HEG's June-quarter results landed with a rare combination: a sharp operating beat and a stock that surged 9.42% intraday on July 23, touching Rs 658.5. The rally rewrites the short-term narrative for India's leading graphite electrode maker, but the real tension sits inside the numbers themselves.
The company reported consolidated revenue of Rs 680.8 crore, up 11.1% year-on-year. That top-line expansion was overshadowed by what happened further down the income statement. EBITDA jumped 42.5% to Rs 150.6 crore, pushing the EBITDA margin to 22.1% from 17.3% a year earlier. A separate research note pegged EBITDA even higher at approximately Rs 161 crore with a 23.7% margin, citing a sequential improvement driven by lower raw material costs and a roughly 12% quarter-on-quarter rise in graphite electrode realizations.
The margin story is the quarter's centerpiece. Gross margins improved by 560 basis points sequentially to 63%, helped by cheaper needle coke and better capacity utilization—assumed at 92%. That operating leverage flowed straight into segment results, which nearly doubled to Rs 149.8 crore from Rs 75.3 crore in the year-ago period.