HEGNSEHEG Limited· ElectrodesMediumNeutral
Announced Fri, 1 May · 18:48 IST

HEG Limited has informed the Exchange about Presentation

Investor Communications View source PDF

HEG · price

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AI summary

HEG Limited reported FY26 standalone revenue of Rs 2,568 crore, up 19% YoY, with PAT of Rs 181 crore more than doubling from Rs 101 crore in FY25. EBITDA margin improved to 19% from 17% in FY25. However, Q4 FY26 saw a standalone loss of Rs 189 crore due to a Rs 227 crore surge in 'other expenses' (including mark-to-market losses on GrafTech investment), versus a loss of Rs 72 crore in Q4 FY25. Consolidated PAT for FY26 stood at Rs 341 crore, boosted by Rs 115.5 crore share of profits from associates. The company is the world's largest single-site graphite electrode plant and is expanding capacity from 100,000 to 115,000 tons by early 2028. Management flagged rising geopolitical costs and energy prices pressuring margins, necessitating price increases for graphite electrodes in coming quarters. Short-term borrowings rose to Rs 793 crore while cash investments fell to Rs 792 crore as of March 2026.

Likely market impact

HEG delivered strong full-year growth but a surprise Q4 loss driven by non-cash other expenses raises near-term concerns. The cash balance nearly matched borrowings, and management's plan to raise electrode prices signals an attempt to protect margins against rising input costs. Capacity expansion and strong associate contributions provide long-term upside.