HEG Q2 Results | Net profit zooms 73% to ₹143 crore on 23% revenue growth

Graphite electrode maker Hindustan Electro Graphites (HEG) Ltd on Monday (November 10) reported a 72.7% year-on-year increase in net profit at ₹143 crore for the quarter ended September 2025, compared with ₹82.8 crore in the same period last year.

Revenue rose 23.2% to ₹699.2 crore from ₹567.6 crore a year earlier. EBITDA increased 23% to ₹118.4 crore from ₹96.3 crore in the year-ago quarter. Operating margin remained flat at 17% compared with the previous year.

HEG Ltd's board of directors approved the company’s proposed subscription to unlisted and unsecured optionally convertible debentures (OCDs) of TACC Limited, a wholly-owned subsidiary. The debenture subscription will be for an aggregate amount of up to ₹633 crore, which may be subscribed in one or more tranches under a debenture subscription agreement.

Also Read: HEG shares surge 12% after strong Q1 results — Key factors aiding the upmove

In addition, the board noted the proposed sale of a 26% stake in Texnere India Private Limited held by Bhilwara Infotechnology Limited, another wholly-owned subsidiary of HEG. The decision follows a valuation report by a SEBI-registered Category-I merchant banker and continues the previously intimated business transfer agreements and shareholding arrangements.

The board approved the appointment of Puneet Anand as President and Group Chief Strategy Officer of the company, effective December 1, 2025. Anand will also serve as a Key Managerial Personnel (KMP) and will be authorised, in addition to the existing KMPs.

The board took note of show-cause notices received from the Office of the Deputy Commissioner (SGST), Mandideep Circle, Bhopal Division-2, related to the IGST refunds for FY 2019-20 and FY 2020-21, with proposed penalties of ₹282.34 crore for each period.

Also Read: HEG, Graphite India shares surge up to 18% courtesy of these two factors

HEG stated that the impact will be limited to the final tax liability, including any applicable interest and penalties. The company expressed confidence that the IGST refunds are in order and expects the notices to be dropped by the GST department, similar to previous cases for FY 2017-18 and FY 2018-19.

Shares of HEG Ltd ended at ₹519.65, down by ₹29.60, or 5.39%, on the BSE.