HEGQ1 FY27
HEG Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹722P/E: 38.7Market Cap: ₹13.7K CrSector: Industrial Products
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
N/A
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 2- →HEG aims to produce at 90% to 95% capacity utilization consistently (Page 17).
- →New electric arc furnace (EAF) capacities globally, especially outside China, are expected to increase demand for graphite electrodes (Page 17).
- →Anode project commercial production to start Q1 next year, with expected revenue of INR 600-700 crores in year 1, scaling over INR 1,200 crores in year 2 and INR 1,500-1,600 crores in year 3 (Page 13).
- →The Greentech business targets a 4-digit crore EBITDA by 2030, driven by hydro and solar projects (Page 13).
- →Price hikes of 5%-7% already implemented; further 5%-10% increase expected to cover rising costs including needle coke (Pages 11-13).
- →70% of graphite electrode capacity contracts are being finalized for 3-5 years, indicating stable volume outlook (Page 10).
- →New EAF steel capacities of around 60 million metric tons planned for 2026-28 will drive electrode demand (Page 9).
Margin guidance
Category 3- HEG aims to maintain current EBITDA margins (~28-29%) and sustain higher margins than competitors.
- Anode project ramp-up: expected revenue of INR 600-700 crore in Year 1, growing to INR 1,200 crore in Year 2 and INR 1,500-1,600 crore in Year 3 with ~35% EBITDA margin.
- Bhilwara Energy hydro plants (300 MW) generate INR 320-350 crore cash flow annually; additional hydro and solar projects to add INR 200 crore EBITDA by 2030.
- Overall Greentech business targets a 4-digit crore EBITDA by 2030.
- Price hikes (5-10%) expected to offset 10-15% rise in input costs including needle coke; price increases to reflect from Q3/Q4 FY27 onwards.
- Capacity utilization expected around 90-95%; no significant volume growth beyond this due to operational limitations.
- Strong balance sheet and cash flows support growth with planned capacity expansion to 115,000 tons by early 2028.
Overall, HEG projects steady revenue and profit growth driven by capacity expansion, pricing power, and Greentech investments through 2030.
3 more insights locked — sign up free to unlock
Fundraise plans
Yes- →HEG Limited has undertaken borrowing of around INR1,200 crores to buy a 49% stake in Malana Power from Statkraft, funded 50% by commercial banks and 50% from family office and BEL.
- →Post-merger with Greentech, about INR600 crores debt is already on BEL's books through subsidiaries; management expects retirement of most debts by then.
- →For the anode project (capex INR2,200 crores), 40% capex already spent; majority to be spent in next 3 quarters with 90-95% payment by FY '27 and balance by FY '28 Q1.
- →TACC expansion (INR3,100 crores capex for 30,000 tons) is expected to be funded 70% by debt and 30% internal accruals.
- →Greentech entity will hold about INR1,500 crores gross debt by March 2027, which may increase with additional capex.
- →The company remains debt-free at the parent level and maintains a strong liquidity position (INR858 crores treasury as of June 2026).
Order book
- →HEG Limited's current order book is mostly booked for the next 1 to 2 quarters.
- →Approximately 70% of the capacity contracts are expected to be closed within the next 1 to 1.5 months.
- →The company is securing long-term contracts (3 to 5 years) with top Tier 1 customers globally.
- →New bookings are being made at higher prices in existing markets.
- →Pricing increases are expected to take effect from October onwards due to cost rises in raw materials like needle coke.
- →Management is cautious about specifying exact dollar pricing but confirms contracts cover near-term production.
- →They continue to explore various markets and customers for new orders to optimize prices and volumes.
Capex plans
Yes- →Anode project capex: INR 2,200 crores for 20,000 tons capacity, expected to start commercial production in Q1 FY '28 with initial 40%-50% utilization, ramping up by year 3. (Page 14)
- →Post 20,000 tons anode capacity, expansion plan to add 10,000 tons more at approx. INR 800 crores capex, targeted by 2029. (Page 14)
- →Total capex for 30,000 tons capacity at TACC is around INR 3,100 crores, with 70% expected to be financed via debt. (Page 11)
- →Greentech business includes hydro projects (300 MW) generating free cash flow of INR 320-350 crores annually; one more hydro project (75 MW) expected by 2030, solar project (300 MW) planned in 18 months adding INR 200 crores EBITDA. (Page 13)
- →Debt secured for TACC is around INR 1,240 crores; total gross debt expected around INR 1,500 crores by March 2027. (Page 11)
How does HEG rank vs peers in Industrial Products?
Pro feature1HEG
Rev 2Mar 3
See full Industrial Products sector rankings
How does HEG rank in Industrial Products?
Compare HEG against every Industrial Products company (Q1 FY27) on revenue, margins and earnings-call signals.