HEG Advanced Materials approves ₹1,606 crore anode expansion

HEG Advanced Materials Limited has approved ₹1,606 crore to expand planned anode-material capacity at Dewas to 44,000 metric tonnes (MT), with 20,000 MT targeted for commercial operation by June 2027 and the remaining 24,000 MT by March 2029. The approval was announced on 3 November 2026 alongside results for the half year ended 30 September 2026.

What has HEG Advanced Materials approved for its anode plant?

HEG Advanced Materials has approved a phased ₹1,606 crore programme to establish 44,000 MT of anode-material capacity at Dewas. The programme comprises the 20,000 MT Phase I facility under construction and a further 24,000 MT Phase II plant, with the board approval disclosed on 3 November 2026.

The anode plan is directed at materials used in lithium-ion batteries. HEG Advanced Materials cited industry projections for global lithium-ion battery production to rise from about 2.3 terawatt-hours (TWh) in 2025 to about 8 TWh by 2035, while non-China anode demand is projected to exceed 1 million tonnes by 2030. Those figures are market projections cited by the company, not sales or volume guidance for HEG Advanced Materials.

When will HEG Advanced Materials bring anode capacity online?

HEG Advanced Materials targets commercial operation of the first 20,000 MT facility in June 2027 and of the additional 24,000 MT facility in March 2029. The schedule places the targeted full 44,000 MT capacity roughly 21 months after the intended start of Phase I, subject to the execution risks identified in the company’s forward-looking statement.

Phase I construction had reached 61% overall progress when HEG Advanced Materials issued its 3 November 2026 release. The company said Phase II would use the Dewas site's existing infrastructure, power connection and land, making it an addition at the same site rather than a separately disclosed location.

HEG Advanced Materials did not disclose how the ₹1,606 crore capital expenditure is divided between the 20,000 MT and 24,000 MT phases. It also did not provide an anode-product qualification timetable, customer names, contracted volumes or a financing plan for either phase.

How does the Dewas project fit HEG Advanced Materials’ materials plans?

HEG Advanced Materials has separately approved a ₹475 crore crucible project for backward integration and cost optimisation with the anode plant. The stated mechanism is to build an upstream capability connected with anode production, although the 3 November 2026 announcement gives no crucible capacity, commissioning date or quantified cost-saving target.

The board also approved a graphene project with capacity of 500 metric tonnes per annum (MTPA) and capital expenditure of ₹500 crore. Together with the ₹1,606 crore anode expansion and ₹475 crore crucible project, the three disclosed approvals total ₹2,581 crore, but HEG Advanced Materials has not provided a combined schedule or funding split.

Alongside capacity construction, HEG Advanced Materials said its research and development pipeline includes silicon-doped and graphene-based anodes designed for higher energy density and faster charging. Its advanced-materials business received the Confederation of Indian Industry Award for Excellence in R&D 2026 in the Materials, Chemicals & Textiles, Large Enterprise category in October 2026.

What financial context accompanies the anode expansion?

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 approved anode programme announced on 3 November 2026. The release does not state that cash balances will finance the project and does not identify debt, equity or internal accruals as a funding source.

For H1 FY27, HEG Advanced Materials reported consolidated revenue from continuing operations of ₹725.80 crore, total income of ₹870.77 crore, earnings before interest, tax, depreciation and amortisation (EBITDA) of ₹438 crore, and profit after tax of ₹269.07 crore. In Q2 FY27, revenue from continuing operations was ₹429.94 crore, EBITDA was ₹312.78 crore and profit after tax was ₹208.89 crore.

The Q2 FY27 revenue figure was higher than the balance of ₹295.86 crore represented by the other quarter within H1 FY27, while Q2 EBITDA exceeded the H1 balance of ₹125.22 crore. However, HEG Advanced Materials said current figures are not comparable with previous financial figures because the HEG Composite Scheme became effective on 1 September 2026.

Under that scheme, the graphite-electrodes business was transferred to HEG Limited, while Bhilwara Energy Limited was amalgamated into HEG Advanced Materials. The company now presents continuing and discontinued operations separately, which limits like-for-like comparison with reported periods before the 1 September 2026 restructuring.

What other operating businesses did HEG Advanced Materials report?

HEG Advanced Materials said REPLUS Engitech had deployed more than 1 gigawatt-hour (GWh) of energy-storage capacity across battery energy storage systems, electric mobility, telecom power solutions and hybrid-energy applications. REPLUS operates a 1 GWh Giga Factory in Pune and has a 5 GWh high-speed, fully automatic prismatic-line expansion under construction, intended to raise manufacturing capacity to 6 GWh on completion.

The green-power businesses have 278 megawatts (MW) of hydroelectric capacity in Himachal Pradesh through the 86 MW Malana Power Company Limited project and the 192 MW AD Hydro Power Limited project. HEG Advanced Materials also reported a 14 MW wind project in Maharashtra, while its existing hydro assets generate annual stable cash flows of more than ₹300 crore, according to the release.

A 200 megawatt-hour (MWh) battery energy storage system independent power producer project in Gujarat for Gujarat Urja Vikas Nigam Limited had reached 64% progress. The project has total capital expenditure of ₹227.8 crore and targets commissioning in Q3 FY27, providing another disclosed operational milestone alongside the June 2027 and March 2029 anode targets.

Conclusion

The ₹1,606 crore approval sets out HEG Advanced Materials’ planned increase from a 20,000 MT Phase I anode facility to 44,000 MT at Dewas by March 2029. The anode programme is accompanied by a ₹475 crore crucible project for backward integration and a ₹500 crore graphene project, linking manufacturing scale with adjacent materials initiatives.

The next disclosed milestones are Phase I commercial operation targeted for June 2027, Phase II completion targeted for March 2029 and commissioning of the 200 MWh Gujarat storage project in Q3 FY27. Progress against the reported 61% Phase I construction level, along with any later disclosure of anode funding, customer development or phase-wise spending, will clarify execution of the approved plan.