HEG Q1 FY26 Results: ₹104.83 Cr Profit From Loss Turnaround

Board meeting scheduled for June 2026 quarter results

HEG Ltd informed BSE that a meeting of its Board of Directors is scheduled for 22 July 2026. The agenda includes considering and approving the company’s un-audited financial results (standalone and consolidated) for the quarter ending 30 June 2026. The intimation places focus on the upcoming earnings cycle and how the company’s performance trends from recent quarters.

Alongside this board meeting intimation, the company’s disclosures also reference that audited standalone and consolidated financial results for FY26 were approved, and the statutory auditors issued unmodified audit opinions.

What the recent quarter numbers show (Q1 FY26)

For Q1 FY26, HEG reported a strong improvement in profitability versus the immediately preceding quarter, with a swing from loss to profit on key lines. In one results summary, revenue from operations was ₹616.93 crore, up 13.78% sequentially and 7.96% year-on-year. The same summary reported profit before tax (PBT) of ₹127.46 crore, compared with a loss of ₹84.60 crore in the previous quarter.

The quarter’s net profit was reported at ₹104.83 crore, reversing a ₹73.67 crore loss in the previous quarter and rising sharply from ₹23.04 crore in the year-ago period. Diluted EPS for the quarter was cited at ₹5.43, compared to a loss per share in the prior quarter.

Income statement: revenue, expenses and profit movement

A separate financial statement snapshot for Q1 FY26 reported total income of ₹683.85 crore, compared with ₹611.21 crore in the previous quarter and ₹591.90 crore in the year-ago quarter. In the same snapshot, total expenses were ₹572.73 crore, up from ₹563.18 crore sequentially and down from ₹588.74 crore year-on-year.

Profitability improved alongside this income growth. PBT was ₹111.12 crore, up from ₹48.03 crore in the previous quarter and ₹3.16 crore in the year-ago quarter. Tax was ₹22.63 crore, and profit after tax (PAT) was ₹104.83 crore.

The reported EPS in that snapshot was ₹5.40, with a note showing an EPS of ₹8.50 in the previous quarter and ₹6.00 in the year-ago quarter.

Cost and operating lines highlighted in quarterly data

The quarterly table shared alongside the results showed the following for the quarter:

• Total operating expense: ₹564.55 crore
• Depreciation/amortisation: ₹53.05 crore
• Other operating expenses: ₹128.40 crore
• Selling, general and admin (SG&A): ₹31.07 crore

This data set also reflected total revenue of ₹616.93 crore and net income of ₹104.83 crore for the period.

Segment snapshot: graphite remains the core contributor

HEG’s graphite electrode business was cited as the key driver during the quarter. During Q1 FY26, the graphite segment contributed ₹609 crore in revenue and ₹67.65 crore in segment profit. The power segment contributed ₹3.78 crore in revenue and ₹1.56 crore in profit. The “others” segment brought ₹4.15 crore in revenue and ₹12.19 crore in profit.

The company’s total segment profit was ₹81.40 crore, based on the segment disclosure shared with the results.

Regulatory update: GST show cause notice withdrawn

HEG disclosed that a ₹282.34 crore GST show cause notice linked to alleged wrongful IGST refund claims for FY 2018-19 was dropped. The withdrawal order was issued by the Deputy Commissioner (SGST), Bhopal Division-2, dated 30 July 2025.

HEG stated there would be no financial or operational impact from the matter, removing an overhang that had been cited as a concern.

Capacity expansion decision: ₹650 crore capex plan

The company’s board approved a ₹650 crore investment to increase graphite electrode capacity by 15,000 TPA, taking total capacity to 115,000 TPA. The project timeline was disclosed as 30 months, and the company indicated it would be funded through internal accruals and debt.

Separately, the disclosures also noted that the company’s expanded capacity was 100,000 tonnes, and it operated over a percentage capacity level that was not fully specified in the provided text.

Market reaction and balance sheet datapoint cited

On 31 July 2025, HEG shares were reported to have risen 7.93% to ₹576.60 in early trade following the Q1 FY26 performance update.

The company also reported that as of 30 June 2025, its treasury stood at approximately ₹977 crore.

Key figures at a glance

Why the update matters for investors

The board meeting intimation for the June 2026 quarter is important because it sets the next disclosure milestone for both standalone and consolidated numbers. Recent reported performance showed a sharp swing in profitability, with PAT reported at ₹104.83 crore and revenue levels above ₹600 crore.

The GST matter being dropped removed a quantified potential exposure of ₹282.34 crore, and the capex plan of ₹650 crore signals a longer-term capacity push. Investors will likely track how the company balances internal accruals and debt funding while maintaining profitability through commodity-linked cycles in the graphite electrode market.

Conclusion

HEG’s next scheduled catalyst is the 22 July 2026 board meeting for approval of June-quarter 2026 unaudited results. The company’s recent disclosures highlighted a Q1 FY26 profit recovery to ₹104.83 crore, the withdrawal of a ₹282.34 crore GST notice, and a ₹650 crore capacity expansion plan with a 30-month timeline.