HEG Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript HEG Ltd filed with BSE on 28 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
HEG reported Q1 FY27 standalone revenue of INR681 crores, up 11% year-on-year, with standalone EBITDA rising 38% to INR211 crores and margins expanding to 29% from 23%. Management attributed the improvement to better realization from product and geographic mix, cost discipline and operational efficiency, despite a marginal decline in volumes and capacity utilization above 90%. Management also discussed the ongoing demerger of the Advanced Materials business, progress on the TACC anode project and Bhilwara Energy's hydro and solar plans, and rising needle coke costs expected to affect the P&L later in the year.
Numbers mentioned
Standalone revenue from operations: INR681 crores (Q1 FY27)
p. 5
“revenue from operations increased by 11% on a year-on-year basis to INR681 crores compared with INR613 crores in Q1 of the previous year”
Ravi Tripathi, page 5 of the filed PDF · View the filing
Consolidated revenue from operations: INR681 crores (Q1 FY27)
p. 5
“On a consolidated basis, revenue from operations also grew by 11% to INR681 crores, while total income increased by 8% to INR724 crores from INR673 crores in the corresponding quarter the last year.”
Ravi Tripathi, page 5 of the filed PDF · View the filing
Standalone EBITDA: INR211 crores (Q1 FY27)
p. 5
“Stand-alone EBITDA increased by 38% on a year-on-year basis to INR211 crores from INR154 crores, with EBITDA margins also improved to 29% compared with 23% in the corresponding quarter of last year.”
Ravi Tripathi, page 5 of the filed PDF · View the filing
Consolidated EBITDA: INR194 crores (Q1 FY27)
p. 5
“At the consolidated level, EBITDA increased by 17% to INR194 crores from INR166 crores, while EBITDA margins improved to 27% from 25% of the last year.”
Ravi Tripathi, page 5 of the filed PDF · View the filing
Standalone profit after tax: INR110 crores (Q1 FY27)
p. 5
“Stand-alone profit after tax increased by 53% on a year-on-year basis to INR110 crores from INR72 crores, while consolidated profit after tax increased by 23% to INR122 crores from INR100 crores.”
Ravi Tripathi, page 5 of the filed PDF · View the filing
Capacity utilization: 90% plus (Q1 FY27)
p. 5
“Capacity utilization during the quarter stood at 90% plus, which is marginally lower than the corresponding period of last year.”
Ravi Tripathi, page 5 of the filed PDF · View the filing
Treasury: approximately INR858 crores (as of 30th June 2026)
p. 6
“our treasury stood at approximately INR858 crores as of 30th June 2026”
Ravi Tripathi, page 6 of the filed PDF · View the filing
TACC debt secured: INR1,240 crores
p. 10
“So TACC -- no, TACC debt, what we have secured till date is INR1,240 crores from SBI and balance is from our own capital and the internal accruals.”
Puneet Anand, page 10 of the filed PDF · View the filing
US market share of revenue: less than about 10%
p. 15
“Hardly, I would say, less than about 10%...”
Manish Gulati, page 15 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Capacity utilization — more than 90% · forthcoming quarters
stated firmly by Ravi Jhunjhunwala
p. 4
“expect to continue operating at more than 90% in the forthcoming quarters as well”
Ravi Jhunjhunwala, page 4 of the filed PDF · View the filing
Capacity expansion — 115,000 tons · early 2028
stated firmly by Ravi Jhunjhunwala
p. 4
“a further expansion that we are currently undertaking to reach 115,000 tons, which is on track and should be in operation by early 2028”
Ravi Jhunjhunwala, page 4 of the filed PDF · View the filing
Full-year capacity utilization — between 90% to 95% · FY27
stated conditionally by Manish Gulati
p. 11
“we think we'll close the year between 90% to 95%, something like that”
Manish Gulati, page 11 of the filed PDF · View the filing
Anode project revenue — INR600 crores to INR700 crores in year 1, more than INR1,200 crores in year 2, crossing around INR1,500 crores, INR1,600 crores in year 3 · first three years of commercial production
stated as an aspiration by Riju Jhunjhunwala
p. 13
“which should give us a revenue of around INR600 crores to INR700 crores in the first year, which would ramp up to more than INR1,200 crores in year 2”
Riju Jhunjhunwala, page 13 of the filed PDF · View the filing
Anode project EBITDA margin — 35%
stated as an aspiration by Riju Jhunjhunwala
p. 13
“the margins that we are looking at without getting into more details, roughly an EBITDA margin of 35% for -- under all these 3 numbers”
Riju Jhunjhunwala, page 13 of the filed PDF · View the filing
HEG Greentech combined EBITDA — 4-digit EBITDA · by the year 2030
stated as an aspiration by Riju Jhunjhunwala
p. 13
“we should be aiming at a 4-digit EBITDA between all the businesses combined”
Riju Jhunjhunwala, page 13 of the filed PDF · View the filing
Solar project commissioning — 300-megawatt DC capacity · next 18 months
stated conditionally by Riju Jhunjhunwala
p. 14
“Solar project, if it comes up, it's a 300-megawatt C&I project, which will just be a plain vanilla solar project of 300-megawatt DC capacity.”
Riju Jhunjhunwala, page 14 of the filed PDF · View the filing
Hydro project commissioning — 75 megawatts · 2.5 years from today
stated firmly by Riju Jhunjhunwala
p. 14
“This is 75 megawatts, and we've actually acquired this project from our previous partner, Statkraft.”
Riju Jhunjhunwala, page 14 of the filed PDF · View the filing
Anode capex spend timeline — 90% by FY27, balance 10% in FY28 first quarter · FY27-FY28
stated firmly by Puneet Anand
p. 12
“we are hoping that the entire 95% -- 90% payment will be done by FY '27 and balance 10% will be done in FY '28, first quarter”
Puneet Anand, page 12 of the filed PDF · View the filing
Full year capacity utilization commitment — 90%, 95%
stated firmly by Ravi Jhunjhunwala
p. 18
“we will produce at 90%, 95% capacity utilization come what may”
Ravi Jhunjhunwala, page 18 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said Middle East is around 20% of business and volumes were absorbed across other markets without loss.
Answered by Manish Gulati
Asked by Amit Lahoti: What was the Middle East share of revenue and where were lost volumes redirected?
p. 6
“See, over the year, it's around 20%. And it hardly matters because we are so well diversified across countries.”
Manish Gulati, page 6 of the filed PDF · View the filing
Management said pricing is booked months in advance, so hikes will only show up from October onwards.
Answered by Manish Gulati
Asked by Amit Lahoti: When will recent price hikes show up in earnings?
p. 6
“whoever is announcing a price hike and we also -- I mean, we have to start raising prices will only happen October onwards because we anyway committed up to September”
Manish Gulati, page 6 of the filed PDF · View the filing
Management said only 3-4 countries in the Middle East region were impacted and there is no connection to the US CVD/AD matter.
Answered by Manish Gulati
Asked by Ahmed: What is HEG's exposure to Middle East and how does the US regulatory action relate?
p. 7
“So there is no connect between this and the U.S. business per se. The CVDs and ADs, which you are mentioning, that thing will keep ongoing, and we will see what results come and we'll see.”
Manish Gulati, page 7 of the filed PDF · View the filing
Management estimated 25-30 million tons commissioned in the last several quarters, broadly in line with earlier expectations.
Answered by Ravi Jhunjhunwala
Asked by Akhilesh Kumar: How much EAF capacity has been commissioned so far in CY26?
p. 9
“between 25 million, 30 million tons has already come in the last 3, 4, 5 quarters”
Ravi Jhunjhunwala, page 9 of the filed PDF · View the filing
Management said about 70% of capacity is expected to be under long-term contract within 1-1.5 months.
Answered by Ankur Khaitan
Asked by Akhilesh Kumar: How much of the anode capacity is contracted?
p. 10
“almost about 70% of the contracts will be closed by the next 1, 1.5 months. And all these contracts will be long-term contracts with the top Tier 1 players across the world.”
Ankur Khaitan, page 10 of the filed PDF · View the filing
Management estimated a ballpark increase of $200-$300 per ton, with impact expected in a few months.
Answered by Manish Gulati
Asked by Kirtan Mehta: What needle coke price increase has the industry seen since the Middle East disruptions began?
p. 15
“you can just take a ballpark number of between anywhere between $200, $250 or $300”
Manish Gulati, page 15 of the filed PDF · View the filing
Management said steel industry utilization is currently below 75% and that new capacity coming online is entirely electric arc furnace based, which should raise electrode demand.
Answered by Manish Gulati
Asked by Kirtan Mehta: Why should pricing improve when Western capacity utilization remains lower than HEG's?
p. 17
“today, I can safely say that steel industry utilization is even less than 75%. The moment there is the production starts to increase and ex China is more than 50% from electric arc furnace, the graphite electrode demand will grow.”
Manish Gulati, page 17 of the filed PDF · View the filing
Risks flagged
War in the Middle East disrupted trade, raised shipping costs and transit times
p. 3
“The year began in a shadow of an ongoing war in the Middle East, which materially impacted energy prices globally, besides disturbing world trade and pushing shipping costs disproportionately very high in some cases and also increased transit times.”
Ravi Jhunjhunwala, page 3 of the filed PDF · View the filing
Chinese steel exports remain at elevated levels, prompting trade defense measures globally
p. 3
“This sustained export pressure has prompted a broad wave of defensive trade measures, including antidumping and safeguard duties across key regions like the U.S., EU and India.”
Ravi Jhunjhunwala, page 3 of the filed PDF · View the filing
Potential US anti-dumping and countervailing duty actions
p. 15
“CVD is by end July. Dumping is by end September. So we'll see what they come up with.”
Manish Gulati, page 15 of the filed PDF · View the filing
Rising needle coke and other input costs due to higher oil prices and freight
p. 4
“These pressures are also being felt across all raw materials like needle coke and other key inputs in the supply chain, which are gradually getting reflected in our input costs.”
Ravi Jhunjhunwala, page 4 of the filed PDF · View the filing
US trade policy changes disrupting established trade channels
p. 4
“Changes in U.S. trade policies, including tariffs and several country and product-specific measures are disrupting the established global trade channels.”
Ravi Jhunjhunwala, page 4 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.