1. Opening Hook
Global steel is slowing, China is exporting like there’s no tomorrow, and graphite electrode prices are flatter than investor patience in cyclicals. In the middle of this chaos, HEG calmly delivered a volume-led quarter and reminded everyone why scale plus cash still matters.
While peers are fighting breakeven demons, HEG ran plants at 90%+ utilization, grew revenues 23%, and kept margins intact—without a single rupee of debt. Management didn’t sugarcoat the cycle, didn’t promise miracles, and openly admitted Q3 will look a lot like Q2.
No price recovery yet. No tariff clarity yet. No demand boom yet.
But also: no panic, no leverage, and no idle capacity.
Read on—because this concall is less about excitement and more about survival instincts in a brutal commodity cycle. 😏
2. At a Glance
- Revenue up 23% YoY – Volumes did the heavy lifting; prices stayed in bed.
- EBITDA up 61% YoY – Operating leverage finally showed up to work.
- PAT (Standalone) ₹131 cr – Last year’s ₹62 cr now looks adorable.
- Utilization at 90%+ – While the industry naps at ~70%.
- Treasury ₹1,167 cr – Debt-free and bored of borrowing.
- Prices flattish QoQ – Steel customers still playing hard to get.
3. Management’s Key Commentary
“Global crude steel production declined 1.5% YoY.”
(Translation: Don’t expect miracles from demand just yet.)
“China’s exports surged despite lower production.”
(Translation: Dumping is alive, well, and annoying.) 😒
“We operated at 90%+ utilization for two consecutive quarters.”
(Translation: Someone has to run the plant while others shut lines.)
“Electrode prices and needle coke prices are flattish.”
(Translation: Margin math unchanged, thankfully.)
“U.S. duties are a headwind, but only 10–12% of our sales.”
(Translation: Painful, not fatal.)
“Industry prices firm up when utilization crosses 80–85%.”
(Translation: We’re early, not wrong.)
“We are long-term debt free and will remain so.”
(Translation: Banks can keep calling; we won’t pick up.) 😏
4. Numbers Decoded
Metric Q2 FY26
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Revenue ₹697 crore
EBITDA ₹226 crore
EBITDA Margin ~32%
