HEG Q1 Net Profit Soars 355%; Revenue Up 8% YoY

31 Jul 2025 , 03:57 PM

HEG Ltd. delivered a robust set of numbers for the June quarter. The company’s revenue rose 8% year-on-year to ₹616.93 crore. This is compared to ₹571.5 crore in the same period last year. This growth is supported by steady demand and operational stability. A sharper improvement was seen in operating profit. EBITDA jumped 172% to ₹105 crore during the quarter. This is up from ₹39 crore a year ago.

The company’s margin profile strengthened visibly. EBITDA margin rose to 17.1%, compared to just 6.8% in Q1FY25. On a like-for-like basis, excluding last year’s mark-to-market (MTM) losses, the margin expanded from 11.6% to 17.1%.

Net profit came in at ₹104.8 crore, a dramatic 355% increase from ₹23.04 crore in the corresponding period of the previous year, largely driven by improved core performance and investment gains.

HEG also kept a tight lid on costs. Other expenses were down 14% year-on-year at ₹128.4 crore, versus ₹148.77 crore a year ago. A key factor in the improved financials was a swing in MTM adjustments linked to its investment in US-based GrafTech International Ltd. The company had recorded a ₹27.7 crore MTM loss last year. This time, it booked a gain, boosting both other income and profit margins.

Other income surged more than threefold to ₹66.9 crore, compared to ₹20.44 crore in Q1FY25, largely due to these MTM gains. Finance costs were marginally lower at ₹8.18 crore, down from ₹8.47 crore in the same quarter last year.

Looking ahead, HEG announced a capacity expansion plan to scale up operations. It aims to add 15,000 tonnes to its existing 100,000-tonne graphite electrode capacity.

The expansion, pegged at a capital cost of ₹650 crore, will be funded through internal accruals, with the option of raising debt if necessary. Current capacity utilisation remains healthy in the range of 85% to 90%.

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