HEG Advanced Materials approves ₹1,606 crore anode expansion

HEG Advanced Materials Limited approved ₹1,606 crore to expand anode capacity from 20,000 metric tonnes (MT) to 44,000 MT, with the additional 24,000 MT targeted for commercial operation by March 2029. The approval was disclosed on 3 November 2026 alongside results for the quarter and half year ended 30 September 2026.

What anode-capacity expansion did HEG Advanced Materials approve?

HEG Advanced Materials approved a ₹1,606 crore expansion of its anode-material capacity from 20,000 MT to 44,000 MT. The plan comprises the 20,000 MT Phase I facility, which is under construction at Dewas, and a further 24,000 MT Phase II facility planned at the same site.

The company has set June 2027 as the commercial operation date, or COD, target for the 20,000 MT Phase I plant and March 2029 for the additional 24,000 MT Phase II plant. Phase II is 4,000 MT larger than Phase I, lifting planned capacity by 120% from the initial 20,000 MT level.

HEG Advanced Materials did not disclose a separate allocation of the ₹1,606 crore capital expenditure between the two phases. The release describes the approval as an expansion of the current 20,000 MT anode plant to 44,000 MT, while identifying the two COD targets as the main operating milestones.

How far has HEG Advanced Materials progressed on Phase I?

HEG Advanced Materials reported 61% overall construction progress at its 20,000 MT Dewas Phase I anode-materials facility as of the 3 November 2026 release. The company retained June 2027 as the target COD for the first phase, leaving about eight months between the update and the stated operating target.

The company also reported progress of 72.25 for the Phase I process building, although the supplied release does not specify the unit for that figure. The 61% overall measure is lower than the process-building figure, indicating that the project update covers construction activities beyond that building.

Phase II is planned using the existing infrastructure, power connection and land at the Dewas site. HEG Advanced Materials said this additional 24,000 MT plant would take total anode capacity to 44,000 MT and has a March 2029 COD target.

Why is HEG Advanced Materials adding 24,000 MT in Phase II?

HEG Advanced Materials said the buildout is intended to serve demand from lithium-ion battery supply chains. Its Advanced Materials business, referred to as TACC in the release, cited expected global lithium-ion battery production growth from about 2.3 terawatt-hours (TWh) in 2025 to about 8 TWh by 2035.

The release also cited expected non-China anode demand of more than 1 million tonnes by 2030 as cell makers diversify supply chains. These figures are market projections cited by HEG Advanced Materials, not customer orders, sales guidance or contracted utilisation for the planned 44,000 MT capacity.

TACC's research and development pipeline includes silicon-doped and graphene-based anodes intended for higher energy density and faster charging. In October 2026, TACC received the Confederation of Indian Industry Award for Excellence in R&D 2026 in the Materials, Chemicals and Textiles, Large Enterprise category.

What other materials projects did HEG Advanced Materials approve?

HEG Advanced Materials also approved a ₹475 crore crucible project and a ₹500 crore graphene project with planned output of 500 metric tonnes per annum (MTPA). The company said the crucible project would provide backward integration and cost optimisation for the anode plant.

The two separate projects have combined stated capital expenditure of ₹975 crore, alongside the ₹1,606 crore anode-expansion approval. HEG Advanced Materials did not disclose commissioning dates, spending schedules or location details for either the crucible project or the 500 MTPA graphene project.

Management identified anode materials, graphene, battery energy storage and green power as areas for developing scalable businesses. Riju Jhunjhunwala, Chairman, Managing Director and Chief Executive Officer, said management's priorities include disciplined capital allocation, timely execution, customer development and improving the long-term competitiveness of each business.

What financial position accompanies the expansion decision?

HEG Advanced Materials reported consolidated cash and bank balances of ₹1,322.84 crore as of 30 September 2026, compared with the ₹1,606 crore anode-expansion approval. For H1 FY27, consolidated revenue from continuing operations was ₹725.80 crore, total income was ₹870.77 crore, earnings before interest, tax, depreciation and amortisation (EBITDA) was ₹438 crore, and profit after tax was ₹269.07 crore.

For Q2 FY27, HEG Advanced Materials reported revenue from continuing operations of ₹429.94 crore, EBITDA of ₹312.78 crore and profit after tax of ₹208.89 crore. Q2 therefore represented ₹429.94 crore of H1 FY27 continuing revenue of ₹725.80 crore and ₹312.78 crore of H1 FY27 EBITDA of ₹438 crore.

The company said current financial figures are not comparable with previous financial figures because of the demerger of HEG Limited. The HEG Composite Scheme became effective on 1 September 2026, transferring the graphite-electrodes business to HEG Limited and amalgamating Bhilwara Energy Limited into HEG Advanced Materials; reported results consequently separate continuing and discontinued operations.

Conclusion

The ₹1,606 crore approval sets out HEG Advanced Materials' planned increase from 20,000 MT to 44,000 MT of anode capacity, supported by 61% reported Phase I construction progress at Dewas. The plan sits alongside separately approved ₹475 crore crucible and ₹500 crore graphene projects, broadening the company's stated advanced-materials programme.

The next disclosed milestone is the June 2027 target COD for the 20,000 MT Dewas Phase I facility, followed by the March 2029 target for the extra 24,000 MT Phase II capacity. HEG Advanced Materials also flags that expansion timelines and capital-expenditure plans are forward-looking statements subject to risks and uncertainties, with actual outcomes potentially differing from current expectations.