HEG Advanced Materials Limited announced significant strategic initiatives following its Q2 and H1 FY27 financial results. The company’s board has approved a substantial expansion of its anode plant capacity from 20,000 MT to 44,000 MT, alongside a new crucible project for backward integration and a graphene project. These expansions, with a combined capex of approximately ₹1,606 crore for the anode plant and ₹475 crore for the crucible project, are aimed at enhancing its position in the advanced materials sector.
HEG Advanced Materials Unveils Major Growth Initiatives
HEG Advanced Materials Limited has announced a series of strategic expansions and new projects following the release of its financial results for the second quarter (Q2) and the first half (H1) of FY27. These developments signal a strong push towards capacity enhancement and diversification within the advanced materials sector.
Anode Plant Capacity Expansion
A key highlight is the board’s approval to expand the current 20,000 MT capacity anode plant to a total of 44,000 MT. This expansion will be undertaken with a capital expenditure (capex) of approximately ₹1,606 crore. The phased expansion will see 20,000 MT coming into operation by June 2027, with the remaining 24,000 MT scheduled for completion by March 2029. This move is in response to the growing global demand for lithium-ion battery materials.
New Crucible and Graphene Projects
In addition to the anode plant expansion, the company has also approved a crucible project aimed at backward integration and cost optimization, requiring a capex of ₹475 crore. Furthermore, a new graphene project with a capacity of 500 MTPA has been sanctioned with a capex of ₹500 crore. The implementation of an ESOP scheme was also noted.
Financial Performance Highlights
For H1 FY27, HEG Advanced Materials reported consolidated revenue from continuing operations at ₹725.80 crore, with total income reaching ₹870.77 crore. The company achieved an EBITDA of ₹438.00 crore and a profit after tax of ₹208.89 crore. As of September 30, 2026, consolidated cash and bank balances stood at a robust ₹1322.84 crore.
In Q2 FY27, consolidated revenue from continuing operations was ₹429.94 crore, with EBITDA at ₹312.78 crore and profit after tax at ₹208.89 crore.
Strategic Vision and Business Highlights
Mr. Riju Jhunjhunwala, Chairman, MD & CEO, stated that Q2 FY27 reflects continued progress towards building a technology-led, globally competitive advanced materials platform. The company’s focus remains on R&D, proprietary technologies, and developing differentiated businesses in anode materials, graphene, battery energy storage, and green power.
Business highlights include the significant growth expected in global lithium-ion battery production, driving demand for anode materials. The Phase I anode facility construction has reached 61% progress, targeting commissioning by June 2027. Phase II will further increase capacity to 44,000 MT by March 2029.
The company’s Battery Energy Solutions (REPLUS Engitech) has deployed over 1 GWh of energy storage capacity, with a 5 GWh high-speed prismatic line expansion under construction. The Green Power Businesses maintain a combined hydroelectric installed capacity of 278 MW and a 14 MW wind power project.
Company Restructuring
The HEG Composite Scheme became effective on September 1, 2026, involving the transfer of the graphite electrodes business to HEG Limited and the amalgamation of Bhilwara Energy Limited. Current financial figures are presented separately for continuing and discontinued operations and are not directly comparable to previous periods due to the demerger.
Source: BSE
