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Replus Engitech Private Limited, a subsidiary of HEG Advanced Materials Limited, has signed a MoU

ICICIdirect Research 01 Oct 2026 DISCLAIMER

News: Replus Engitech Private Limited, a subsidiary of HEG Advanced Materials Limited, has signed a MoU with Indus Towers Limited to explore collaboration on Battery Energy Storage System (BESS) solutions for India's telecom infrastructure. Under the framework, Replus intends to allocate 1.5 GWh of dedicated BESS production capacity over a two-year period to meet telecom power requirements while expanding its portfolio into higher-capacity battery systems and emerging technologies like sodium-ion batteries

View:  The order worth is estimated at a total of ~₹1500 crore for 2 years (industrial application of BESS cost at ₹1 crore/MWh). Thus, per year realisation comes to ~₹750 crores. The company has previously specified 12-14% margin in the BESS category which comes out to an EBITDA of ₹90-₹105 crores. This strategic partnership aligns with HEG's broader drive to scale domestic energy storage manufacturing, enhance power reliability for passive telecom assets and advance clean energy integration along with its production target from 1 GWh to 6 GWh for FY27. Hence, we maintain a positive view while execution and further details of the MoU remain key monitorables.

Impact: Positive

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