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HEG reported a healthy performance in Q1FY27

ICICIdirect Research 23 Jul 2026 DISCLAIMER

News: HEG reported a healthy performance in Q1FY27. Revenue for the quarter came in at ₹681 crore (up 13% QoQ). EBITDA for Q1FY27 came in at ~₹161 crore with corresponding EBITDA margins at 23.7% (vs 8.4% in Q4FY26- excluding one-time loss of ₹193 crore from MTM investment in Graftech). PAT for the quarter came in at ₹110 crore (vs. ₹ 72 crore in Q1FY26 and loss of ₹ 163 crore in Q4FY26). 

View: The company reported a sequential increase in topline, primarily due to ~12% QoQ improvement in graphite electrode realization (with an assumption of 92% capacity utilisation) during the quarter. Moreover, gross margins witnessed a sequential improvement by 560 bps to 63% in Q1FY27, driven by lower raw material costs. Along with this, lower other operating expenses led to sharp improvement in EBITDA margins to 23.7% in Q1FY27. Nonetheless, we remain constructive on HEG over the long term, supported by the global transition to electric arc furnace-based steelmaking and its entry into the graphite anode market with end application in Electric Vehicles.

Impact: Positive

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