HEG Advanced Materials Limited – Investor Presentation Summary
Key Operational Highlights
- Anode Materials: 200 MT operational demo plant operational at Mandideep, Madhya Pradesh for past 12 months; 20K MT commercial plant under construction with COD June 2027; Expansion to 44K MT planned with Phase II COD March 2029
- Graphene Materials: 90 MT of committed orders and LOIs across paints & coatings (21 MT), concrete & construction (15 MT), and international graphene company (54 MT)
- REPLUS Engitech: Technology-driven manufacturer of lithium-ion battery packs and energy storage solutions for electric mobility, stationary storage and specialized applications
- Green Power Businesses: 86 MW Malana Power Company hydroelectric project (operational since 2001); 192 MW AD Hydro Power Limited hydroelectric project (operational since 2010); 14 MW wind power project in Maharashtra (operational since 2014); 200 MWh BESS project in Gujarat (64% complete, target commissioning Q3 FY27)
Key drivers of operational performance: Advanced stage of sample approvals and material qualification for anode materials; Commercial validation to begin in early 2027; Strong progress towards progressive commitments of over 100,000 MT anode volumes
Segment-wise Performance
- Advanced Materials (TACC): Focus on anode materials, graphene and emerging applications; R&D focus on silicon-doped synthetic graphite anode, graphene-enhanced anodes, and hard carbon cell platform
- REPLUS Engitech: Battery and energy-storage solutions spanning mobility, commercial, industrial and grid applications; Capabilities span Battery Management Systems (BMS), Energy Management Systems (EMS) and Battery Energy Storage Systems (BESS)
- Green Power Businesses: Renewable power capabilities built on decades of industrial experience and execution; Provides stable cash flows and financial foundation for the Group
Explanation of significant changes in segment performance: The Group's financial performance is highly dependent upon weather/wind/hydraulic conditions and seasonal in nature with majority of operations occurring from April to September
Financial Highlights
Standalone Performance (₹ in crore):
- Q2 FY27 Revenue from Continuing Operations: ₹7.6; Q1 FY27: ₹3.1; H1 FY27: ₹10.7; FY26: ₹14.6
- Q2 FY27 Other Income: ₹42.4; Q1 FY27: ₹34.1; H1 FY27: ₹76.6; FY26: ₹164.3
- Q2 FY27 Continuing Operations EBITDA: ₹41.0; Q1 FY27: ₹28.4; H1 FY27: ₹69.5; FY26: ₹110.1
- Q2 FY27 PAT from Continuing Operations: ₹36.5; Q1 FY27: ₹16.1; H1 FY27: ₹52.6; FY26: ₹96.6
Consolidated Performance (₹ in crore):
- Q2 FY27 Revenue from Continuing Operations: ₹429.9; Q1 FY27: ₹295.9; H1 FY27: ₹725.8; FY26: ₹909.7
- Q2 FY27 Continuing Operations EBITDA: ₹312.8; Q1 FY27: ₹125.2; H1 FY27: ₹438.0; FY26: ₹611.3
- Q2 FY27 PAT from Continuing Operations: ₹208.9; Q1 FY27: ₹60.2; H1 FY27: ₹269.1; FY26: ₹383.8
- Q2 FY27 Net PAT (Continuing & Demerged): ₹306.1; Q1 FY27: ₹155.3; H1 FY27: ₹461.4; FY26: ₹521.9
Margins: Not explicitly specified in presentation
YoY/QoQ comparison: Current financial figures are not comparable to previous financial figures owing to demerger of HEG Limited
Drivers of financial performance: Evolving business mix and varying stages of development across verticals; Green Power Business with differentiated model, profitable operations, debt-free position and stable cash flows
Comparison to market estimates: Not specified
Key Risks: Seasonal nature of hydro/wind power business; Dependence on weather conditions; Global supply chain dependencies for critical materials
Geographical Revenue Split
Domestic vs Export/Regional Revenue: Not specified
Regional Breakdown: Built in India, serving global markets; Strong pull from North America, Europe and Asia Pacific for anode materials
Balance Sheet Snapshot
Standalone (H1 FY27, ₹ in crore):
- Non-Current Assets: ₹1,672.7; Net Fixed Assets: ₹54.1; Financial Assets: ₹1,618.6
- Current Assets: ₹473.7; Cash & Bank: ₹283.0; Trade Receivables: ₹7.7; Other Current Assets: ₹183.0
- Equity: ₹2,106.5; Equity Share Capital: ₹66.0; Other Equity: ₹2,040.5
- Non-Current Liabilities: ₹21.9; Current Liabilities: ₹18.0
Consolidated (H1 FY27, ₹ in crore):
- Non-Current Assets: ₹2,316.1; Net Fixed Assets: ₹1,974.4; Financial Assets: ₹304.6
- Current Assets: ₹2,119.9; Inventories: ₹100.5; Trade Receivables: ₹192.5; Cash & Bank: ₹1,322.8; Other Current Assets: ₹504.1
- Equity: ₹2,509.8; Equity Share Capital: ₹66.0; Other Equity: ₹2,443.8
- Non-Current Liabilities: ₹1,281.6; Borrowing: ₹1,035.9
- Current Liabilities: ₹644.6; Borrowings: ₹95.1; Trade Payables: ₹344.1
Financial Health Insights: Strong cash position; Debt-free position in Green Power Business; Stable cash flow generation from renewable assets
Capex & Cash Flow Health
Capital Expenditure: Anode expansion from 20K MT to 44K MT; 200 MWh BESS project under development
Free Cash Flow: Not specified
Operating Cash Flow: Not specified
Net Debt Movement: Not specified
Investment Rationale: Focus on capacity expansion for anode materials; Graphene production scaling; Battery energy storage systems development
Strategic & R&D Initiatives
Investments in Innovation: 5+ patents filed; ~2 decades of cumulative advanced-materials experience; Lab-to-industrial scale-up across pilot and plant facilities; Focus on "Research to Revenue"
Expected impact on growth: Anode expansion to 44K MT; Graphene initiative 500 MT in 2028; Multiple growth engines from one advanced materials platform
Strategic Rationale: Building globally competitive advanced materials capabilities; Diversifying revenues; Creating sustainable value; Participating in energy transition
Industry Trends & Business Environment
Macro/Industry Trends: Global lithium-ion battery production expected to grow from ~2.3 TWh in 2025 to ~3 TWh in 2026 to ~8 TWh in 2035; Total battery graphite anode demand expected to increase from approximately 2.9 Mn MT in 2025 to 8.0 Mn MT by 2035; BESS to account for ~28% of total lithium-ion battery market by 2030; Significant opportunity for domestic manufacturing of anode materials in India
Impact on Company: Driving demand for anode materials across EV and energy storage applications; Supporting domestic cell PLI with >70% DVA; Creating market opportunities for graphene in construction, paints, textiles, and energy storage
Management Commentary & Growth Outlook
Strategic Outlook: "Our priorities remain disciplined capital allocation, timely execution, customer development and improving the long-term competitiveness of each business" - Mr. Riju Jhunjhunwala, Chairman, MD & CEO
FY Guidance: Anode Phase I COD: June 2027; Anode Phase II COD: March 2029; BESS project target commissioning Q3 FY27
Market Share Targets: Not specified
Risks and Opportunities: Seasonal nature of hydro/wind power business; Supply chain diversification opportunities; Technology innovation in advanced materials
ESG Updates
- Sustainable by design approach across operations
- Focus on low-carbon future through renewable energy assets
- ESG practices integrated into business operations
Corporate Leadership
Key Managerial Personnel: Mr. Riju Jhunjhunwala (Chairman, MD & CEO); Ms. Neha Rajvanshi (President & CFO); Mr. Ravi Gupta (AVP - Finance, Legal & Company Secretary)
Awards & Recognition: CII Award for Excellence in R&D 2026 in Materials, Chemicals & Textiles – Large Enterprise category (October 2026)