HEG Subsidiary Replus Teams Up With Indus Towers For 1.5 GWh BESS Telecom Solutions

Market snapshot: HEG Advanced Materials Limited's clean-tech subsidiary, Replus Engitech Private Limited, has signed an MoU with Indus Towers Limited to collaborate on dedicated battery energy storage system solutions. The partnership targets deploying a robust production capacity of 1.5 GWh over the next two years to support the evolving backup needs of the telecom sector. This strategic move aims to accelerate green infrastructure growth by replacing conventional diesel generators with high-efficiency energy storage ecosystems.

Data Snapshot

• The MoU intends to dedicate 1.5 GWh of BESS production capacity over a two-year timeframe for telecom applications.
• This partnership follows a firm domestic purchase order worth ₹217.56 crore previously awarded to Replus by Indus Towers.
• Replus operates a 1 GWh automated manufacturing facility in Pune, designed to be scalable up to 6 GWh to support future expansions.

What's Changed

• Following the completion of its composite scheme of demerger effective September 1, 2026, the company transitioned its traditional graphite electrodes business into a separate entity.
• The newly-positioned listed entity, HEG Advanced Materials, has shifted focus to energy storage and green power, with this 1.5 GWh MoU serving as its second major clean-tech commercial milestone within a month.

Key Takeaways

• Secures massive scale visibility for Replus by mapping out a dedicated 1.5 GWh capacity commitment over the next two years.
• Deepens the ongoing strategic integration with Indus Towers, building on the initial ₹217.56 crore domestic supply order.
• Accelerates technical diversification as Replus actively explores alternative chemistries like sodium-ion alongside traditional lithium-ion configurations.

SAHI Perspective

The demerger of the highly profitable but cyclical graphite business has successfully allowed the restructured HEG Advanced Materials to function as a pure-play growth platform for green energy transition. By securing a high-value partnership with Indus Towers—India's telecom infrastructure titan actively swapping diesel backups for lithium-ion configurations—Replus establishes a credible operational track record. This 1.5 GWh MoU acts as a strong pilot validation, allowing HEG to build localized scale and pursue broader utility-level grid contracts.

Market Implications

The telecom storage transition is a multi-gigawatt opportunity in India. Collaborating directly with the largest tower provider offers Replus immediate market leadership. While the MoU is a declaration of intent, it strongly signals that HEG's pivot into battery energy systems is gaining fast commercial traction, positioning it favorably against other domestic battery assembly players.

Trading Signals

Market Bias: Bullish

This MoU provides strong medium-term execution visibility, leveraging Replus's scalable 1 GWh Pune plant. Coming shortly after a ₹217.56 crore order, it reinforces HEG Advanced Materials' transition momentum.

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

Trigger Factors:

• Signing of definitive commercial agreements under the 1.5 GWh MoU framework
• Successful execution and delivery of the ongoing ₹217.56 crore battery bank order by March 31, 2027
• Ramp-up progress of Pune's assembly line from 1 GWh towards its 6 GWh target capacity

Time Horizon: Medium-term (3-12 months)

Industry Context

The Indian telecom sector is under significant regulatory pressure to curb carbon emissions by transitioning from diesel-driven generator backups to battery energy storage. As clean-tech policy mandates tighten, massive domestic tower networks are generating a sustained, long-term demand pipeline for lithium-ion and advanced sodium-ion systems, creating a major addressable market for domestic BESS manufacturers.

Key Risks to Watch

• Execution and timely scale-up risk as Replus plans to transition its assembly footprint to meet the massive 1.5 GWh commitment.
• Supply chain and raw material price volatility for lithium-ion cells and component sourcing which could impact operating margins.
• Regulatory and technological shifts if competing battery chemistries gain commercial preference before Replus stabilizes its sodium-ion footprint.

Recent Developments

On September 18, 2026, Replus Engitech received a domestic purchase order valued at ₹217.56 crore (inclusive of GST) from Indus Towers for supplying Lithium-Ion Battery Banks. The entire order is scheduled to be completed on or before March 31, 2027. This order came immediately after the demerger scheme became effective on September 1, 2026.

Closing Insight

By moving swiftly from a corporate restructuring to securing large-scale clean energy storage commitments, HEG Advanced Materials is successfully executing its pivot. This collaboration serves as an impressive proof of capability in a high-growth sector.

High Performance Trading with SAHI.