HEG Advanced Materials gets ₹218 crore order

HEG Advanced Materials Limited’s subsidiary Replus Engitech has received a ₹217.56 crore order from Indus Towers for lithium-ion battery banks, to be executed by March 31, 2027. HEG Advanced Materials Limited (NSE: HEG) closed at ₹238.55 on September 18, up 5.00% on the BSE. The order is worth ₹217.56 crore including GST and comes from Indus Towers, with no promoter or group interest in the awarding entity. The order adds a meaningful battery-storage opportunity alongside HEG’s traditional graphite electrode business. The timing is also relevant because Replus Engitech is becoming an important part of the company’s move into battery solutions. The Q1 FY27 numbers provide additional context. Consolidated revenue increased 11.1% year-on-year to ₹680.8 crore, while net profit rose 16.7% to ₹122.3 crore. EBITDA increased 42.5% to ₹150.6 crore and EBITDA margin improved to 22.1% from 17.3%. The core graphite segment contributed ₹677.7 crore of revenue. My view is that the ₹217.56 crore order matters more for the business mix than for the immediate revenue impact. It is around one-third of Q1 quarterly revenue, but the execution runs until March 2027 and the contract value includes GST. So I would not treat the full order value as near-term revenue. The key question is whether Replus can convert this order into a sustained battery business with repeat orders and healthy margins. For the stock, I am watching ₹238.55 as the immediate reference level after Friday’s 5% move. A sustained move above this level with follow-through would keep the short-term setup constructive. Failure to hold the breakout would make the order announcement less meaningful from a trading perspective. Stance: Watch ₹238.55 for follow-through and track Replus order execution, margins and additional battery orders through FY27.

Disclosure: I am a SEBI Registered Research Analyst. This post is for informational purposes only and should not be considered investment advice.