HEG Limited has informed the Exchange about Capacity addition
HEG · price
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HEG Limited's board approved a capacity expansion of 15,000 tonnes per annum (TPA) for graphite electrodes and related products on top of its existing 1,00,000 TPA capacity (currently running at 85-90% utilisation). The project will cost around Rs. 650 Crores, funded through internal accruals and debt if needed, and is targeted to be completed within 30 months. The company also reported Q1 FY26 standalone results, with revenue rising to Rs. 612.78 Crore from Rs. 571.46 Crore year-on-year, while profit after tax jumped to Rs. 67.65 Crore from Rs. 36.31 Crore (up about 86%), driven partly by a Rs. 23.25 Crore fair value gain on its Graftech International investment. Consolidated profit after tax stood at Rs. 104.77 Crore. The auditor's review report is unqualified but flags a material going concern uncertainty and emphasis of matter relating to two hydro power subsidiaries of its associate Bhilwara Energy Limited.
The Rs. 650 Crore expansion signals management's confidence in rising graphite electrode demand and could drive future revenue growth, but it also raises capex and debt requirements in the near term. Strong quarterly profit growth and healthy existing capacity utilisation are positives for shareholders, while the hydro power issues at the associate level are unlikely to have a direct material impact on HEG's core graphite business.