HEG Limited , a prominent player in the Indian manufacturing sector, has recently been assigned an Environmental, Social and Governance (ESG) score of 66.2 by SESES ESG Research Pvt Ltd. This development marks a significant milestone in the company's ESG journey and provides valuable insights for investors and stakeholders.

Key Points of the ESG Score Assignment

• Score: 66.2
• Assessing Entity: SESES ESG Research Pvt Ltd
• Basis of Assessment: Publicly available data
• Company Involvement: HEG Limited did not engage SESES ESG Research for this rating

Details of the ESG Score Assignment

The ESG score assignment for HEG Limited comes with several important considerations:

1. Independent Assessment: SESES ESG Research Pvt Ltd conducted this evaluation independently, without any engagement from HEG Limited.

2. Data Source: The assessment was based solely on information available in the public domain, ensuring transparency and objectivity in the scoring process.

3. Regulatory Compliance: HEG Limited's disclosure of this ESG score aligns with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation was updated as per SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated 11th November, 2024.

4. Timing of Disclosure: The company received the summary of the ESG report on 19th November, 2025, and promptly disclosed this information to the stock exchanges on 20th November, 2025.

Implications of the ESG Score

The assigned ESG score of 66.2 provides a quantitative measure of HEG Limited's performance in environmental, social, and governance aspects. While the specific breakdown of the score across these three dimensions is not provided, this overall score offers stakeholders a general understanding of the company's sustainability and responsible business practices.

It's important to note that ESG scores can vary between different rating agencies due to differences in methodologies and data sources. Investors and other stakeholders should consider this score as one of many factors in their overall assessment of the company.

Conclusion

The assignment of an ESG score to HEG Limited by SESES ESG Research Pvt Ltd represents a step towards greater transparency in the company's sustainability practices. As ESG factors continue to gain importance in investment decisions and corporate evaluations, such independent assessments provide valuable data points for stakeholders. However, it's crucial to view this score in the context of broader financial and operational metrics when making investment or business decisions related to HEG Limited.

HEG Limited , a leading graphite electrode manufacturer, has reported robust financial results for the second quarter of fiscal year 2026, demonstrating resilience in the face of challenging market conditions. The company's performance highlights its operational efficiency and strategic positioning in the global graphite electrode industry.

Key Financial Highlights

HEG Limited achieved the following results in Q2 FY26:

The company's strong performance was primarily driven by higher sales volumes, while maintaining a high capacity utilization of 90% amid challenging graphite electrode market conditions.

Operational Performance and Market Dynamics

HEG Limited has demonstrated operational resilience by maintaining a high capacity utilization rate of over 90% in the first half of FY26. This is particularly noteworthy given the current subdued demand environment in the global steel industry. The company's ability to operate at such high levels showcases its competitive edge and operational efficiency.

Mr. Manish Gulati, Executive Director of HEG Limited, commented on the market conditions, stating, "The graphite electrode market continues to face challenging conditions. Customer demand remained muted due to cautious procurement and aggressive export pricing by Chinese suppliers, which intensified margin pressure for producers globally."

Despite these challenges, HEG Limited's single-location 100,000-ton production base, combined with India's structurally low-cost environment, positions the company as one of the most cost-efficient graphite electrode manufacturers globally.

Strategic Expansion and Future Outlook

HEG Limited has announced a capacity expansion of 15,000 tons with a capex of INR 650.00 crores, scheduled to be completed by the end of 2027. This expansion demonstrates the company's confidence in the medium to long-term growth trajectory of the industry, driven by the global transition towards low-emission electric arc furnace steelmaking.

The company remains debt-free with a healthy treasury size of INR 1,167.00 crores as of September 30, 2025, providing financial flexibility for future growth initiatives.

Industry Outlook and Challenges

While the current market conditions remain challenging, HEG Limited sees potential for improvement in the coming years. The global transition towards electric arc furnace steelmaking is expected to generate substantial incremental demand, estimated at approximately 200,000 tons of graphite electrodes by 2030, excluding China.

However, the company faces potential headwinds, including the recent imposition of a 50% reciprocal duty in the U.S. market. HEG Limited is hopeful that tariffs will settle to more reasonable levels in the coming times and emphasizes its well-diversified sales footprint across major global markets.

Conclusion

HEG Limited's strong Q2 FY26 performance, coupled with its strategic expansion plans and robust financial position, positions the company well to navigate current market challenges and capitalize on future growth opportunities in the graphite electrode industry. Investors should monitor global steel production trends and regulatory developments, as these factors may play a crucial role in shaping the company's future performance.