HEG Plans ₹650 Cr Graphite Electrodes Capacity Expansion; Q1 FY26 Profit Sees Significant Jump
The approval of a ₹650 crore capital expenditure to increase graphite electrode capacity by 15% (15,000 TPA) is a significant strategic decision, indicating future growth and market positioning. This, combined with a substantial year-on-year improvement in quarterly financial performance, suggests a strong positive outlook for the company, making the impact high.
The company reported a significant increase in both standalone and consolidated profits for Q1 FY26 compared to the previous year. Additionally, the approval of a substantial capacity expansion project for graphite electrodes signals strong future demand outlook and growth potential.
* The Board of Directors of HEG Limited, in a meeting held on 30 July 2025, approved the unaudited financial results for the quarter ended 30 June 2025 and an expansion plan for Graphite Electrodes and related products. * The company plans to add 15,000 TPA (Tonnes Per Annum) to its existing Graphite Electrodes capacity of 1,00,000 TPA. The current capacity utilization ranges from 85% to 90%. * The proposed capacity addition will require an investment of approximately ₹ 650 crores and is expected to be completed within 30 months. * Financing for the expansion will primarily be through internal accruals, with debt being considered if required. * The rationale for the expansion includes a structural change in the industry boosting demand for electrodes and a healthy payback. * For the quarter ended 30 June 2025, HEG reported the following standalone financial results: * Revenue from operations: ₹ 612.78 crores * Profit Before Tax (PBT): ₹ 92.42 crores * Profit After Tax (PAT): ₹ 71.80 crores * Basic Earnings Per Share (EPS): ₹ 3.72 * Comparatively, for the quarter ended 30 June 2024 (Q1 FY25), standalone PBT was ₹ 3.26 crores and PAT was ₹ 2.58 crores, indicating a substantial year-on-year improvement. * On a consolidated basis for the quarter ended 30 June 2025: * Revenue from operations: ₹ 616.93 crores * Profit Before Tax (PBT): ₹ 127.46 crores * Profit After Tax (PAT): ₹ 104.77 crores * Basic Earnings Per Share (EPS): ₹ 5.43 * For the quarter ended 30 June 2024, consolidated PBT was ₹ 23.04 crores and PAT was ₹ 23.02 crores, also showing significant growth. * It was also noted that effective from 18 October 2024, the company's equity shares underwent a 1:5 sub-division, changing the face value from ₹ 10 to ₹ 2 per share. Earnings per share for prior periods have been restated accordingly.
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HEG Limited filed this with the NSE as a statutory disclosure, categorised under results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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