HEG Board Approves Q2 Results, ₹633 Cr Debentures for Subsidiary, New CSO Appointment, and Addresses Tax Notices
HEG's board approved Q2 FY26 results showing increased profit and revenue. It also approved a ₹633 crore debenture subscription for a subsidiary, divested stake in Texnere India, appointed a new CSO, and is addressing ₹564.68 crore in tax notices.
The positive financial results are a good sign, but the reliance on investment fair value for a large part of the profit growth and the pending, albeit disputed, tax liability of over ₹564 crore could create apprehension among investors. The other corporate actions and management changes are standard but do not significantly alter the immediate outlook.
While HEG reported significant increases in revenue and profit for Q2 FY26, a substantial portion of this profit is attributed to the fair value increase of an investment, rather than core operational growth. Additionally, the company is facing show cause notices for a significant amount (₹564.68 crore in total) related to IGST refunds, which introduces uncertainty despite the company's confidence in resolution.
* The Board of Directors of HEG Limited, in its meeting held on November 10, 2025, approved the Un-Audited Standalone and Consolidated Financial Results for the quarter and half year ended September 30, 2025. * Standalone Financial Highlights (Q2 FY26 vs Q2 FY25): * Revenue from operations for Q2 FY26 increased to ₹696.85 crore from ₹567.60 crore in Q2 FY25. * Profit before tax for Q2 FY26 rose to ₹162.89 crore from ₹82.48 crore in Q2 FY25. * Profit for the period (Q2 FY26) was ₹129.83 crore, up from ₹62.76 crore in Q2 FY25. * Basic Earnings Per Share (EPS) for Q2 FY26 was ₹6.78, compared to ₹3.22 in Q2 FY25. * Consolidated Financial Highlights (Q2 FY26 vs Q2 FY25): * Revenue from operations for Q2 FY26 increased to ₹699.22 crore from ₹567.60 crore in Q2 FY25. * Profit before tax for Q2 FY26 rose to ₹167.97 crore from ₹82.28 crore in Q2 FY25. * Profit for the period (Q2 FY26) was ₹142.19 crore, up from ₹82.28 crore in Q2 FY25. * Basic Earnings Per Share (EPS) for Q2 FY26 was ₹7.43, compared to ₹4.26 in Q2 FY25. * The profit for the quarter ended September 30, 2025, includes ₹78.85 crore (Standalone) and ₹78.85 crore (Consolidated) from the increase in fair value of investment in equity shares of Graftech International Limited, USA. * The Board approved the subscription of unsecured unlisted Optionally Convertible Debentures (OCDs) of up to ₹633 crore in one or more tranches to TACC Limited, a wholly-owned subsidiary. * Bhilwara Infotechnology Limited, another wholly-owned subsidiary, decided in principle to sell/transfer its 26% shareholding in Texnere India Private Limited. * Shri Puneet Anand was appointed as President and Group Chief Strategy Officer and a Key Managerial Personnel, effective December 1, 2025. * The Company received Show Cause Notices from the Deputy Commissioner (SGST) proposing recovery of IGST refunds along with a penalty amounting to ₹282.34 crore for each of the tax periods FY 2019-20 and FY 2020-21. HEG is confident that its IGST refunds are in order and expects the notices to be dropped, citing similar past instances for FY 2017-18 and FY 2018-19 that were dropped. * A fresh application for a modified Scheme of Amalgamation with Bhilwara Energy Limited has been filed with stock exchanges, pending various regulatory and shareholder approvals.
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HEG Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by HEG Limited. Read the original for the full detail.