HEG Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript HEG Ltd filed with BSE on 08 May 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 FY26 revenue growth of 20% in volume with revenue rising from Rs 2,153 crore to Rs 2,569 crore and EBITDA margin improving from 17% to 19%. The company posted a Q4 net loss of Rs 189 crore mainly due to unrealized fair value losses on its GrafTech investment and rupee depreciation. Management discussed capacity utilization above 90%, ongoing expansion to 115,000 tons of electrode capacity, and progress on the composite scheme of arrangement pending NCLT approval.
Numbers mentioned
Sales volume growth: 20% (FY26 vs FY25)
p. 6
“Our sales volume increased by 20%, which helped our revenue grow from INR 2,153 crores to INR 2,569 crores.”
Ravi Tripathi, page 6 of the filed PDF · View the filing
Revenue: INR 2,569 crores (FY26)
p. 6
“Our sales volume increased by 20%, which helped our revenue grow from INR 2,153 crores to INR 2,569 crores.”
Ravi Tripathi, page 6 of the filed PDF · View the filing
Total income: INR 2,660 crores (FY26)
p. 6
“Total income also increased to INR 2,660 crores from INR 2,279 crores.”
Ravi Tripathi, page 6 of the filed PDF · View the filing
EBITDA: INR 497 crores (FY26)
p. 6
“Our EBITDA increased from INR 388 crores to INR 497 crores, with margins increasing from 17% to 19%.”
Ravi Tripathi, page 6 of the filed PDF · View the filing
PBT: INR 246 crores (FY26)
p. 6
“PBT has increased from INR 148 crores to INR 246 crores, which is a growth of 66%.”
Ravi Tripathi, page 6 of the filed PDF · View the filing
Net profit: INR 181 crores (FY26)
p. 6
“Net profit also increased from INR 101 crores to INR 181 crores.”
Ravi Tripathi, page 6 of the filed PDF · View the filing
Treasury: around INR 792 crores (as of 31st March 2026)
p. 6
“It had a treasury of around INR 792 crores.”
Ravi Tripathi, page 6 of the filed PDF · View the filing
Quarterly net loss: INR 189 crores (Q4 FY26)
p. 6
“We reported a loss of INR 189 crores.”
Ravi Tripathi, page 6 of the filed PDF · View the filing
Final dividend: INR 3.4 per equity share (FY26)
p. 7
“The Board of Directors has recommended a final dividend of INR 3.4 per equity share face value of INR 2, subject to shareholder approval at the upcoming Annual General Meeting.”
Ravi Tripathi, page 7 of the filed PDF · View the filing
FX loss in other expenses: INR 35 crores to INR 40 crores (Q4 FY26)
p. 14
“this FX loss is completely unrealized loss that we should quantify in the range of INR 35 crores to INR 40 crores within the quarter.”
Ravi Tripathi, page 14 of the filed PDF · View the filing
Middle East/MENA sales share: about 20% (annual)
p. 8
“See, annually, we do about 20% sales in Middle East and MENA region, Middle East, North Africa.”
Manish Gulati, page 8 of the filed PDF · View the filing
Production capacity utilization: 95% (Q4 FY26)
p. 19
“If you strictly talk about capacity utilization on production, actually it’s 95% for the quarter.”
Manish Gulati, page 19 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.
Electrode capacity expansion — 115,000 tons · early 2028
stated firmly by Ravi Jhunjhunwala
p. 5
“we have already announced our next expansion to 115,000 tons, which is likely to be operational by early 2028”
Ravi Jhunjhunwala, page 5 of the filed PDF · View the filing
NCLT scheme approval — second quarter of this financial year
stated conditionally by Ravi Jhunjhunwala
p. 6
“Subject to shareholder, creditor, and other regulatory approvals, we anticipate that the scheme could be approved by the NCLT sometime in the second quarter of this financial year.”
Ravi Jhunjhunwala, page 6 of the filed PDF · View the filing
Price increase — H2
stated as an aspiration by Manish Gulati
p. 7
“But definitely towards H2, our aim is to have price increase, not only to protect our margins, but to help improve further.”
Manish Gulati, page 7 of the filed PDF · View the filing
EBITDA margin — 20% · Q1 and Q2 FY27
stated conditionally by Ravi Tripathi
p. 20
“So, the EBITDA range will be the 20% we can say for the next 1st Quarter and to 2nd Quarter.”
Ravi Tripathi, page 20 of the filed PDF · View the filing
TACC capacity utilization — 40% to 60% · first year
stated as an aspiration by Riju Jhunjhunwala
p. 8
“we hope that in the first year itself, we will be able to have a decent 40% to 60% kind of capacity utilization, because of the customer acquisitions that are going on right now”
Riju Jhunjhunwala, page 8 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 quantum is difficult to predict but a price increase is necessary due to energy and freight cost increases, targeted for H2.
Answered by Manish Gulati
Asked by Amit Lahoti: How much price hike is HEG looking to take and is there a similar cost increase for needle coke?
p. 7
“How much will be the quantum, whether it will be 300, 400, 500 is very difficult to say at this stage.”
Manish Gulati, page 7 of the filed PDF · View the filing
Management said sampling with leading OEMs including LG, Panasonic and CATL is progressing well with no technology issues and no change in commissioning timeline.
Answered by Riju Jhunjhunwala
Asked by Amit Lahoti: Where is HEG in the TACC customer qualification process and how fast can it ramp up?
p. 8
“But the sampling works are going extremely well, as well as the plant commissioning. There is no change in the plant commissioning date from April.”
Riju Jhunjhunwala , page 8 of the filed PDF · View the filing
Management attributed the decline to a regional sales mix shift and slightly lower volume, not a broad price depression.
Answered by Manish Gulati
Asked by Rajesh Majumder: What was the sales volume for the quarter and why is revenue lower?
p. 8
“there is a slightly less volume to the tune of, I guess, about 1000 tons and some depression in price, but that is only because of how the regional sales mix.”
Manish Gulati, page 8 of the filed PDF · View the filing
Management confirmed orders from Kuwait and Saudi customers had to be postponed and other customers were prioritized instead.
Answered by Manish Gulati
Asked by Rajesh Majumder: Is there disruption to sales because of the Middle East conflict?
p. 8
“The orders, which we had from all these customers, like Kuwait and Saudis, and they all have to be postponed.”
Manish Gulati, page 8 of the filed PDF · View the filing
Management said needle coke supply is covered from origin through arrival, safely covering costs until September.
Answered by Manish Gulati
Asked by Rajesh Majumder: Is HEG covered on needle coke pricing given the crude oil rally?
p. 9
“So, by the time they arrive, they take 45 days to arrive, and our electrode product processing is another 45 days. So, it safely covers our costs until September from the needle coke side.”
Manish Gulati, page 9 of the filed PDF · View the filing
Management quantified the unrealized FX loss for the quarter.
Answered by Ravi Tripathi
Asked by Raj Kiran Gandhi: Can HEG quantify the FX loss reflected in other expenses?
p. 14
“this FX loss is completely unrealized loss that we should quantify in the range of INR 35 crores to INR 40 crores within the quarter.”
Ravi Tripathi, page 14 of the filed PDF · View the filing
Management explained the rationale for its GrafTech investment based on GrafTech's backward integration into needle coke production.
Answered by Ravi Jhunjhunwala
Asked by Karthikeya K. Pandey: How will HEG fulfill incremental electrode demand given needle coke supply constraints?
p. 11
“That’s the only graphite company who has a needle coke plant of its own to the extent of about 75% of their own capacity.”
Ravi Jhunjhunwala, page 11 of the filed PDF · View the filing
Management said battery makers can substitute needle coke with other materials while electrode makers cannot, limiting competition for the raw material.
Answered by Ravi Jhunjhunwala
Asked by Ajas Lakhani: Could battery demand for needle coke create scarcity for graphite electrode producers?
p. 16
“needle coke can be replaced by one of these six, seven other raw materials that you can mix. But for graphite electrode, there is nothing that you can do.”
Ravi Jhunjhunwala, page 16 of the filed PDF · View the filing
Management said the decline was due to fair valuation losses being classified in other expenses rather than other income.
Answered by Ravi Tripathi
Asked by Akhilesh: Why did other income decline during the quarter?
p. 20
“The other income in the quarter is lower due to the loss in the fair valuation loss which we have classified in the other expenses.”
Ravi Tripathi, page 20 of the filed PDF · View the filing
Management guided EBITDA margin to be around 20% for the next two quarters and for the full year.
Answered by Manish Gulati
Asked by Akhilesh: Can EBITDA margin guidance of around 22% be sustained given the Middle East crisis impact in Q4?
p. 20
“Should be around that number.”
Manish Gulati, page 20 of the filed PDF · View the filing
Risks flagged
Chinese steel export overcapacity impacting global pricing
p. 4
“Chinese steel exports are now running at over about 100 million tons on an annual basis, which continues to impact global pricing and drive increased trade protection measures worldwide.”
Ravi Jhunjhunwala, page 4 of the filed PDF · View the filing
Geopolitical tensions in Middle East causing volatility in energy markets and supply chains
p. 4
“At the same time, current geopolitical tensions amidst conflicts in the Middle East are contributing to volatility in energy markets and supply chains.”
Ravi Jhunjhunwala, page 4 of the filed PDF · View the filing
Middle East conflict disrupting shipments and orders
p. 8
“Yes, absolutely, there is disruption. The orders, which we had from all these customers, like Kuwait and Saudis, and they all have to be postponed.”
Manish Gulati, page 8 of the filed PDF · View the filing
Sharp freight cost increases in Middle East routes
p. 13
“You see particularly in Middle East, where freight costs shot up from $20, $30 to more than $300, of course, we had to tell our customers.”
Manish Gulati, page 13 of the filed PDF · View the filing
Rupee depreciation causing unrealized fair value losses
p. 6
“This is mainly attributable to fair values and impact on foreign investment, and rapid depreciation of rupees, which led to 5% within this quarter.”
Ravi Tripathi, page 6 of the filed PDF · View the filing
Rising trade protectionism affecting global steel and electrode trade
p. 4
“We are clearly witnessing an acceleration in the regionalization of steel trade, driven by rising protectionist measures globally in response to structural overcapacity, particularly in China.”
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.