HEG Advanced Materials Q2 FY27 Results: Net Profit Surges 58% YoY to ₹306 Crore

Key numbers

P/E Ratio	12.94Industry 43.7
Market Cap	₹4,644.2 CrGeneral Industrials
Promoter Holding	60.72%No pledge reported
1-Year Return	-59.28%vs Sector -2.2%

Key highlights

• Net profit for Q2 FY27 rose 58.4% YoY to ₹306 crore from ₹193 crore in the same period last year
• Revenue from operations witnessed a 144% YoY jump to ₹430 crore compared to ₹176 crore in Q2 FY26
• Operating margins remained robust at 51.0% for the quarter ended September 30, 2026
• Board approved expansion of anode project capacity from 20,000 MT to 44,000 MT with an investment of ₹1,606 crore
• New manufacturing plants for Crucibles and Graphene approved with a combined estimated cost of ₹975 crore
• Other income for the quarter stood at ₹117 crore, significantly higher than the ₹50.4 crore reported YoY

Corporate Restructuring and Scheme Implementation

The company has transitioned under a Composite Scheme of Arrangement effective September 1, 2026. This involved the demerger of the Graphite Undertaking into HEG Limited and the amalgamation of Bhilwara Energy Limited into the company. Consequently, the graphite operations are now classified as discontinued operations in these results.

The merger has been accounted for using the pooling of interest method, with prior period figures restated from the appointed date of April 1, 2024. This restructuring aims to streamline the group's focus on advanced materials, including anode active materials and energy storage solutions.

Strategic Capacity Expansion and Project COD

• Revised cost for Phase-1 of the 20,000 MT Anode project estimated at ₹2,350 crore with a target COD of June 27, 2027
• Approval granted for increasing anode capacity to 44,000 MT by March 2029 at an additional cost of ₹1,606 crore
• New Crucible manufacturing plant with 80,000 units per annum capacity approved for ₹475 crore investment
• Graphene manufacturing facility of 500 MT approved with an estimated outlay of ₹500 crore by September 2028
• The board also sanctioned an additional revolving loan of ₹50 crore for subsidiary Replus Engitech Private Limited

Focus on High-Growth Energy Segments

HEG Advanced Materials is aggressively positioning itself in the green energy supply chain. As of October 1, 2026, the battery segment order book reached ₹435.12 crore, supported by major contracts from Indus Towers for lithium-ion battery banks. Subsidiary Replus Engitech recently signed an MoU with Indus Towers to dedicate 1.5 GWh of BESS production capacity over two years.

Management guidance previously indicated a revenue target of ₹1,500 crore for the Greentech segment by Year 3, targeting a 35% EBITDA margin as the new facilities in Dewas, Madhya Pradesh, come online.

Project Progress and Regional Outlook

The Group's business interests and future opportunities in the jurisdiction will continue to be pursued through another subsidiary, enabling greater operational and administrative efficiency.

What to watch next

• Earnings conference call scheduled for November 5, 2026
• Conclusion of shareholder postal ballot e-voting on November 27, 2026
• Target COD for Phase-1 20,000 MT Anode project on June 27, 2027
• Target COD for 500 MT Graphene plant by September 2028

“The demerger of the Graphite Undertaking... has been given effect to in the Statement in accordance with the accounting treatment specified in the Scheme w.e.f the effective date i.e September 1, 2026.”

HEG Advanced Materials · financial snapshot

Share price	₹240.66
Market capitalisation	₹4,644.20 Cr
Revenue (annual)	₹2,568.50 Cr
Net profit (annual)	₹341.37 Cr
Revenue (latest quarter)	₹680.79 Cr+12.86% vs previous quarter
Net profit (latest quarter)	₹122.34 Cr+207.53% vs previous quarter
P/E (TTM)	12.94×Sector 51.86×
Promoter holding	60.72%+4.44% QoQ
FII holding	3.61%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.