HEG Advanced Materials (HEGAM) investor relations material

Executive summary

• Q1 FY27 saw strong profitability and high capacity utilization above 90%, with standalone revenue from operations rising 11% year-over-year to ₹681 crore and standalone PAT reaching ₹110 crore, reversing a loss in the previous quarter.

• Consolidated profit before tax was ₹165 crore, compared to a loss of ₹145 crore in the previous quarter.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved and reviewed without qualification by statutory auditors.

• The company is progressing with a major restructuring, including a proposed name change to HEG Advanced Materials Limited and a composite scheme of arrangement involving demerger and amalgamation.

Financial highlights

• Standalone EBITDA for Q1 FY27 was ₹211 crore, with a margin of 29%, up from 23% in Q1 FY26 and a negative margin in Q4 FY26.

• Standalone profit after tax surged 53% year-over-year to ₹110 crore.

• Standalone EPS for the quarter was ₹5.67, compared to ₹3.72 in Q1 FY26 and a loss per share of ₹8.46 in Q4 FY26.

• Investments (including cash) stood at ₹858 crore at the end of Q1 FY27.

• Short-term borrowings at quarter-end were ₹793 crore.

Outlook and guidance

• The company is realigning its long-term strategy towards advanced manufacturing and value-added materials, as reflected in the proposed name change.

• Global steel demand is forecast to grow 0.3% in 2026 and 2.2% in 2027, with India leading at 7.4% in 2026.

• Robust expansion in electric arc furnace (EAF) capacity globally is expected to drive long-term demand for graphite electrodes.

• Price hikes announced by global peers will reflect in earnings from October onwards, as most contracts are booked in advance.

• Management expects to maintain EBITDA margins at 28%-29% in coming quarters.