HEG Share Price Soars 12% Today — Key Factors Behind the Spike
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HEG’s heg share price jumped 12% to ₹580 on Tuesday, November 10, 2025, driven by strong Q2FY26 earnings that exceeded market expectations. The stock rallied on four-fold trading volumes as 12.85 million equity shares changed hands across NSE and BSE. This spike reverses Monday’s 7% decline tied to competitor Graphite India’s weak quarterly results. We explore what triggered this impressive recovery and what it means for investors monitoring this graphite electrode leader.
Strong Q2 Earnings Fuel Recovery
HEG reported 23% year-on-year revenue growth to ₹697 crore in Q2FY26, demonstrating robust operational performance. The company’s profit after tax surged 82% quarter-on-quarter to ₹131 crore, bolstered by ₹86 crore in one-time gains from Graftech investment valuations. EBITDA landed at ₹118 crore with stable margins of 17%, down just 30 basis points sequentially despite competitive pressures in global graphite electrode markets.
The earnings beat reflected HEG’s ability to navigate commodity headwinds through operational excellence. Volume production increased 6% quarter-on-quarter while graphite electrode realization improved by 7.7%, indicating stronger pricing power and improved capacity utilization approaching 95%. This performance directly justified the stock’s 12% intraday surge, signaling investor confidence in management’s execution.
Global Decarbonization Trends Support Long-Term Thesis
The graphite electrode industry stands at an inflection point driven by the global shift toward electric arc furnace (EAF) steelmaking. This transition reduces reliance on coal-based blast furnaces, aligning with decarbonization commitments worldwide. HEG, operating the world’s largest single-site integrated graphite electrode plant at Mandideep, Madhya Pradesh, remains ideally positioned to capture demand growth from this structural shift.
ICICI Securities maintains a constructive long-term view on HEG, highlighting that the company’s entry into graphite anode manufacturing represents a strategic hedge against traditional electrode market volatility. The expanding electric vehicle market and India’s PLI scheme for battery cell production create multi-billion rupee opportunities for anode suppliers.
Here’s what investors are discussing on X: Link to latest discussions about HEG share price momentum and earnings surprise.
US Tariffs and Trade Uncertainties
The 50% reciprocal tariff on Indian imports poses the most significant near-term headwind for heg share price movements. The US accounts for over 10% of HEG’s revenue, making trade policy pivotal to guidance. ICICI Securities specifically flagged this tariff concern as the primary risk to growth acceleration.
However, recent media reports suggest Washington and New Delhi are negotiating a trade agreement, with US President Donald Trump indicating potential tariff reductions. If negotiations yield relief, this could unlock significant upside, particularly for export-dependent graphite electrode manufacturers. HEG’s geographic diversification across 30+ countries provides some protection, but US market normalization would substantially improve margins and growth trajectory.
Strategic Investments in Graphite Anode Space
HEG secured a ₹1,230 crore credit facility from State Bank of India to fund its Lithium-Ion Battery grade Graphite Anode manufacturing facility through subsidiary The Advanced Carbons Company (TACC). This 20,000 MTPA plant, expected to commission by March 2027, targets the emerging battery materials market. The project carries a total capex of ₹1,850 crore and is projected to deliver 25%+ EBITDA margins with 20%+ return on capital employed.
India’s lithium-ion battery demand is expected to reach 150-160 GWh by 2030, requiring approximately 1.4 lakh tonnes of anode material currently imported entirely. HEG’s entry positions it to capture a substantial share of this domestically produced supply, reducing import dependency while improving gross margins through backward integration. Don’t miss our recent post about Wall St reacts sharply to Musk’s $1 trillion pay plan approval by Tesla investor.
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Market Performance and Valuation Context
HEG trades at a 52-week range of ₹331.25 to ₹619.50, with the current price near mid-range levels. As of latest data, the stock shows a PE ratio of approximately 52.8x, reflecting market enthusiasm but demanding strong earnings growth justification. The market capitalization stands at ₹10,400 crore, ranking 7th within the Industrial Consumables sector.
Analyst consensus suggests a 12-month price target of ₹590, implying limited near-term upside from November’s trading levels. However, long-term growth forecasts suggest earnings expansion of 42.8% annually through FY28, driven by anode facility ramp-up and stronger graphite electrode realization. Forward-looking investors should monitor quarterly execution metrics closely.
FAQs
What triggered HEG’s 12% share price spike on November 10, 2025?
HEG reported Q2FY26 results showing 23% YoY revenue growth to ₹697 crore and 82% QoQ profit surge to ₹131 crore. The earnings beat, combined with four-fold trading volume increase, signaled strong operational momentum. The stock reversed Monday’s 7% decline following competitor Graphite India’s weak results, creating a one-day volatility compression on positive surprise.
How do US tariffs impact HEG’s future growth prospects?
The US accounts for over 10% of HEG’s revenue. The current 50% reciprocal tariff on Indian imports threatens growth acceleration. However, ongoing trade negotiations between Washington and New Delhi may yield tariff relief. HEG’s diversified export base across 30+ countries provides downside protection, though US market normalization would meaningfully improve margins.
When will HEG’s graphite anode facility become operational?
HEG’s subsidiary TACC will commission the 20,000 MTPA graphite anode plant by March 2027, with ₹1,230 crore secured from SBI. The project targets India’s growing lithium-ion battery production, expected to reach 150-160 GWh by 2030. This facility is projected to deliver 25%+ EBITDA margins once fully operational.
