HEG profit reaches ₹155.51 crore as graphite revenue rises

HEG Limited (Formerly known as HEG Graphite Limited) reported unaudited profit of ₹155.51 crore for the quarter ended September 30, 2026, compared with ₹120.64 crore a year earlier. HEG's graphite revenue rose 24% year on year to ₹740.40 crore, while investment gains and fair-value movements also contributed to its ₹192.47 crore profit before tax.

How did HEG perform in the September 2026 quarter?

HEG earned ₹155.51 crore in the September 2026 quarter, against ₹120.64 crore in the September 2025 quarter and ₹95.15 crore in the June 2026 quarter. The year-on-year increase was ₹34.87 crore, while profit rose ₹60.36 crore sequentially, based on comparative numbers restated under the demerger scheme.

Revenue from operations was ₹740.40 crore, compared with ₹595.85 crore a year earlier and ₹580.91 crore in the preceding quarter. Total income reached ₹802.91 crore, versus ₹792.08 crore in September 2025, as other income was ₹52.51 crore. Profit before tax increased to ₹192.47 crore from ₹151.23 crore, while total tax expense was ₹36.96 crore against ₹30.59 crore.

Earnings per share were ₹8.11 for the quarter, up from ₹6.25 in the year-earlier period and ₹4.93 in the June quarter. Total comprehensive income was ₹154.77 crore, compared with ₹119.61 crore a year earlier, after items related to the remeasurement of the employee defined-benefit plan.

What drove HEG's revenue growth?

HEG's graphite business generated ₹740.40 crore of revenue in the September 2026 quarter, compared with ₹595.85 crore in the corresponding quarter a year earlier. The ₹144.55 crore increase represented 24% growth and coincided with no power-segment revenue being reported in the latest quarter.

The graphite segment result was ₹135.71 crore, up from ₹74.37 crore in the September 2025 quarter. This was a ₹61.34 crore increase before interest income, gains or losses on investments and finance costs. In the June 2026 quarter, graphite revenue was ₹677.77 crore and the segment result was ₹144.03 crore.

The Tawa Nagar hydro power plant is seasonal, according to HEG. It reported ₹10.64 crore of revenue and a ₹5.94 crore segment result in the September 2025 quarter, compared with no revenue or result in the latest quarter. HEG said the plant operates intermittently in the first quarter based on irrigation requirements, starts in the second quarter depending on monsoon conditions, continues in the third quarter and tapers in the last quarter.

How much did investment gains contribute to HEG's profit?

HEG reported ₹67.45 crore under gain or loss on sale of investments, including fair-value movements, in the September 2026 quarter. This was part of the reconciliation to ₹192.47 crore of profit before tax, alongside the ₹133.98 crore combined segment result and ₹1.84 crore of interest income, after ₹10.80 crore of finance costs.

Other income was ₹52.51 crore in the latest quarter, below ₹95.23 crore a year earlier. The notes state that fair-value gains on investments measured at fair value through profit or loss, or FVTPL, recognised in other income were ₹55.03 crore in September 2026, compared with ₹78.85 crore in September 2025. FVTPL records changes in an investment's value in the income statement.

HEG specifically disclosed that the latest-quarter net gain included ₹60.61 crore from an increase in the fair value of its equity investment in Graftech International Limited, USA. The corresponding disclosed component for the September 2025 quarter was ₹78.85 crore. The figures distinguish the graphite segment result from profit effects arising from investment valuations.

What changed in HEG's half-year financial position and cash flow?

HEG reported half-year profit of ₹251.67 crore for the six months ended September 30, 2026, compared with ₹182.59 crore in the comparable period. Revenue from operations rose to ₹1,421.31 crore from ₹1,309.63 crore, while graphite revenue increased to ₹1,418.17 crore from ₹1,295.21 crore. Power revenue was ₹3.14 crore, compared with ₹14.42 crore a year earlier.

Total assets stood at ₹4,698.79 crore on September 30, 2026, up from ₹4,534.86 crore at March 31, 2026. Inventories increased to ₹1,183.77 crore from ₹1,133.74 crore, trade receivables rose to ₹537.51 crore from ₹499.46 crore, and cash and cash equivalents increased to ₹66.67 crore from ₹22.03 crore.

Net cash from operating activities was ₹368.44 crore in the six months ended September 30, 2026. HEG spent ₹114.59 crore on property, plant and equipment, intangible assets and capital work in progress, while investment purchases of ₹103.71 crore broadly matched ₹103.35 crore of investment-sale proceeds. Current borrowings declined to ₹708.97 crore at September 30 from ₹793.28 crore at March 31.

What does HEG's demerger and pending listing mean?

HEG became the resulting company for the graphite business, overseas investments and assets and liabilities relating to the Tawa power plant under a scheme approved by the National Company Law Tribunal, Indore Bench, on August 13, 2026. The board set September 1, 2026 as the scheme's effective date, and HEG allotted shares to eligible shareholders on September 7, 2026.

HEG restated comparative financial information as if the demerger had occurred from the start of the preceding year, following the scheme and Appendix C to Indian Accounting Standard 103, Business Combinations. Therefore, the September 2025 quarter, June 2026 quarter, September 2025 half year and year ended March 31, 2026 include the company and the demerged undertaking for their respective periods.

HEG filed an information memorandum with the Securities and Exchange Board of India, or SEBI, for listing its shares on BSE Limited and the National Stock Exchange of India Limited. As of October 30, 2026, when the board approved the results, SEBI approval was awaited and the shares had not been listed. The statutory auditor issued an unmodified conclusion on the unaudited results, and HEG reported no loan or debt-security default during the quarter.

Conclusion

HEG's September 2026 quarter combined higher graphite revenue and a higher graphite segment result with a material contribution from investment gains and fair-value movements. The ₹155.51 crore profit was ₹34.87 crore above the restated year-earlier figure, while graphite revenue increased by ₹144.55 crore.

The next disclosed milestone is SEBI's approval for HEG's proposed listing on BSE Limited and the National Stock Exchange of India Limited. Readers can also monitor the seasonal operation of the Tawa Nagar hydro power plant and the fair-value movement in HEG's Graftech International Limited investment.