On July 31, 2025, HEG share price (NSE: HEG) soared 14.35% to ₹610.90, while Graphite India share (NSE: GRAPHITE) rose 6% to ₹586, even as the broader Sensex fell 0.70%. HEG shares touched a high of ₹612 during the day, nearing its 52-week peak of ₹619.50.
HEG reported a rise in revenue in Q1FY26, mainly due to a 6% quarter-on-quarter increase in graphite electrode prices, assuming 85% capacity utilisation. However, margins dropped slightly due to higher raw material, power, and fuel costs.
The company also announced a ₹650 crore capex to add 15,000 TPA capacity over the next 30 months. This move aims to meet growing global demand for graphite electrodes.
HEG’s announcement comes at a time when several global graphite electrode plants have shut down, removing 1.2 lakh tons of capacity, or 16% of global supply (excluding China and Russia). This has improved the demand-supply outlook.
Graphite electrodes are key components used in electric arc furnace (EAF) steelmaking, a cleaner method of steel production. As the world moves towards low-carbon steel, demand for electrodes is expected to rise.
By 2030, 170–180 million tons of EAF steel capacity (excluding China) may be added, leading to an extra 200,000 tons of graphite electrode demand.
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HEG is also entering the graphite anode market used in lithium-ion batteries. Currently, India depends on China for this material, but domestic demand could rise to 1–1.4 lakh tons by 2030. HEG plans to tap into this market with local production.
HEG’s strong Q1 performance, expansion strategy, and entry into the EV supply chain have boosted investor confidence. With global demand rising and supply tightening, the outlook for graphite electrode makers like HEG and Graphite India appears strong.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 31, 2025, 1:45 PM IST
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