WHAT HAPPENED

Heg received a confirmed work order worth Rs 217.56 crore from Indus Towers Limited (formerly Bharti Infratel Limited) for the supply of Lithium-Ion Battery Banks, with deliveries scheduled on or before March 31, 2027.

ORDER IN FINANCIAL CONTEXT

The Rs 217.56 crore order value represents approximately 0.28 quarters of the company's average quarterly revenue of Rs 767.83 crore. The total disclosed order book across the last 3 fiscal quarters stands at Rs 217.56 crore from 1 order, equivalent to 0.07 years of annual revenue at the current run-rate. The order value is inclusive of tax, as per the filing disclosure.

COMPANY ORDER TRACK RECORD

ORDER DETAILS

The transaction does not fall under related party transactions, and no promoter interest has been disclosed in connection with this order.

EXECUTION AND REVENUE QUALITY

Recent quarterly results show volatility in profitability. Q4FY26 recorded a net loss of Rs 113.80 crore and a negative OPM of -24.58%. Q1FY27 recorded a net profit of Rs 122.30 crore and an OPM of 22.12%.

ANNUAL REVENUE AND PROFITABILITY

Heg's annual revenue grew from Rs 2280.30 crore in FY25 to Rs 2709.50 crore in FY26, a YoY increase of +18.8%. Net profit rose by +185.0% in FY26 compared to FY25, reaching Rs 338.00 crore.

WORKING CAPITAL AND EXECUTION CAPACITY

The balance sheet shows a current ratio of 2.21x and total liabilities/equity of 0.30x (a proxy figure that includes trade payables and other non-debt liabilities, not just interest-bearing debt). Operating cashflow in FY26 was Rs 213.20 crore. Free cashflow was -Rs 39.50 crore in FY26, reflecting capex of Rs 252.70 crore.

KEY OBSERVATIONS

• Order classification: The Rs 217.56 crore order from Indus towers limited is classified as Large, with execution due on or before March 31, 2027.
• Order book coverage: Disclosed order book of Rs 217.56 crore represents 0.28 quarters of average quarterly revenue of Rs 767.83 crore.
• Quarterly profitability: Net loss of Rs 113.80 crore in Q4FY26; net profit of Rs 122.30 crore in Q1FY27.
• Valuation context (as of 18 Sep 2026): Stock P/E of 12.2x against ROCE of 9.09% and ROE of 7.1%, as of the date of this filing.
• Balance sheet: Current ratio of 2.21x and reserve and surplus of Rs 4719.30 crore as of FY26.

The promoter group of HEG Advanced Materials Limited has increased its shareholding in the company from 56.28% to 60.72% following the completion of a composite scheme of arrangement.

This disclosure was made by LNJ Spark Advisory LLP under Regulation 10(6) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, on September 17, 2026. The increase stems from the allotment of shares pursuant to the scheme involving HEG Advanced Materials Limited (formerly HEG Limited), HEG Graphite Limited, and Bhilwara Energy Limited.

Promoter Group Shareholding

The acquisition was exempted from making an open offer under Regulation 10(1)(d)(ii), which covers acquisitions pursuant to a scheme of arrangement involving the target company as a transferee or transferor. The overall promoter holding now stands at 60.72% of the total share capital.

Scheme Context

The scheme was sanctioned by the Hon'ble NCLT, Indore Bench, on August 13, 2026. Under the terms, eligible shareholders received 8 equity shares of HEG Advanced Materials for every 7 equity shares of Bhilwara Energy held as on the record date of September 1, 2026.

Previously, Singularity Funds and its persons acting in concert had acquired a 13.04% stake through the same scheme, involving the allotment of 43,070,852 equity shares. The total equity share capital of HEG Advanced Materials increased from 385,955,060 shares before the acquisition to 659,597,824 shares after the allotment.

What the Numbers Show

The promoter group's stake increased by 4.44 percentage points, yet remains below the 75% threshold often associated with maximum promoter concentration in listed entities. Notably, while the absolute number of shares held by Norbury Investments and Microlight Investments remained unchanged, their percentage stakes diluted significantly due to the fresh issuance of shares to other promoter entities like LNJ Spark Advisory LLP and Redrose Vanijya LLP. This indicates that the new shares were allocated primarily to specific entities within the concert party rather than being distributed pro-rata across all existing promoter holdings.