Home / Business and Economy / HEG Navigates Supply Chain Snags, Eyes Price Hikes
HEG Navigates Supply Chain Snags, Eyes Price Hikes
2 May
Summary
- HEG maintains over 90% capacity utilization despite regional order delays.
- Company expects to achieve FY27 EBITDA guidance of ₹600-650 crore.
- Demerger approval anticipated by July, with listing by September.
HEG Ltd. has maintained strong performance with over 90% capacity utilization for the fiscal year, including 95% in Q4 FY26. Despite order deferrals from West Asia due to Strait of Hormuz disruptions, the company redirected supplies to Europe, the US, and Southeast Asia, reporting no adverse impact on its results.
The graphite electrode maker anticipates global price hikes, potentially between $200-$300 per tonne, driven by increasing energy and freight costs. Operating margins remained steady at approximately 20% in FY26, consistent with FY25, even with a 20% volume growth.
HEG is on track to achieve its FY27 graphite electrode EBITDA guidance of ₹600-650 crore. The company is progressing with its demerger plans, expecting NCLT approval by July and listing of HEG Graphite and HEG Green Tech by September.
Overall, HEG Ltd. demonstrates resilience with stable pricing, strong capacity utilization, and strategic redirection of exports, positioning it well for future financial targets and corporate restructuring.
