HEG Limited Earnings Summary — Q1 FY2027
HEG Limited Reports Revenue Growth Amid Strategic Rebranding to HEG Advanced Materials
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 12.9% sequentially in Q1 FY2027.
- Revenue of ₹681 Cr is 11.1% higher year-on-year.
- Revenue has compounded at 10.2% annualised over the last 10 quarters.
- Net profit of ₹122 Cr is 16.7% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 111.8% annualised across the period.
- Operating margin stands at 22.1% in Q1 FY2027.
- Operating margin expanded by 487 bps year-on-year.
- Over the last two years operating margin has expanded by 1535 bps.
- PBT margin is 24.3%.
- Expense growth of 4.6% remained below revenue growth of 11.1%.
- Operating profit of ₹151 Cr is 42.5% higher year-on-year.
- Operating leverage continues to improve.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 80/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 681 | 603 | 656 | 699 | 613 | 537 | 478 | 568 | 571 | 547 |
| Expenses | Improving | 530 | 752 | 513 | 581 | 507 | 598 | 411 | 471 | 533 | 506 |
| Operating Profit | Volatile | 151 | -148 | 143 | 118 | 106 | -61 | 67 | 97 | 39 | 41 |
| Operating Margin | Volatile | 22.1% | -24.6% | 21.7% | 16.9% | 17.3% | -11.4% | 14.0% | 17.0% | 6.8% | 7.5% |
| Other Income | Volatile | 74 | 72 | 167 | 120 | 82 | 43 | 112 | 63 | 41 | 64 |
| Interest | Stable | 10 | 11 | 9 | 9 | 8 | 12 | 9 | 9 | 8 | 9 |
| Depreciation | Stable | 50 | 53 | 54 | 54 | 53 | 55 | 51 | 48 | 48 | 50 |
| Profit Before Tax | Volatile | 165 | -140 | 246 | 175 | 126 | -85 | 119 | 103 | 24 | 46 |
| Tax | Volatile | 43 | -26 | 39 | 32 | 22 | -11 | 35 | 20 | 1 | 13 |
| Net Profit | Volatile | 122 | -114 | 207 | 143 | 105 | -74 | 83 | 82 | 23 | 33 |
| Net Margin | Volatile | 18.0% | -18.9% | 31.6% | 20.5% | 17.1% | -13.7% | 17.4% | 14.5% | 4.0% | 6.0% |
Key Takeaways
- Consolidated Revenue from Operations saw double-digit growth of 11% YoY and 13% QoQ to ₹680.79 crore.
- The Board approved a proposed name change to 'HEG Advanced Materials Limited' to align with its strategy in specialized manufacturing and battery materials.
- Profitability was supported by a strong contribution from Associate companies, contributing ₹30.50 crore compared to a loss of ₹7.18 crore in the prior quarter.
- The Composite Scheme of Arrangement involving the demerger of the Graphite business is currently pending final approval/order from the NCLT Indore Bench.
- Operating performance remains healthy despite a significant mark-to-market loss of ₹21.43 crore on Graftech International Ltd investments during the quarter.
- Power segment operations remain seasonal, operating intermittently during Q1 based on irrigation and monsoon requirements.
Management Guidance
Management is pivoting toward 'Advanced Materials' to leverage core strengths in specialized manufacturing and value-added materials, shifting from the broader 'Greentech' label used previously.
Sentiment Shift
Improving
A recovery in operating margins and revenue growth, coupled with a strategic shift into advanced materials, indicates a transition from the recent cyclical trough.
Outlook
The company is awaiting NCLT approval for its restructuring scheme while rebranding to better reflect its long-term strategy in high-value materials and lithium-ion battery anodes.
From the Annual Report (Key Quotes)
“The proposed name is intended to more accurately reflect the Company's business, strategic direction and corporate identity.”
“Management has re-evaluated its long-term strategy to better align with the Company's core strengths in advanced manufacturing.”
“Pending receipt of final approvals/order from NCLT, no adjustments have been made in the unaudited financial results.”
Official Quarterly Documents
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This summary is AI-generated from HEG Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.