HEG (HEG) Q1 26/27 earnings summary

Executive summary

• Achieved strong recovery in Q1 FY27 with standalone revenue from operations rising to ₹681 crore, up 11% sequentially and 11% year-over-year.

• Standalone PAT reached ₹110 crore, reversing a loss of ₹163 crore in the previous quarter and up from ₹72 crore a year ago.

• 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.

• Consolidated profit before tax was ₹165 crore, compared to a loss of ₹145 crore in the previous quarter and profit of ₹121 crore in Q1 FY26.

Financial highlights

• Standalone revenue from operations for Q1 FY27 was ₹680.91 crore, up from ₹612.78 crore in Q1 FY26 and ₹603.21 crore in Q4 FY26.

• 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 net profit for Q1 FY27 was ₹109.50 crore, compared to ₹71.80 crore in Q1 FY26 and a net loss of ₹164.67 crore in Q4 FY26.

• Consolidated revenue from operations for Q1 FY27 was ₹680.79 crore, with consolidated net profit at ₹122.34 crore, compared to a net loss of ₹113.77 crore in Q4 FY26.

• Other income and expenses were significantly impacted by mark-to-market changes in investments, particularly in Graftech International Limited, USA.

Outlook and guidance

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

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

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

• Ongoing brownfield expansion will increase production capacity from 100,000 MT to 115,000 MT by 2028.

• Pending final NCLT approval, no adjustments have been made for the restructuring in the current quarter's results.