HEG Subsidiary Replus Secures ₹218 Cr Indus Towers Deal

HEG Advanced Materials Ltd’s graphite electrode arm, Replus Engitech, has locked in a ₹217.56 crore supply contract from Indus Towers Ltd. The deal, inclusive of GST, covers lithium-ion battery banks with a delivery window extending to March 31, 2027. The move signals a clear pivot for HEG’s subsidiary beyond its core graphite electrode business into high-value energy storage infrastructure for telecom networks.

The news landed on a strong earnings backdrop. For the quarter ended June 30, 2026, HEG reported a 16.7% year-on-year surge in consolidated net profit to ₹122.3 crore, up from ₹104.8 crore in the same period last year. Revenue from operations climbed 11.1% to ₹680.8 crore. The real story, though, is in the margins. EBITDA jumped 42.5% to ₹150.6 crore, expanding the margin to 22.1% from a lean 17.3% a year ago. That’s a massive operational efficiency gain.

The core graphite segment did the heavy lifting. It generated ₹677.7 crore in revenue, up from ₹609 crore in Q1 FY26. The power segment lagged, contributing just ₹3.1 crore in revenue, down from ₹3.8 crore previously. Segment profit from the power division slipped to ₹1.1 crore. But the overall segment results from continuing operations nearly doubled to ₹149.8 crore, a stark contrast to the ₹75.3 crore recorded a year earlier.

On the balance sheet, HEG remains relatively lean. Total assets stand at ₹6,333.97 crore against total liabilities of ₹1,453.78 crore. The company confirmed that neither its promoter group nor any group companies hold an interest in Indus Towers, ensuring the deal is at arm's length. The pricing and terms follow standard purchase order conditions, with no immediate capex shock expected for the parent.

Traders are reacting favorably. HEG Advanced Materials shares closed at ₹238.55 on the BSE, up ₹11.35 or 5.00%. The stock has been volatile recently, having hit a discovered price of ₹260 in recent sessions. With the Indus Towers order in the bag and margins expanding, the focus now shifts to execution. Can Replus scale its battery bank production to meet the March 2027 deadline without eroding the Q1 margin gains? That’s the question HEG management will need to answer in the Q2 update.