HEG Advanced Materials H1 revenue reaches Rs 725.8 crore

HEG Advanced Materials reported H1 FY27 consolidated revenue from continuing operations of Rs 725.8 crore and profit after tax, or PAT, of Rs 269.1 crore, compared with Rs 329.4 crore and Rs 167.5 crore respectively in H1 FY26. The presentation says hydro and wind conditions make the group’s operations seasonal and period comparisons not directly comparable.

What were HEG Advanced Materials’ H1 FY27 continuing-operations results?

HEG Advanced Materials’ continuing-operations revenue was Rs 725.8 crore in H1 FY27, while total income reached Rs 870.8 crore after Rs 145 crore of other income. Continuing-operations earnings before interest, tax, depreciation and amortisation, or EBITDA, were Rs 438 crore, and profit before tax, or PBT, was Rs 370.6 crore after finance costs of Rs 38.8 crore and depreciation of Rs 28.6 crore.

PAT from continuing operations was Rs 269.1 crore in H1 FY27 after a tax cost of Rs 101.5 crore. The H1 outcome was weighted towards Q2 FY27: revenue from continuing operations was Rs 429.9 crore in Q2, against Rs 295.9 crore in Q1, while PAT was Rs 208.9 crore in Q2 and Rs 60.2 crore in Q1.

How did HEG Advanced Materials’ continuing business change from H1 FY26?

HEG Advanced Materials increased continuing-operations revenue by Rs 396.4 crore from H1 FY26 to H1 FY27, while PAT increased by Rs 101.6 crore. Revenue rose from Rs 329.4 crore, and EBITDA increased from Rs 270 crore to Rs 438 crore, although operating expenses also rose from Rs 153.5 crore to Rs 432.8 crore.

The quarter-on-quarter pattern differed from the half-year comparison. Q2 FY27 revenue of Rs 429.9 crore was Rs 134 crore above Q1 FY27, and Q2 PAT of Rs 208.9 crore was Rs 148.7 crore above Q1. Finance costs were broadly similar at Rs 19.7 crore in Q2 and Rs 19.1 crore in Q1, whereas Q2 other income was Rs 116.7 crore compared with Rs 28.3 crore in Q1.

HEG Advanced Materials cautions against treating these movements as directly comparable operating trends. The presentation says the group is mainly in hydro and wind power, alongside consultancy and battery energy storage systems, or BESS, and that weather, wind and hydraulic conditions affect output. It states that most operations usually take place from the start of summer through the end of the rainy season, generally within April to September or less.

What did demerged operations contribute to HEG Advanced Materials’ consolidated earnings?

HEG Advanced Materials reported Rs 1,207.4 crore of H1 FY27 revenue from demerged operations and Rs 192.3 crore of PAT from those operations. Including continuing and demerged businesses, consolidated net revenue was Rs 1,933.2 crore, total income was Rs 2,146.6 crore and net PAT was Rs 461.4 crore.

The demerged-operations revenue was lower than Rs 1,309.6 crore in H1 FY26, a decline of Rs 102.2 crore, while PAT rose from Rs 182.6 crore to Rs 192.3 crore. PBT from demerged operations increased from Rs 230.8 crore to Rs 261.6 crore, with tax costs rising from Rs 48.2 crore to Rs 69.3 crore.

This creates a contrast within the consolidated statements. Continuing-operations revenue rose by Rs 396.4 crore year on year, whereas revenue from demerged operations fell by Rs 102.2 crore. The combined H1 FY27 net revenue of Rs 1,933.2 crore was Rs 294.2 crore above H1 FY26’s Rs 1,639 crore, and combined PAT of Rs 461.4 crore was Rs 111.3 crore above Rs 350.1 crore.

What changed in HEG Advanced Materials’ consolidated balance sheet?

HEG Advanced Materials’ consolidated total assets were Rs 4,436 crore at H1 FY27, up from Rs 3,298.7 crore at FY26, while equity rose to Rs 2,509.8 crore from Rs 1,882.4 crore. Non-current assets increased by Rs 468.6 crore to Rs 2,316.1 crore, including net fixed assets of Rs 1,974.4 crore, compared with Rs 1,581.3 crore at FY26.

Borrowings increased across the balance sheet. Non-current borrowings were Rs 1,035.9 crore at H1 FY27, versus Rs 767.8 crore at FY26, while current borrowings were Rs 95.1 crore versus Rs 99.4 crore. Together, these categories amounted to Rs 1,131 crore at H1 FY27, Rs 263.8 crore above the Rs 867.2 crore total at FY26.

Current assets increased to Rs 2,119.9 crore from Rs 1,451.2 crore. Cash and bank balances rose by Rs 398 crore to Rs 1,322.8 crore, while inventories increased to Rs 100.5 crore from Rs 57.1 crore. Trade payables also rose to Rs 344.1 crore from Rs 164.6 crore, and total current liabilities increased to Rs 644.6 crore from Rs 400.8 crore.

Why does HEG Advanced Materials flag comparability and seasonality?

HEG Advanced Materials says its financial performance is not directly comparable because hydro and wind generation depend on weather, wind and hydraulic conditions. The company identifies the period from the beginning of summer through the rainy season, usually April to September, as the period in which a majority of operations occurs, which helps explain the Q2 FY27 contribution of Rs 429.9 crore of continuing revenue.

The presentation also says FY26 comparative consolidated financial information was restated to exclude the demerged graphite undertaking, providing a like-for-like basis for future comparison. On the standalone balance sheet, it similarly says FY26 information was restated without HEG Graphite financials; standalone total assets at H1 FY27 were Rs 2,146.4 crore, compared with Rs 1,782.1 crore at FY26.

For consolidated reporting, the distinction remains material because the statements separately show Rs 725.8 crore of continuing-operations revenue and Rs 1,207.4 crore from demerged operations in H1 FY27. The company’s seasonal qualification applies to the group’s hydro, wind, consultancy and BESS activities, so the presentation itself limits conclusions drawn solely from sequential or annual comparisons.

Conclusion

HEG Advanced Materials’ H1 FY27 accounts show a continuing business that generated Rs 725.8 crore in revenue and Rs 269.1 crore in PAT, alongside Rs 1,207.4 crore of revenue and Rs 192.3 crore of PAT from demerged operations. At the consolidated level, net revenue reached Rs 1,933.2 crore and PAT reached Rs 461.4 crore, while total assets increased to Rs 4,436 crore.

The next reporting periods will show how output develops outside the season the company identifies as generally running from April to September. Readers can also watch consolidated borrowings, which totalled Rs 1,131 crore at H1 FY27 across current and non-current categories, and the continued effect of the FY26 restatement excluding the demerged graphite undertaking.