Archive · 24 Jul 2026
HEG forecasts stronger second half with price hikes
HEG, a company that makes graphite electrodes, thinks the second half of the year will be better because they raised prices.
This will help them make more money.
They are already using most of their factory space and are selling to places like the US and Turkey.
They are also making their factory bigger to meet future needs.
The company made ₹681 crore in the first three months of the year and kept their prices stable even when some markets had problems.
They expect prices to keep going up, which will help them make even more money later.
HEG expects the second half of the financial year to be stronger due to price hikes and improved margins.
Graphite electrode prices rose 7-8% sequentially in the June quarter, with further increases expected.
HEG is operating at 91% capacity utilisation, redirecting supplies to markets like the US to maintain stable sales.
The company is expanding capacity from 100,000 tonnes to 115,000 tonnes to meet future demand.
For Q1FY27, HEG reported revenue of ₹681 crore, profit of ₹122 crore, and a margin of 22.1%.
- Who
- HEG, a Noida-based graphite electrode manufacturer
- What
- HEG forecasts a stronger second half of the financial year due to price hikes and improved margins
- When
- The second half of the financial year, with price increases expected to take effect over the next three months
- Where
- Global markets, with a focus on the US and Middle East (Turkey)
- Why
- Due to recent price hikes, improved margins, and strong capacity utilisation
Optimistic Outlook
Potential Challenges
Price Hikes and Margins
Optimistic Outlook
HEG expects margins to improve as price hikes flow through to customer contracts, with a widening spread between graphite electrode prices and needle coke costs.
Potential Challenges
There is a three-month lag between price increases and their reflection in contracts, which could delay immediate benefits.
Market Disruptions
Optimistic Outlook
HEG has redirected supplies to markets like the US, maintaining stable sales volumes despite disruptions in West Asia.
Potential Challenges
Disruptions in key markets like the Middle East could pose challenges if redirection efforts are not sustained.
Capacity Expansion
Optimistic Outlook
HEG is expanding capacity from 100,000 tonnes to 115,000 tonnes, supported by strong utilisation levels and global presence.
Potential Challenges
Increased capacity could lead to higher operational costs and the need for sustained demand to justify the expansion.
- Company
- HEG
- Sector
- Graphite Electrode Manufacturing
- Current Capacity
- 100,000 tonnes
- Expanded Capacity
- 115,000 tonnes
- Capacity Utilisation
- 91%
- Q1FY27 Revenue
- ₹681 crore
- Q1FY27 Profit
- ₹122 crore
- Q1FY27 Margin
- 22.1%
- Key Markets
- US, Middle East (Turkey)
- Expected Price Increase Lag
- 3 months