HEG Advanced Materials Q2 Consolidated Net Profit Rises To ₹300 Crore On ₹430 Crore Revenue

Market snapshot: HEG Advanced Materials Limited reported its consolidated financial results for the second quarter of FY27, delivering ₹429.94 crore in consolidated revenue from operations compared to ₹175.94 crore in the prior year period. Total income for the quarter surged to ₹546.59 crore, reflecting accelerated operational integration in its advanced battery materials and power platforms.

Data Snapshot

• Consolidated revenue from operations for Q2 FY27 reached ₹429.94 crore, compared to ₹175.94 crore in Q2 FY26.
• Consolidated EBITDA for the second quarter ended September 30, 2026 stood at ₹312.78 crore.
• Consolidated total income reached ₹546.59 crore in Q2 FY27, up from ₹226.31 crore in Q2 FY26.

What's Changed

• Consolidated revenue from operations expanded ≈144% YoY to ₹429.94 crore (derived: ₹429.94 crore vs ₹175.94 crore).
• Total income grew ≈142% YoY to ₹546.59 crore (derived: ₹546.59 crore vs ₹226.31 crore).

Key Takeaways

• Significant top-line acceleration with consolidated quarterly revenue more than doubling year-on-year.
• Robust operational margin profile demonstrated by Q2 EBITDA reaching ₹312.78 crore.
• Strategic capital expenditure approvals in place to scale synthetic anode capacity and backward integration.

SAHI Perspective

The Q2 FY27 performance highlights a strong execution trajectory for HEG Advanced Materials post-demerger. The combination of strong top-line revenue growth and stable operational cash flows provides substantial headroom to fund ongoing capex commitments across battery materials and energy storage systems.

Market Implications

The strong quarterly earnings combined with aggressive expansion plans position the company to capture growing domestic demand for battery materials. High cash flow generation from hydro power assets reduces immediate dependence on external borrowing.

Trading Signals

Market Bias: Bullish

Revenue surge to ₹429.94 crore and solid EBITDA of ₹312.78 crore support a strong directional fundamental bias.

Overweight: Advanced Battery Materials, Clean Energy & Storage Solutions

Trigger Factors:

• Execution progress on the ₹1,606 crore anode manufacturing expansion
• Commissioning of the 200 MWh BESS project in Gujarat scheduled for Q3 FY27

Time Horizon: Near-term (0-3 months)

Industry Context

India's energy transition is driving rapid demand growth for localized battery material supply chains and grid-scale storage solutions. Vertically integrated platforms with established power assets are strongly positioned to capitalize on supply commitments.

Key Risks to Watch

• Timelines and execution risks for large-scale anode manufacturing plant construction
• Raw material price volatility in raw petroleum coke and needle coke supplies
• Grid integration and off-take tariff adjustments for renewable power assets

Recent Developments

The Board of Directors approved expanding anode plant capacity from 20,000 MT to 44,000 MT with a project capex of ₹1,606 crore. Additionally, the Board approved a ₹475 crore crucible project for backward integration and noted that its 200 MWh BESS project in Gujarat has achieved 64% execution progress.

Closing Insight

With accelerating top-line growth and clear multi-year capacity expansion targets, HEG Advanced Materials demonstrates high strategic momentum in the energy transition space.

High Performance Trading with SAHI.