HEG FY26 Annual Earnings Summary

50% reciprocal duties on Indian graphite electrodes could erode margins; management hopes tariffs will settle but no certainty.

Chinese steel exports rose 78% over six years, intensifying competition and keeping electrode prices low.

The Middle East crisis has forced postponement of ~20% of sales (MENA region) and increased freight costs, impacting Q4 margins and near-term volume.

The US is considering countervailing/anti-dumping duties on Indian graphite electrode imports, with an outcome expected by September. HEG has engaged legal counsel but outcome is uncertain.

Aggressive pricing by Chinese suppliers continues to suppress global electrode prices and margins.

Global steel production remains weak; management noted Q3 demand is not improving and Q4 order book is still being built.

18% duty on Indian electrode exports to US remains a drag; management acknowledged it will hit bottom line but is manageable.

Analyst raised concern about Graphite India's losses; management downplayed closure risk but did not provide concrete assurance.

Rising crude oil prices may increase needle coke costs from H2 FY27, as current contracts cover only until September. Management has not yet negotiated next quarter's prices.

The company reported a ₹189 crore net loss due to unrealized losses on its Graphtech investment and forex. Further rupee depreciation could lead to additional mark-to-market losses.

Analyst raised concern about needle coke availability for industry capacity additions; management downplayed but acknowledged potential temporary tightness.