HEG Ltd – The Graphite Electrode Giant That Runs on Steel’s Mood Swings
1. At a Glance
HEG Ltd is basically that friend who makes one crucial party item—without it, the whole function collapses. It makes graphite electrodes, without which Electric Arc Furnaces can’t melt scrap steel. Their claim to fame? Running the largest single-site integrated graphite electrode plant in the world. Current problem? Steel demand is moody, Chinese supply is cheap, and HEG is stuck explaining why margins swing harder than a Sensex crash tweet.
2. Introduction
Founded in 1976, HEG is part of the LNJ Bhilwara Group, a family empire with interests ranging from IT-enabled services to textiles to power. But the real cash cow is graphite electrodes (GE). For those not in the loop: GE is to steel what tadka is to dal—small, invisible, but absolutely mandatory.
The trouble? Steelmakers treat GE suppliers like Swiggy treats delivery partners—important, but always under pressure for lower rates. HEG’s revenues have stayed flat (₹2,205 Cr FY25 vs ₹2,201 Cr FY22), while profits nosedived from ₹532 Cr in FY22 to just ₹197 Cr in FY25. Capacity expanded, power plants are captive, but shareholders are left asking: “Bro, sab kuch hai, lekin paisa kidhar hai?”
Question to you: would you bet on a company whose fortunes depend entirely on Chinese supply discipline and global steel demand cycles?
3. Business Model – WTF Do They Even Do?
Core Business (Graphite Electrodes): HEG sells UHP, HP, SHP grade electrodes in various diameters. Think of them as fancy carbon straws used by steelmakers.
Geography:
Domestic: 33% of sales
Exports: 67% (to 35+ countries, including the top 20 steel companies worldwide). Basically, HEG exports more carbon than most influencers.
Capacity:
1,00,000 TPA (expanded in FY24 from 80,000 TPA with ₹1,200 Cr capex).
Ran at 81% utilization in FY24.
Captive power: 80 MW.
New Bets:
20,000-ton Graphite Anode Plant (for batteries, completion by FY26).
TACC subsidiary dabbling in graphene derivatives and graphene textiles (yes, your future jeans may have HEG inside).
In short: they make steel-making consumables, want to enter EV batteries, and are experimenting with “graphene fashion week.”
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹617 Cr
₹571 Cr
₹542 Cr
+8.0%
+13.8%
EBITDA
₹105 Cr
₹39 Cr
-₹66 Cr
+169%
N.A.
PAT
₹105 Cr
₹23 Cr
-₹74 Cr
+355%
N.A.
EPS (₹)
5.43
1.19
-3.82
+355%
N.A.
Commentary: Quarter looks great—profits up 355% YoY—but remember, one quarter in electrodes is like one Virat Kohli century. Doesn’t mean he’ll score in every match.
👉 Fair Value Range = ₹150 – ₹300/share (Disclaimer: Educational only. Not investment advice. Don’t cry if steel prices crash again.)
6. What’s Cooking – News, Triggers, Drama
Capacity Expansion: Board approved another ₹650 Cr for 15,000 TPA graphite expansion over 30 months (because why not double down when prices are low?).
