Q2 2026 HEG Ltd Earnings Call Transcript
Key Points
- HEG Ltd (BOM:509631) reported a significant increase in revenue from INR568 crores in the previous year to INR697 crores for the quarter ended September 30, 2025.
- The company achieved an EBITDA of INR226 crores, up from INR140 crores in the corresponding quarter of the previous year.
- HEG Ltd (BOM:509631) operates at one of the highest utilization levels in the industry, exceeding 90% in the last two quarters.
- India's steel production, a key market for HEG Ltd (BOM:509631), increased by 10.5% year-on-year, supporting demand for graphite electrodes.
- The company remains long-term debt-free with a substantial treasury size of INR1,167 crores, providing financial stability and flexibility for future investments.
- Global crude steel production declined by 1.5% year-on-year, indicating a slowdown in demand, which affects the graphite electrode market.
- China's crude steel output decreased by 2.6% year-on-year, with a sharp sequential decline of 9.9%, impacting global steel prices and demand.
- The imposition of a 50% reciprocal duty in the US poses a potential headwind to HEG Ltd (BOM:509631)'s competitiveness in that region.
- The graphite electrode market faces challenging conditions with muted customer demand and aggressive export pricing by Chinese suppliers, pressuring margins.
- The demerger process is taking longer than anticipated, with stock exchange approvals still pending, potentially delaying strategic restructuring plans.
Good day ladies and gentlemen. Welcome to HEG Limited's Q2 FY26 results conference call organized by SKP Securities Limited.
(Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Navin Agarwal, Head Institutional Equities at SKP Securities Limited. Thank you and over to you, sir.
Good afternoon, ladies and gentlemen. I'm pleased to welcome you on behalf of HEG Limited and SKP Securities to this financial results conference call with the leadership team at HEG Limited. We have with us Mr. Manish Gulati, Executive Director; along with his colleagues, Mr. Om Prakash Ajmera, Group CFO; Mr. Ravi Kant Tripathi, CFO; Mr. Puneet Anand, CSO; and Mr. Ankur Khaitan, MD and CEO of TACC Limited, a wholly owned subsidiary of HEG Limited. We'll have the opening remarks from Mr. Gulati, followed by a Q&A session.
Thank you, and over to you, Manish-ji.
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