HEG Advanced Materials approves Rs 4,931 crore projects

HEG Advanced Materials Limited approved about Rs 4,931 crore of anode, crucible and graphene projects on November 3, 2026, including a plan to raise anode capacity from 20,000 metric tonnes to 44,000 metric tonnes by March 2029. The first 20,000-metric-tonne anode phase has a revised estimated cost of about Rs 2,350 crore and a June 2027 target commercial operations date.

What projects has HEG Advanced Materials approved?

HEG Advanced Materials approved four advanced-materials investments: revised completion costs for a 20,000-metric-tonne anode Phase 1, a further 24,000-metric-tonne anode expansion, an 80,000-units-per-annum crucible plant and a 500-metric-tonne graphene plant. Their disclosed estimated costs total about Rs 4,931 crore, based on board approvals dated November 3, 2026.

The anode programme represents about Rs 3,956 crore of the announced total, comprising about Rs 2,350 crore for Phase 1 and about Rs 1,606 crore for the expansion. The remaining about Rs 975 crore comprises about Rs 475 crore for crucibles and about Rs 500 crore for graphene, with target commercial operations dates, or CODs, ranging from June 2027 to March 2029.

HEG Advanced Materials also approved an alteration to its main objects clause, subject to shareholder approval, to include anode, graphene, crucible, advanced carbon materials and allied materials. The proposed amendment accompanies the Rs 4,931 crore project programme rather than a completed change to the company’s memorandum of association.

How much anode capacity will HEG Advanced Materials add?

HEG Advanced Materials plans to add 24,000 MT of anode capacity to its 20,000 MT Phase 1 project, taking planned capacity to 44,000 MT by March 2029. The additional capacity is 120% of the original Phase 1 capacity and carries an estimated investment of about Rs 1,606 crore.

Phase 1 has a revised estimated completion cost of about Rs 2,350 crore, with a June 2027 target COD. The filing said the 20,000 MT plant remains under construction, so capacity utilisation was not applicable at the time of the November 3, 2026 board approval.

The company disclosed debt and equity as the financing mode for the Rs 1,606 crore expansion. It did not disclose the debt-equity split, the financing arrangement for the Rs 2,350 crore Phase 1 project, anode customers, offtake agreements, pricing or a yearly construction-spending schedule.

HEG Advanced Materials said the expansion is aligned with its strategic objectives and is expected to strengthen the subsidiary’s operating capabilities and support future business requirements. TACC Limited, a wholly owned subsidiary, was included in the board approvals, and its Managing Director and Chief Executive Officer Ankur Khaitan was designated senior management personnel on November 3, 2026.

What will the crucible and graphene plants produce?

HEG Advanced Materials approved an 80,000-units-per-annum crucible plant at an estimated cost of about Rs 475 crore, with a September 2028 target COD. The filing identifies crucibles as an advanced carbon-materials line and says the project is expected to support backward integration, procurement-cost optimisation and operational efficiencies at the subsidiary.

The board also approved a 500 MT graphene manufacturing plant, to be built in two phases by wholly owned subsidiary HEG Graphene Materials Limited, at an estimated cost of about Rs 500 crore. Its target COD is September 2028, and management said the project is expected to create a new avenue for business growth through the subsidiary.

The projects use different capacity measures: the crucible plant is measured in annual units, while the graphene facility is measured in MT. HEG Advanced Materials did not disclose the capacity split between graphene’s two phases, product specifications, location, funding mix, customer arrangements or projected revenue for either the Rs 475 crore crucible project or the Rs 500 crore graphene project.

How does the plan fit HEG Advanced Materials after the demerger?

HEG Advanced Materials is undertaking the investments after the graphite undertaking was demerged into HEG Limited, formerly HEG Graphite Limited, effective September 1, 2026. The National Company Law Tribunal’s Indore Bench approved the composite scheme on August 13, 2026, and the company has classified the graphite undertaking as a discontinued operation.

The separation affects comparisons between reporting periods. For the half year ended September 30, 2026, consolidated continuing-operations revenue was Rs 725.80 crore, compared with Rs 329.39 crore in the corresponding prior-year half, while discontinued graphite revenue was Rs 1,207.36 crore compared with Rs 1,309.63 crore.

Within continuing operations, battery energy storage system revenue was Rs 326.27 crore for the half year ended September 30, 2026, up from Rs 35.25 crore a year earlier. Power revenue rose to Rs 396.24 crore from Rs 281.82 crore, although HEG Advanced Materials said hydro and wind activity is seasonal and generally concentrated between April and September.

The company said its September 30, 2026 balance sheet is not directly comparable with earlier balance sheets because graphite assets and liabilities were derecognised after the demerger. Consolidated capital work in progress was Rs 669.63 crore at September 30, 2026, compared with Rs 301.56 crore at March 31, 2026.

What funding and execution indicators has HEG Advanced Materials disclosed?

HEG Advanced Materials reported Rs 491.26 crore of consolidated payments for property, plant and equipment, intangible assets and capital work in progress in the half year ended September 30, 2026, compared with Rs 75.71 crore in the prior-year half. That reported spending predates the November 3 approvals for the about Rs 4,931 crore advanced-materials programme.

Consolidated capital work in progress increased by Rs 368.07 crore between March 31, 2026 and September 30, 2026, reaching Rs 669.63 crore. The filing does not allocate this capital work in progress between the 20,000 MT anode plant, battery energy storage activities, power assets or other projects.

Separately, the board approved an additional revolving loan of Rs 50 crore to subsidiary Replus Engitech Private Limited for business activities and cash-flow shortfalls. The unsecured loan is repayable on demand and carries 9% annual interest; HEG Advanced Materials held 74% of Replus and reported Rs 36.75 crore outstanding to it as of September 30, 2026, excluding the new loan.

Conclusion

HEG Advanced Materials has set out a multi-year advanced-materials investment programme of about Rs 4,931 crore, led by anode capacity planned to rise from 20,000 MT to 44,000 MT. Crucibles and graphene account for about Rs 975 crore of the programme, extending the planned manufacturing lines beyond anode materials after the September 1, 2026 graphite demerger.

The next disclosed milestones are June 2027 for the 20,000 MT anode Phase 1, September 2028 for the crucible and graphene plants, and March 2029 for the additional 24,000 MT anode capacity. Investors can watch for shareholder action on the objects-clause amendment and for further disclosures on funding allocation, construction progress, phase-wise graphene capacity and customer or offtake arrangements.