HEG LIMITED

Manufactures graphite electrodes, the consumable used in electric arc furnace (EAF) steelmaking, at a single 100,000-tonne-per-annum plant near Bhopal that the company describes as the world's largest single-site electrode facility. Graphite electrodes generated 98.9% of FY26 segment revenue at Rs 2,539.55 cr, with a Power segment contributing the remaining 1.1% (Rs 28.95 cr). The graphite plant ran at over 90% capacity utilisation in FY26, and a brownfield expansion to 115,000 tonnes is targeted for commissioning by early 2028. Demand is tied to EAF steel output; the Q4 FY26 call cited ~100 million tonnes of new global EAF capacity (ex-China) by 2030 as a structural driver. The cost mix is materials-heavy at 38.0% of revenue, with needle coke — supplied by only 3-4 global producers with no new capacity additions in decades — being the key input, plus other operating expenses at 38.3%. HEG is debt-free with a Rs 858 cr treasury as of Q1 FY27, and a 20,000-tonne synthetic graphite anode project for lithium-ion batteries is being built by wholly-owned subsidiary TACC at Dewas (project cost Rs 1,893 cr), targeted to start up around April 2027. A composite scheme of arrangement is pending NCLT order to demerge the graphite business and carve out a Greentech platform covering anodes, graphene, battery energy storage and green power. The US accounts for ~10% of revenue and faces a preliminary countervailing duty rate of 6.99% on Indian graphite electrode imports.