HEG Limited has announced its financial results for the quarter and year ended March 31, 2026. Despite facing headwinds in the global steel market and geopolitical challenges impacting margins, the company remains focused on capacity expansion. HEG reported a full-year consolidated profit before tax of ₹404.37 crore. The company continues its strategic growth path with plans to reach a graphite electrode capacity of 115,000 tons by early 2028.
Financial Highlights
For the financial year ended March 31, 2026, HEG Limited reported consolidated revenue from operations of ₹2,568.50 crore. The consolidated profit before tax stood at ₹404.37 crore for the full year. On a standalone basis, the company reported an annual total income of ₹2,660.46 crore with an EPS of ₹9.36. The quarter ended March 31, 2026, saw the company navigate a complex market environment, with consolidated profit before tax reported at (₹144.94) crore for the period.
Operational Capacity and Expansion
HEG Limited continues to solidify its position as a global leader in graphite electrode production. Having successfully completed an expansion to 100,000 tons in early 2024, the company is now moving forward with its next phase of growth, targeting a capacity of 115,000 tons by early 2028. This makes HEG the third-largest producer in the Western world, with a unique 80 MW captive power generation capacity supporting its operations.
Industry Outlook
The global steel industry is experiencing mixed trends. While Q1 2026 production volumes were down 2–3% YoY, there was an 8% QoQ recovery driven largely by China. The company notes that Electric Arc Furnace (EAF) steel production continues to grow globally, rising to 51% in 2024 (excluding China). HEG highlights that ongoing geopolitical conflicts are currently pressuring input costs and ocean freights, necessitating proactive price adjustments for graphite electrodes in the coming quarters to protect margins.
Strategic Market Position
HEG maintains a diversified global presence, exporting 65% to 70% of its production to approximately 35 countries. By supplying a significant portion of its output to the world’s top 20 steel companies, HEG remains resilient despite protectionist measures, such as CBAM in Europe, which favor low-emission, EAF-based steel—a structural shift that aligns well with HEG’s product capabilities.
Source: BSE
