HEG Limited delivered exceptional financial performance in Q3FY26 while announcing significant strategic initiatives during its Board meeting held on February 10, 2026, demonstrating strong operational efficiency and forward-looking corporate governance.

Financial Performance Highlights

The company reported remarkable growth across key financial metrics for the quarter ended December 31, 2025. Net profit witnessed substantial improvement, rising 43.65% year-on-year to ₹141.25 crores compared to ₹98.32 crores in Q3FY25.

Nine-Month Performance

The nine-month period showed even more impressive results, with net profit more than doubling to ₹343.91 crores from ₹162.99 crores in the corresponding period of the previous year. Revenue from operations increased 21.60% to ₹1,965.29 crores from ₹1,616.13 crores.

Board Meeting Outcomes and Strategic Initiatives

The Board of Directors approved several significant corporate actions during its February 10, 2026 meeting, reflecting the company's strategic expansion and governance enhancement initiatives.

Corporate Guarantee for Subsidiary Expansion

The Board granted corporate guarantee in favor of State Bank of India for credit facilities to be availed by TACC Limited, its wholly-owned subsidiary. The comprehensive facility structure includes:

Leadership Appointment

Salil Bawa was appointed as President - Investor Relations, bringing over 25 years of experience in investor relations and corporate communications. His extensive background includes senior roles at organizations such as HCL, Hughes, Bharti, Indo Star, Edelweiss, and Welspun Group.

Subsidiary Investment and Business Restructuring

The Board approved allotment of 4,00,00,000 Optionally Convertible Debentures of face value ₹100 each in TACC Limited, aggregating to ₹400 crores. Additionally, the Board approved winding up of the Medical Transcription Business of Bhilwara Infotechnology Limited due to AI technology adoption reducing manual transcription requirements.

Segment-wise Performance

The graphite segment remained the primary revenue contributor, generating ₹647.36 crores in Q3FY26 compared to ₹468.58 crores in Q3FY25. The power segment contributed ₹8.30 crores during the quarter. Segment results for graphite business showed strong profitability with ₹107.27 crores compared to ₹55.69 crores in the previous year.

Investment Gains and Other Income

Other income for Q3FY26 stood at ₹100.54 crores, including significant gains from fair value adjustments on investments. The company reported ₹62.91 crores in net gains on fair value of investments measured at FVTPL, with ₹66.06 crores specifically from Graftech International Limited equity shares.

Operational Efficiency

The company maintained strong operational metrics with total expenses of ₹576.10 crores in Q3FY26 compared to ₹456.62 crores in Q3FY25. Cost of materials consumed increased to ₹243.62 crores from ₹228.94 crores, while employee benefit expenses rose to ₹32.24 crores from ₹23.43 crores, partly due to implementation of new Labour Codes resulting in additional provision of ₹2.06 crores for gratuity and compensated absences.

HEG Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, alongside several strategic board decisions made during its meeting held on February 10, 2026.

Q3FY26 Financial Performance

The company delivered robust financial performance during the third quarter, demonstrating strong operational metrics across key parameters:

The consolidated results showed even stronger performance with net profit of ₹206.97 crores for Q3FY26 compared to ₹83.40 crores in Q3FY25, while nine-month consolidated profit reached ₹455.13 crores versus ₹188.73 crores in the previous year.

Board Meeting Outcomes

The board meeting, which commenced at 2:00 PM and concluded at 6:00 PM on February 10, 2026, addressed several strategic decisions:

Corporate Guarantee Approval

The board approved a corporate guarantee in favour of State Bank of India for credit facilities to be availed by TACC Limited, the company's wholly-owned subsidiary:

Senior Management Appointment

The board appointed Shri Salil Bawa as President - Investor Relations, effective February 10, 2026. Bawa brings over 25 years of experience in investor relations and corporate communications, with previous roles at organizations including Welspun Group, Edelweiss, and Bharti.

Subsidiary Business Decisions

Two significant subsidiary-related decisions were announced:

Medical Transcription Business Closure

The board approved the winding up of the medical transcription business of Bhilwara Infotechnology Limited, effective March 1, 2026. The closure is attributed to increasing AI technology adoption reducing manual transcription requirements and the sole client's decision to discontinue operations in India.

Equity Stake Transfer

Approval was granted for the transfer of 51% equity stake held by Bhilwara Energy Limited in Malana Power Company Limited to Chango Yangthang Hydro Power Limited, subject to shareholder approval and regulatory clearances.

OCD Subscription

The board noted the allotment of 4,00,00,000 unlisted and unsecured Optionally Convertible Debentures of TACC Limited, with a face value of ₹100 each, aggregating to ₹400 crores.

Earnings Conference Call

As previously announced, the company will conduct an earnings conference call on February 11, 2026, at 17:00 hrs IST through SKP Securities Ltd to discuss the Q3FY26 results with investors and analysts.