HEG Advanced Materials Stock Surges 10% Following Q2 Earnings and ₹1,606-Crore Anode Expansion

Shares of HEG Advanced Materials saw an upward movement on Wednesday, surging nearly 10 percent on the National Stock Exchange (NSE). The stock touched an intraday high of ₹270, pushing the company's market capitalisation past the ₹8,500-crore mark. The market reaction followed the release of the company's financial results for the September quarter alongside a major capital expenditure announcement.

For Q2 FY27, HEG Advanced Materials reported consolidated revenue from continuing operations of ₹430 crore, while total income reached ₹547 crore. The company posted an EBITDA of ₹313 crore, with profit after tax standing at ₹209 crore.

Alongside the financial update, the company board approved an expansion of its anode manufacturing capacity. The firm will invest ₹1,606 crore to scale capacity from 20,000 tonnes to 44,000 tonnes. The additional 24,000-tonne facility is scheduled for commissioning by March 2029.

Progress is already underway on the initial phase of the project. Construction of the first 20,000-tonne facility has achieved 61 percent overall progress, with process building completion at 72.25 percent. Commercial operations for this initial phase are expected to begin in June 2027. The company stated that the expansion will leverage existing infrastructure, power connectivity, and land assets at its Dewas facility.

Beyond standard manufacturing, the group's anode and graphene business, TACC, is developing next-generation silicon-doped and graphene-based anode materials. These materials are designed to improve battery energy density and enable faster charging capabilities. Simultaneously, the group's battery energy storage arm, REPLUS Engitech, is pursuing a 5 GWh expansion initiative to bring its total capacity to 6 GWh.

Riju Jhunjhunwala, Chairman, MD and CEO, noted that the organisation remains focused on building a technology-led advanced materials platform through targeted investments in R&D, proprietary technologies, and scalable business segments.

Financially, the group is supported by its green power business, which includes two hydro projects and a wind project operating on a debt-free basis. The hydro assets contribute annual cash flows exceeding ₹300 crore, providing ongoing financial stability to the broader group operations.

"The market's positive response to HEG Advanced Materials highlights investor confidence in well-capitalized manufacturing plays transitioning into advanced materials and energy storage. Committing ₹1,606 crore to scale anode capacity while maintaining stable cash flows from debt-free green power assets demonstrates a balanced approach to heavy capital expenditure. As the electric vehicle and energy storage sectors evolve, integrating R&D in silicon-doped and graphene-based materials will be critical for long-term competitiveness." — Dr. Shishir Gupta, Founder & CEO, StartupLanes