Archive · 2 Jun 2025
HEG Graphite Business Demerger Expected by Early 2026
HEG, a company that makes graphite, is splitting off its graphite business.
This means the graphite business will become its own separate company.
The split is waiting for government approvals and should be done by early 2026.
Even though HEG had a loss in the last financial quarter due to a change in investments, its actual business did well.
The company produced a lot of graphite last year and plans to produce even more next year.
Other companies are closing down some of their graphite production because prices have been low.
This should help the remaining companies, like HEG.
HEG's graphite business demerger is expected to be completed by the end of 2025 or early 2026.
The demerger awaits approvals from SEBI and NCLT.
HEG reported a ₹73 crore loss in Q4FY25, primarily due to an investment-related mark-to-market adjustment.
The company achieved its volume target of 80,000 tonnes in FY25 and aims for 85,000 tonnes in FY26.
Major graphite electrode producers are reducing capacity, which is expected to help the market.
- Who
- HEG
- What
- HEG's graphite business is undergoing a demerger.
- When
- Expected completion by the end of 2025 or early 2026.
- Where
- India
- Why
- To unlock shareholder value.
- Demerger Timeline
- End of 2025 or Early 2026
- Q4FY25 Loss
- ₹73 crore
- Q4FY25 EBITDA Margin (Excluding Investment Loss)
- 20–24%
- FY25 Volume
- 80,000 tonnes
- FY26 Volume Target
- 85,000 tonnes
- HEG Market Capitalization
- ₹9,577 crore