HEG Advanced Materials Ltd
HEG Advanced Materials Q2 FY27 Results: Anode Project Expansion to 44,000 MT
RESULTS
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 03 Nov 2026, 11:13 PM IST · BSE ID: f4cc42b7-0313-46be-924c-7648a18f6eac
View Original BSE Filing (PDF)
💡
In Simple Terms
The company reported its latest financial results and approved major plans to expand its anode, crucible, and graphene production facilities.
🤖 AI Summary
- HEG Advanced Materials reported Profit After Tax from continuing operations of ₹ 36.47 Crores for Q2 FY27.
- TACC Limited's Phase-1 anode project revised cost is ~ ₹ 2,350 Crores, targeting June 2027 COD.
- Board approved expansion of anode capacity from 20,000 MT to 44,000 MT at ~ ₹ 1606 Crores, targeting March 2029 COD.
- New plants approved: Crucible (80,000 units P.A.) at ~ ₹ 475 Crores by Sept 2028, and Graphene (500 MT) at ~ ₹ 500 Crores by Sept 2028.
- Formulation of HEG Advanced Materials Limited Employee Stock Option Plan 2026 for eligible employees was approved.
🔢 Key Numbers - exact figures from BSE filing, not rounded
Profit/(loss) after tax from continuing operations (Q2 FY27)
₹ 36.47 Crores
Not comparable — limited prior period data.
Revenue from operations from continuing operations (Q2 FY27)
₹ 7.59 Crores
Not comparable — limited prior period data.
Estimated revised cost for Anode project Phase-1
~ ₹ 2,350 Crores
Estimated cost for Anode capacity expansion to 44,000 MT
~ ₹ 1606 Crores
Estimated cost for new Crucible plant (80,000 units P.A.)
~ ₹ 475 Crores
Estimated cost for new Graphene plant (500 MT)
~ ₹ 500 Crores
Loan to Replus Engitech Private Limited
Rs. 50 crore
🏢 How This Affects the Company
The approval of significant capacity expansions for anode, crucible, and graphene manufacturing indicates a strategic move to diversify and grow the company's advanced materials portfolio, potentially enhancing future revenue streams.
The substantial capital commitments of ~ ₹ 2,350 Crores for anode Phase-1, ~ ₹ 1606 Crores for anode expansion, ~ ₹ 475 Crores for crucible, and ~ ₹ 500 Crores for graphene will require significant funding, which could impact the company's cash flows and debt levels.
The planned expansion of manufacturing capacities for anode, crucible, and graphene, along with the closure of LNJ Trading FZCO, will necessitate adjustments in operational scale, resource allocation, and supply chain management for the respective subsidiaries.
The large capital expenditure projects introduce execution risks related to project delays, cost overruns, and market demand for new capacities. The closure of a foreign subsidiary streamlines the corporate structure but also requires managing the transition efficiently.
👥 What This Means For Shareholders
✅
Action Required
Shareholders are required to approve the 'HEG Advanced Materials Limited Employee Stock Option Plan 2026' and the alteration of the main object clause of the Memorandum of Association.
👤
Who Is Affected
Shareholders will be affected by potential dilution from the Employee Stock Option Plan 2026 upon approval and by the long-term strategic direction indicated by the significant capital expenditure decisions for future growth.
🔍
Management Signal
Management is signaling a strong commitment to expanding into advanced materials, particularly anode, graphene, and crucible, through substantial capital investment and strategic restructuring of subsidiaries.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List - track these upcoming events
Shareholder meeting date for ESOP and MOA alteration approval.
Updates on TACC Limited's anode project Phase-1 progress towards June 2027 COD.
Financial updates on the Crucible and Graphene plant developments by September 2028.
MEDIUM RISK
High capital expenditure commitments for new projects introduce execution risks and potential for cost overruns or delays.
💡 Investor Takeaway
HEG Advanced Materials' Q2 FY27 standalone continuing operations Profit After Tax was ₹ 36.47 Crores. The company approved substantial capital outlays: ~ ₹ 2,350 Crores for Anode Phase-1, an additional ~ ₹ 1606 Crores for Anode capacity expansion to 44,000 MT, ~ ₹ 475 Crores for a Crucible plant, and ~ ₹ 500 Crores for a Graphene plant.
⚖️ Strengths & Concerns
✅ Positives
- Profit After Tax from continuing operations for Q2 FY27 was ₹ 36.47 Crores, demonstrating profitability in its core business.
- Significant capacity expansion plans for Anode (to 44,000 MT), Crucible (80,000 units P.A.), and Graphene (500 MT) indicate future growth strategy.
⚠️ Concerns
- Revenue from operations for continuing operations in Q2 FY27 was ₹ 7.59 Crores, a decline from ₹ 6.85 Crores in Q2 FY26. (Not comparable: different entities, auditor note implies restatement and demerger effect)
- Total expenses for continuing operations were ₹ 11.53 Crores in Q2 FY27, up from ₹ 22.76 Crores in Q2 FY26 (restated figure), but still a significant cost component.
📅 Company Track Record
HEG Advanced Materials Limited (formerly HEG Limited) recently underwent a Composite Scheme of Arrangement, demerging its Graphite Undertaking into HEG Limited (formerly HEG Graphite Limited) and amalgamating Bhilwara Energy Limited. The results for prior periods have been restated to reflect this. FY26 audited results approved a Rs. 3.40 dividend and secured Rs. 1,239 crore for TACC subsidiary financing.
Based on publicly available historical data. For context only.
❓ Frequently Asked Questions
What was HEG Advanced Materials' Profit After Tax from continuing operations in Q2 FY27?
HEG Advanced Materials reported a Profit After Tax from continuing operations of ₹ 36.47 Crores for the quarter ended September 30, 2026 (Q2 FY27).
What is the revised estimated cost for Phase-1 of TACC Limited's Anode project?
The estimated revised cost for Phase-1 of TACC Limited's 20,000 MT Anode project is ~ ₹ 2,350 Crores, with a target Commercial Operation Date (COD) by June 2027.
What new manufacturing capacity expansions were approved by HEG Advanced Materials?
The company approved an expansion plan for anode capacity from 20,000 MT to 44,000 MT at an estimated cost of ~ ₹ 1606 Crores, a new Crucible plant (80,000 units P.A.) at ~ ₹ 475 Crores, and a 500 MT Graphene plant at ~ ₹ 500 Crores.
What is the target COD for the new Graphene manufacturing plant?
The target Commercial Operation Date (COD) for the new Graphene manufacturing plant, with a capacity of 500 MT, is by September 2028.
Which subsidiary of HEG Advanced Materials is being closed?
LNJ Trading FZCO, a foreign wholly owned subsidiary of HEG Advanced Materials situated in Dubai, is being closed as part of a rationalization of the Group's overseas corporate structure.
Questions based on this BSE filing only. For information purposes.