HEG Advanced Materials BESS revenue exceeds power in quarter

HEG Advanced Materials Limited reported Rs 429.94 crore of continuing-operations revenue for the quarter ended September 30, 2026, with battery energy storage system, or BESS, revenue of Rs 215.51 crore exceeding power revenue of Rs 212.20 crore. BESS recorded a segment loss of Rs 1.80 crore despite the revenue increase.

How did HEG Advanced Materials perform in the September 2026 quarter?

HEG Advanced Materials recorded Rs 429.94 crore in continuing-operations revenue in the September 30, 2026 quarter, compared with Rs 295.86 crore in the June 2026 quarter and Rs 175.94 crore a year earlier. Revenue increased by Rs 134.08 crore sequentially and Rs 254 crore year on year based on the reported consolidated figures.

Continuing-operations total income was Rs 546.59 crore, including Rs 116.65 crore of other income, against Rs 324.18 crore in the June quarter. Profit before tax from continuing operations rose to Rs 278.53 crore from Rs 92.10 crore sequentially, while profit after tax from continuing operations was Rs 208.89 crore, compared with Rs 60.19 crore in the previous quarter and Rs 69.18 crore a year earlier.

For the half year ended September 30, 2026, continuing-operations revenue was Rs 725.80 crore, compared with Rs 329.39 crore in the corresponding prior-year half. Continuing-operations profit after tax was Rs 269.07 crore, versus Rs 167.45 crore in the earlier period.

What drove HEG Advanced Materials’ continuing revenue growth?

HEG Advanced Materials’ BESS revenue was Rs 215.51 crore in the September 2026 quarter, ahead of Rs 212.20 crore from power. BESS revenue was Rs 110.76 crore in June 2026 and Rs 37.14 crore in the September 2025 quarter.

Power revenue rose from Rs 184.04 crore in the June quarter and Rs 133.36 crore a year earlier to Rs 212.20 crore. Consultancy revenue was Rs 1.66 crore, compared with Rs 1.63 crore sequentially, while inter-segment sales of Rs 0.57 crore reduced gross segment revenue to the reported continuing-operations total of Rs 429.94 crore.

For the half year, BESS generated Rs 326.27 crore of revenue, compared with Rs 35.25 crore in the prior-year half, while power contributed Rs 396.24 crore against Rs 281.82 crore. BESS was the larger reported revenue segment in the September quarter, whereas power remained larger over the six-month period.

HEG Advanced Materials said the group is mainly active in hydro and wind power, apart from consultancy and BESS, and is dependent on weather, wind and hydraulic conditions. It said most operations occur from April to September, meaning financial performance between periods is not directly comparable despite the reported revenue increases.

Did HEG Advanced Materials’ BESS business make a profit?

HEG Advanced Materials’ BESS segment reported a loss of Rs 1.80 crore in the September 2026 quarter, narrower than losses of Rs 13.41 crore in June 2026 and Rs 7.87 crore in the September 2025 quarter. The improvement coincided with BESS revenue rising to Rs 215.51 crore.

Power segment result was Rs 190.52 crore for the September quarter, compared with Rs 116.02 crore in June and Rs 102.03 crore a year earlier. Consultancy reported a segment loss of Rs 0.69 crore, against a Rs 0.84 crore loss in the preceding quarter, while other segments contributed Rs 5.86 crore.

The reported segment-result total from continuing operations was Rs 193.89 crore. Interest income of Rs 83.96 crore, gain on sale or fair valuation of investments of Rs 20.39 crore and finance costs of Rs 19.71 crore were among the items reconciling segment results to continuing-operations profit before tax of Rs 278.53 crore.

BESS assets stood at Rs 2,113.14 crore on September 30, 2026, compared with Rs 390.17 crore at March 31, 2026. The filing does not separately explain the individual components of this increase, but BESS accounted for most of the Rs 3,156.38 crore continuing-operations asset base at the reporting date.

What changed in HEG Advanced Materials’ balance sheet and cash flow?

HEG Advanced Materials’ consolidated total assets were Rs 4,436.04 crore at September 30, 2026, compared with Rs 7,833.57 crore at March 31, 2026. The company said the comparison is not direct because the graphite undertaking was demerged and its related assets and liabilities were derecognised after the scheme became effective on September 1, 2026.

The National Company Law Tribunal, Indore Bench, approved the composite scheme on August 13, 2026, with an appointed date of April 1, 2024. Under the arrangement, the graphite undertaking, including overseas investments and assets and liabilities related to the TAWA power plant, moved to HEG Limited and is presented as a discontinued operation in the income statement.

Cash and cash equivalents were Rs 244.41 crore at September 30, 2026, compared with Rs 121.94 crore at the beginning of the year. Net operating cash flow for the half year was Rs 431.84 crore, while investing activities used Rs 872.42 crore, including Rs 491.26 crore for property, plant, equipment, intangible assets and capital work-in-progress.

Financing activities generated Rs 620.10 crore in the half year, following Rs 325 crore of proceeds from issue of shares and Rs 50 crore of long-term borrowings. Non-current borrowings were Rs 1,035.92 crore and current borrowings were Rs 95.10 crore at September 30, 2026; HEG Advanced Materials also reported no default on loans or debt securities during the quarter.

Conclusion

HEG Advanced Materials’ continuing revenue in the September quarter was led by two similarly sized lines, with BESS at Rs 215.51 crore marginally above power at Rs 212.20 crore. BESS remained loss-making at Rs 1.80 crore, although its loss narrowed from the June quarter, while power’s Rs 190.52 crore segment result and Rs 116.65 crore of other income supported continuing-operations profit after tax of Rs 208.89 crore.

What to watch next is whether BESS reaches segment profitability after its Rs 1.80 crore September-quarter loss and how the September 1, 2026 scheme affects reported comparisons. Other disclosed unresolved matters include arbitration over NJC Hydro Power Limited’s Rs 25.47 crore upfront-premium refund claim, whose tribunal mandate expired on July 30, 2026, and management’s contemplated acquisition of the remaining 51% of Malana Power Company Limited by Chango Yangthang Hydro Power Limited.