiency and quality of its electrodes, maintaining a competitive edge in a highly specialized market. This focus on innovation, coupled with strategic investments in production capacity, ensures that HEG can scale operations effectively while retaining a sharp focus on quality. As global markets continue to emphasize sustainable production practices, HEG's role in supporting greener steelmaking processes drives both its strategic direction and financial outcomes.
Revenue Growth: HEG reported robust revenue of INR 1,965 crores for the 9 months ended December 2025, up from INR 1,616 crores YoY.
Profit Surge: Stand-alone profit after tax nearly doubled to INR 344 crores; consolidated profit after tax rose to INR 455 crores.
High Utilization: The company achieved industry-leading capacity utilization of 85% in the previous quarter and 89% over the last three quarters.
Stable Margins: Despite low realizations and global headwinds, margins have improved, driven by operating leverage and cost advantages.
Expansion on Track: The 15,000-tonne graphite electrode capacity expansion is progressing as scheduled and targeted for completion by early 2028.
NCLT Approval: HEG received the awaited NCLT order for its composite scheme of arrangement during the call, setting the stage for the next phase of the demerger process.
Exports & Diversification: Exports consistently form about two-thirds of total sales, with market share gains across all major geographies.
Guidance: Management expects continued strong performance and does not foresee major realization changes in the next two quarters.
