HEG Advanced Materials Subsidiary Replus Secures ₹217.56 Crore Indus Towers Order

Market snapshot: Replus Engitech Private Limited, a step-down subsidiary of the recently renamed HEG Advanced Materials Limited, has bagged a major contract worth ₹217.56 crore from telecom infrastructure company Indus Towers Limited. Under this order, Replus Engitech will supply and install advanced Lithium-Ion Battery Banks to modernize tower backup systems. The contract has a targeted complete execution timeline by March 2027.

Data Snapshot

• Replus Engitech secured a domestic order worth ₹217.56 crore from Indus Towers for battery bank supplies
• The entire scope of the Indus Towers battery bank order is scheduled for completion by March 2027
• HEG Limited officially updated its corporate identity and website to HEG Advanced Materials Limited on September 2, 2026

What's Changed

• Effective September 1, 2026, HEG Limited split into two distinct companies: the core graphite electrodes business was demerged into HEG Graphite (to be separately listed as HEG Limited), while the existing listed entity retained battery solutions, green power, and advanced materials.
• The demerged entity formally changed its name to HEG Advanced Materials Limited, and this ₹217.56 crore order marks its first massive clean-tech commercial win post-restructuring.

Key Takeaways

• Provides significant revenue visibility for HEG's battery storage business with a firm delivery timeline up to March 2027.
• Validates Replus Engitech's capabilities to secure large-scale commercial contracts with tier-1 telecom infrastructure providers.
• Strengthens HEG Advanced Materials' positioning as a serious clean tech transition play rather than a purely cyclical industrial manufacturer.

SAHI Perspective

This ₹217.56 crore contract from Indus Towers is a pivotal proof-of-concept for HEG Advanced Materials. Slicing away the highly profitable but cyclical graphite electrode business left the demerged HEG Advanced Materials as a growth-oriented battery value chain play. Securing a tier-1 customer like Indus Towers in the telecommunications backup storage segment—which is actively transitioning from diesel to lithium-ion configurations—indicates strong product acceptability and robust technical competence. This will serve as a strong calling card for future industrial and utility-scale BESS contracts.

Market Implications

The announcement is expected to have a highly positive impact on the market sentiment surrounding HEG Advanced Materials. It establishes that the company's battery storage business can independently secure high-value contracts. This also bodes well for Indus Towers as it builds operational efficiencies and achieves decarbonization targets across its vast national tower footprint.

Trading Signals

Market Bias: Bullish

The ₹217.56 crore contract gives the newly independent HEG Advanced Materials an immediate execution runway and revenue baseline, accelerating the commercialization timeline of its energy storage segment.

Overweight: Energy Storage Solutions, Clean Energy, Telecom Infrastructure Support

Trigger Factors:

• Timely delivery of the battery banks to Indus Towers by March 2027
• Ramping up Replus Engitech's ESS storage line toward the targeted 6 GWh capacity
• Margin performance of the newly isolated Greentech and battery solutions segment

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

Industry Context

India's telecom tower segment is actively phasing out diesel generators in favor of clean battery storage systems. As demand for grid stabilization and industrial-scale energy storage scales up, downstream integration capabilities like those of Replus Engitech—coupled with parent company HEG's planned 20,000-tonne synthetic graphite anode plant scheduled for March 2027—position the group to cover a massive portion of the domestic battery value chain.

Key Risks to Watch

• Supply chain risks associated with sourcing high-quality lithium-ion cells for final assembly to meet the March 2027 deadline.
• Raw material price volatility which could impact EBITDA margins on a fixed-price contract format.
• Customer concentration risks, as telecom battery backups depend heavily on capital expenditure cycles from a small cohort of major tower infrastructure firms.

Recent Developments

HEG Limited's Composite Scheme of Arrangement took effect on September 1, 2026, under which the core graphite electrodes business was demerged into HEG Graphite Limited. The original listed entity retained the battery storage and green energy divisions, and was renamed HEG Advanced Materials Limited with a record date of September 7, 2026, for the 1:1 demerger share allocation.

Closing Insight

As the corporate demerger separates the cash-cow graphite business from the high-growth green technology division, this order is the first concrete proof that HEG Advanced Materials is well-prepared to execute on its clean energy transition roadmap.

High Performance Trading with SAHI.