HEG Q1 PAT ₹122 Cr, +17% YoY; graphite segment profit doubles, rebounds from Q4 loss
PAT +16.7% YoY · revenue +10.35% · margins expanding
₹680.79 Cr
+10.35% YoY
₹122.34 Cr
+16.7% YoY
16.89%
+1.6pp YoY
₹6.34
HEG's Q1 FY27 consolidated revenue of ₹680.79 Cr rose 10.4% YoY (₹616.93 Cr) and 12.9% QoQ, with PAT of ₹122.34 Cr up 16.7% YoY (₹104.83 Cr) and a clean turnaround from Q4 FY26's ₹113.77 Cr loss. The reported bottom line badly understates the operating recovery: the graphite (electrode) segment result more than doubled to ₹149.64 Cr from ₹67.65 Cr a year ago and just ₹15.39 Cr last quarter, pointing to a sharp improvement in electrode realisations and utilisation. Standalone tells the same story more cleanly — PAT ₹109.50 Cr, up 52.5% YoY, with no associate or discontinued-ops noise.
Q1 FY-2027 vs prior quarters
The quarter-to-quarter volatility is almost entirely a mark-to-market artefact on HEG's Graftech International equity holdings, routed through other income/expenses. Q4 FY26's loss was driven by a ₹194.09 Cr Graftech MTM hit; this quarter carried a much smaller ₹9.67 Cr MTM loss, while the year-ago quarter had a ₹37.13 Cr MTM gain. Adjusting both sides for these one-offs, underlying PAT grew roughly 95% YoY (about ₹68 Cr to ₹132 Cr) — the operating business is far stronger than the headline +17% implies. The consolidated print also got a lift from associate Bhilwara Energy, whose profit share nearly doubled to ₹30.50 Cr from ₹16.34 Cr.
The stock went into the print at ₹598.85, up 11.4% over the past month of trading.
What the summary numbers don't show
Graphite segment result ₹149.64 Cr, +121% YoY (₹67.65 Cr) — the real driver; adjusted PAT growth ~+95% YoY once Graftech MTM swings are stripped out.
Standalone PAT ₹109.50 Cr, +52.5% YoY (₹71.80 Cr) — revenue ₹680.91 Cr, +11.1% YoY; standalone EPS ₹5.67 vs ₹3.72.
Management expects stable near-term performance with continued high capacity utilization (+90%) and EBITDA margins around 20% for the next two quarters, despite rising cost pressures. The company is actively pursuing price increases for unbooked volumes to protect and improve margins. Strategically, the expansion to 11
— This quarter: met
EBITDA margin of ~22% sits at or slightly above the ~20% management guided on the Q4 concall, and the graphite segment's ~₹600 Cr annualised run-rate tracks the stated FY27 graphite EBITDA guidance of ₹600-650 Cr — the confident, high-utilisation tone from the last call is confirmed by this print. No published Q1 consensus estimate was available, though the street broadly expected a robust quarter. Alongside results, the board approved renaming to 'HEG Advanced Materials Limited' and the NCLT reserved its order (2 July 2026) on the composite scheme that demerges the graphite business into HEG Graphite and amalgamates Bhilwara Energy — the structural separation that has been the stock's main catalyst. The ₹1,200 Cr expansion to 115,000 tons (targeted early 2028) remains the long-term lever tied to the global shift to EAF steelmaking. Management's press release was not available for this filing.
W1
Graftech International fair-value moves: a −₹9.67 Cr MTM this quarter can swing either way next quarter and keep distorting reported other income.
W2
NCLT final order on the composite demerger scheme (reserved 2 Jul 2026) — completion triggers the graphite separation and the name change.
W3
Whether graphite EBITDA holds the ~₹600 Cr annualised run-rate toward the FY27 ₹600-650 Cr guidance amid management-flagged cost pressures.
Clean digital PDF, both statements present. Consolidated PBT 165.08 includes 30.50 Cr associate (Bhilwara Energy) share; PBT before associates 134.58. No exceptional-items line, but large Graftech International FVTPL mark-to-market swings drive volatility: -9.67 Cr this Q (other expenses) vs +37.13 Cr gain YoY (other income) and -194.09 Cr in Q4 FY26 (which caused Q4's loss). No discontinued-ops contribution this quarter (Infotech division sold to Texnere in FY26).
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