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US reciprocal tariffs impact competitiveness
View Risks →HEG Limited — Q2 FY26
HEG reported a strong Q2 FY26 with revenue of ₹697 crore (+22.7% YoY) and EBITDA of ₹226 crore (+61.4% YoY), driven entirely by higher sales volumes as prices remained flat.
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HEG reported a strong Q2 FY26 with revenue of ₹697 crore (+22.7% YoY) and EBITDA of ₹226 crore (+61.4% YoY), driven entirely by higher sales volumes as prices remained flat. Consolidated PAT stood at ₹105 crore (+28% YoY). The company operated at 90%+ utilization, among the highest in the industry. Management noted muted demand due to Chinese export pricing and US reciprocal tariffs (50%), but expects stabilization as global EAF capacity additions (~20M tons over two years) drive incremental electrode demand of ~30,000 tons. The 15,000-ton expansion (₹650 crore capex) is on track for CY2028. Key risk: US tariffs may pressure competitiveness if not reduced, though US exposure is only 10-12% of sales.
HEG ने दूसरी तिमाही में अच्छा प्रदर्शन किया। कंपनी की कमाई ₹697 करोड़ रही, जो पिछले साल से 22.7% ज्यादा है। मुनाफा ₹226 करोड़ रहा, जो 61.4% बढ़ा। यह बढ़ोतरी सिर्फ ज्यादा बिक्री की वजह से हुई, कीमतें नहीं बढ़ीं। कुल मुनाफा ₹105 करोड़ रहा। कंपनी ने अपनी 90% से ज्यादा क्षमता का इस्तेमाल किया। चीन की कम कीमतों और अमेरिकी टैरिफ (50%) की वजह से मांग कम है, लेकिन उम्मीद है कि दुनिया भर में नए स्टील प्लांट लगने से इलेक्ट्रोड की मांग बढ़ेगी। कंपनी 2028 तक अपनी क्षमता 15,000 टन बढ़ाएगी, जिस पर ₹650 करोड़ खर्च होंगे। अमेरिकी टैरिफ से थोड़ा जोखिम है, लेकिन वहां बिक्री सिर्फ 10-12% है।
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Read Transcript →Quarter Snapshot
Capacity Utilization
90%+
+10pp YoY
Utilization improved from ~80% in FY25 to 90%+ in H1 FY26, reflecting higher sales volumes.
Global EAF Capacity Additions
20M tons
N/A
Expected new electric arc furnace capacity over next two years, driving ~30,000 tons of electrode demand.
US Sales Exposure
10-12%
N/A
US market accounts for 10-12% of sales; diversified across 35 countries mitigates tariff risk.
Needle Coke Inventory
Comfortable
N/A
Needle coke inventory is adequate; prices have been stable for 2-3 quarters.
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Guidance and risk preview
Capex of ₹650 crore for expansion from 100,000 to 115,000 tons, with production starting in Q1 CY2028.
50% reciprocal duties on Indian graphite electrodes could erode margins; management hopes tariffs will settle but no certainty.
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