Shares of HEG Advanced Materials Ltd, a leading electrode manufacturer, experienced an 11% jump in trading today, reaching Rs 266.80. The surge follows the company's announcement of strong second-quarter earnings and a significant capacity expansion plan for its anode plant.
Robust Q2 Financial Performance
HEG Advanced Materials reported impressive financial results for Q2 FY27. Revenue soared by 144% year-over-year to Rs 429.94 crore, compared to Rs 175.94 crore in the same period last year. Net profit saw a substantial increase, rising to Rs 208.89 crore from Rs 69.18 crore previously. The company's EBITDA also climbed to Rs 312.78 crore, contributing to a total income of Rs 546.59 crore for the quarter.
It is important to note that these current financial figures are not directly comparable to previous periods due to the HEG Composite Scheme, which became effective on September 1, 2026. Under this scheme, the graphite electrodes business was transferred to HEG Limited, and Bhilwara Energy Limited was amalgamated into the company, leading to separate reporting for continuing and discontinued operations.
Major Anode Plant Capacity Expansion
In a strategic move to boost future growth, HEG Advanced Materials' board has approved a substantial expansion of its anode plant. The current 20,000 metric tons (MT) capacity will be more than doubled to 44,000 MT. This expansion will be implemented in phases, with 20,000 MT becoming operational by June 2027 and the remaining 24,000 MT by March 2029. The total capital expenditure for this project is estimated at Rs 1606 crore.
Strategic Outlook from Leadership
Riju Jhunjhunwala, Chairman, MD & CEO of HEG Advanced Materials Limited, commented on the results, stating, “Q2 FY27 reflects our continued progress towards building HEG Advanced Materials into a technology-led, globally competitive advanced materials platform. Our focus is on strengthening R&D, developing proprietary technologies, and creating differentiated, scalable businesses across anode materials, graphene, battery energy storage, and green power.”
Stock Performance and Future Projections
The stock's market capitalization rose to Rs 8556 crore following the news. Over the past two weeks, HEG shares have gained 24%, and they are up 17.4% in the last six months. Trading volume saw 4.76 lakh shares change hands on the BSE, amounting to a turnover of Rs 12.40 crore.
For the first half of FY27, consolidated revenue from continuing operations stood at Rs 725.80 crore, with a total income of Rs 870.77 crore. EBITDA for H1 FY27 reached Rs 438 crore, and profit after tax was Rs 269.07 crore. As of September 30, 2026, the company reported consolidated cash and bank balances of Rs 1322.84 crore, indicating a strong financial position to support its ambitious expansion plans.