HEG (HEG) Q3 25/26 earnings summary

Executive summary

• Achieved resilient Q3 FY26 performance with consolidated revenue of ₹656.3 crore and profit before tax of ₹246.2 crore, reflecting strong operational efficiency, improved margins, and robust graphite segment results.

• Standalone profit after tax for Q3 FY26 reached ₹141.3 crore, with EPS at ₹7.32; consolidated net profit was ₹207 crore, with EPS at ₹10.72.

• Maintained industry-leading capacity utilization at 85% in the previous quarter and 89% over the last three quarters, leveraging the world's largest single-location graphite electrode facility (100,000 tons).

• Exports consistently account for 65–70% of total sales, spanning 30-35 countries and including top 20 global steel companies.

• Board approved unaudited financial results, key management appointments, and strategic actions including winding up a subsidiary and a major stake transfer.

Financial highlights

• Nine-month revenue ended December 2025 was INR 1,965 crore, up from INR 1,616 crore year-over-year; Q3 FY26 revenue was ₹656.3 crore.

• EBITDA for the nine months was INR 623 crore, up from INR 393 crore year-over-year; Q3 FY26 standalone EBITDA was ₹243 crore with a margin of 32%.

• Standalone profit after tax for nine months was INR 344 crore (vs. INR 163 crore YoY); consolidated profit after tax was INR 455 crore (vs. INR 189 crore YoY).

• Standalone net profit for Q3 FY26: ₹141.25 crore (up from ₹130.86 crore in Q2 FY26; up from ₹98.32 crore in Q3 FY25); consolidated net profit: ₹206.97 crore.

• Maintains a strong balance sheet, long-term debt-free, with treasury balance of INR 1,155 crore as of December 31, 2025.

Outlook and guidance

• Global transition to electric arc furnace (EAF) steelmaking is expected to drive incremental graphite electrode demand of ~200,000 tons by 2030 (excluding China).

• 20 million tons of new EAF capacity added in 2024-2025; another 60 million tons expected by 2028, and 30 million tons by 2030.

• Construction of a 15,000-ton capacity expansion is on schedule, targeted for completion by early 2028; further expansion to 115,000 tons by end of 2027 announced.

• At least 50-60% of next year's sales volumes are already contracted at similar realizations to recent quarters.

• Short-term market pressure persists due to weak global steel production, but long-term confidence is supported by the EAF shift.