HEG Limited – FY2025‑26 Results & Key Developments

1. Financial Highlights

• Revenue: ₹2,709.48 cr for the year (+19.4% YoY); Graphite contributed ~93%.
• Profit/Loss: Quarterly loss of ₹118.80 cr (EPS –₹6.16) but full‑year profit of ₹337.97 cr (EPS ₹17.51).
• EBITDA (Operating profit before working‑capital changes): ₹536.78 cr for the year.
• Cash Position: End‑year cash & cash equivalents fell to ₹40.59 cr from ₹50.76 cr.
• Dividend: Final dividend of ₹3.40 per share (face value ₹2) recommended, payable within 30 days of AGM.
• Balance Sheet: Total assets rose to ₹6,165.75 cr; equity increased to ₹4,757.92 cr; liabilities modestly higher at ₹1,407.83 cr.

2. Segment Performance

Segment	Revenue (₹ cr)	Profit (₹ cr)
Graphite (core)	2,532.19	270.34
Power	28.94	14.72
Others (discontinued)	7.37	–5.62

The Graphite business continues to drive growth, while Power remains a small, low‑margin contributor.

3. Strategic Moves

• Discontinuation of Non‑Core Operations:
  • Medical Transcription (Scribe Division) and Infotech Division sold/closed.
  • Sale proceeds and related cash flows reflected in investing activities.
• Focus on Core Graphite Business: Streamlining operations to improve margins and capital efficiency.
• Director Continuation: Shri Shekhar Agarwal (DIN 00066113) will remain as a non‑executive director beyond age 75, subject to shareholder approval.

4. Regulatory & Compliance

• Board approvals complied with SEBI (LODR) Regulations 2015 (Regulations 30, 33, 17(1A)).
• Adoption of new Labour Codes increased employee benefit provisions by ₹15.26 cr (₹7.12 cr in the quarter).
• Auditors issued an unmodified opinion on both standalone and consolidated statements.

5. Cash Flow Overview

• Operating Activities: Net cash inflow ₹213.19 cr (year).
• Investing Activities: Net outflow ₹10.71 cr (mainly PP&E purchases and investment sales).
• Financing Activities: Net inflow ₹96.88 cr (working‑capital borrowings offset by dividend payout).

6. Investor Implications

• Opportunities: Strong FY profit, dividend payout, and a clear focus on the high‑margin Graphite segment.
• Risks: Quarterly loss, declining cash reserves, high dividend relative to earnings, and loss of diversification from discontinued businesses.
• Action Points: Monitor quarterly earnings trends, cash‑flow sustainability, and progress on any future acquisitions (e.g., hydro‑power assets mentioned in associate notes).

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Prepared on 29‑Apr‑2026 based on HEG Limited’s Board‑approved announcement.