HEG Limited , a leading graphite electrode manufacturer, has expressed confidence in receiving exchange approval for its demerger proposal, which will subsequently be submitted to the National Company Law Tribunal (NCLT). The company expects to secure NCLT approval by April 2026, marking a significant step in its corporate restructuring plans.

Financial Performance

HEG Limited has reported robust financial results for the second quarter of the fiscal year 2025-26:

• Revenue Growth: The company's revenue from operations increased to ₹696.85 crore in Q2 FY25-26, up from ₹612.78 crore in the previous quarter and ₹567.60 crore in the same quarter last year.

• Profit Surge: Net profit for Q2 FY25-26 stood at ₹130.86 crore, showing a substantial increase from ₹71.80 crore in Q1 FY25-26 and ₹62.09 crore in Q2 FY24-25.

• Improved Margins: The EBITDA margin for Q2 FY25-26 was 28%, up from 23% in the previous quarter, indicating enhanced operational efficiency.

Key Financial Metrics

*Figures in ₹ crore, except EPS

Market Position and Outlook

HEG Limited maintains its position as one of the largest single-site graphite electrode plants globally, with a capacity of 100,000 tons per annum. The company has announced plans to expand its capacity to 115,000 tons by the end of 2027, reinforcing its commitment to growth and market leadership.

Despite challenging global market conditions, including a 1.5% year-on-year decline in global crude steel production for the first nine months of 2025, HEG Limited has demonstrated resilience. The company's strategic focus on the long-term expansion of Electric Arc Furnace (EAF) steelmaking, particularly in markets outside China, positions it well for sustained growth in graphite electrode demand through 2030 and beyond.

Conclusion

As HEG Limited progresses with its demerger plans and continues to deliver strong financial performance, the company appears well-positioned to navigate the evolving dynamics of the global steel and graphite electrode markets. Investors and industry observers will be keenly watching the developments in the coming months, particularly the anticipated NCLT approval for the demerger in April 2026.

HEG Limited , a leading graphite electrode manufacturer, has announced significant strategic decisions following its recent board meeting. The company's board has approved two major transactions that could shape its future growth and investment strategy.

Investment in TACC Limited

HEG's board has given the green light for a substantial investment of up to 6.33 billion rupees (approximately $76 million) in unsecured, unlisted optionally convertible debentures (OCDs) of TACC Limited, a wholly-owned subsidiary of HEG. This investment will be made through a Debenture Subscription Agreement, with the OCDs to be issued in one or more tranches.

Key features of the OCD investment include:

• Conversion Option: HEG has the discretion to convert the OCDs into equity shares of TACC Limited at any time before the redemption date.
• Coupon Rate: 0.01% per annum, payable annually, or as mutually agreed upon.
• Redemption: If not converted, the OCDs may be redeemed by TACC Limited on March 31, 2036, or an earlier agreed date, at a premium of 12.50% per annum compounded annually.

The proceeds from this issuance are earmarked for TACC Limited's research and development, business expansion, capital expenditure, working capital requirements, and other general corporate purposes.

Stake Sale in Texnere India Private Limited

In a separate development, HEG's board took note of a decision by its wholly-owned subsidiary, Bhilwara Infotechnology Limited (BIL), to sell its 26% stake in Texnere India Private Limited. This decision follows a previous business transfer agreement and shareholding arrangement. The proposed sale is based on a valuation report from a SEBI-registered Category-I Merchant Banker.

Additional Board Decisions

The board meeting also resulted in several other key decisions:

1. Appointment of New Executive

Shri Puneet Anand has been appointed as President and Group Chief Strategy Officer of HEG Limited, effective December 1, 2025. Anand, who will also serve as a Key Managerial Personnel, brings over 17 years of experience in strategy, transactions, tax, and family-owned enterprises.

2. Regulatory Matters

The board acknowledged receipt of show cause notices from the Office of the Deputy Commissioner (SGST) Mandideep Circle, Bhopal Division-2. These notices, for the tax periods FY 2019-20 and FY 2020-21, propose recovery of IGST refunds along with penalties amounting to 282.34 crore rupees for each tax period. HEG expressed confidence that their IGST refunds are in order and expects the matter to be resolved favorably.

These strategic moves by HEG Limited indicate the company's focus on strengthening its subsidiaries, optimizing its investment portfolio, and enhancing its leadership team. The substantial investment in TACC Limited, in particular, suggests a strong commitment to future growth and expansion in research and development capabilities.