HEG Limited delivered a resilient performance for the full year ended March 31, 2026, with total income rising to INR 2,660 crores and EBITDA margins improving to 19%. Despite near-term challenges caused by geopolitical tensions and logistics disruptions in the Middle East, the company maintained strong 90%+ capacity utilization. Management remains optimistic about the long-term structural shift toward electric arc furnace (EAF) steelmaking to drive future electrode demand.
Full Year Financial Highlights
For the financial year 2025-26, HEG Limited reported strong growth, with sales volumes increasing by 20%. This volume growth pushed total revenue to INR 2,569 crores, up from INR 2,153 crores in the previous year. EBITDA saw a significant rise to INR 497 crores, supported by a healthy margin of 19%. Profit Before Tax (PBT) surged by 66% to INR 246 crores, while net profit climbed to INR 181 crores. The company maintains a robust balance sheet with no long-term debt as of March 31, 2026.
Addressing Near-Term Challenges
During the final quarter, the company faced a temporary loss of INR 189 crores, primarily driven by unrealized losses on foreign investments and rupee depreciation. Furthermore, logistics disruptions in the Middle East, which accounts for approximately 20% of the company’s annual sales, led to a slight dent in quarterly operating profits. Management clarified that these disruptions are largely temporary and that efforts to divert orders and secure price adjustments for uncommitted volumes are underway to protect margins.
Strategic Outlook and Expansion
The company is strategically positioned to benefit from the global decarbonization trend. With the steel industry shifting toward electric arc furnace (EAF) technology—which significantly reduces carbon emissions—HEG expects a surge in long-term demand for graphite electrodes. The company is actively progressing with its 15,000-ton capacity expansion, targeting completion by early 2028, which will bolster its production capabilities to 115,000 tons.
Commitment to Long-Term Investments
Management reaffirmed its commitment to its investment in GrafTech, describing it as a deliberate, long-term strategic move. Despite market volatility, the company believes in the structural fundamentals of the graphite electrode industry and the competitive advantages provided by backward integration in needle coke supply. The company remains focused on operational efficiency and cost leadership to navigate the evolving global trade landscape.
Source: BSE
