HEG Advanced Materials subsidiary wins Rs 127.35 crore Indus Towers battery-bank orders

HEG Advanced Materials Limited has secured a new foothold in the telecom energy-storage supply chain after its subsidiary, Replus Engitech Private Limited, received orders worth Rs 127.35 crore from Indus Towers Limited for lithium-ion battery Banks.

The order value is inclusive of GST, and the supplies are to be completed on or before May 31, 2027, unless the two parties mutually agree to extend the deadline. Indus Towers, formerly Bharti Infratel, is a domestic customer, and the contract is subject to the general terms set out in the purchase orders.

The transaction is relevant because it adds an order-backed business opportunity outside HEG Advanced Materials’ established graphite-electrode operations. The listed company has historically derived its business from graphite electrodes used in electric arc furnace steelmaking, while it has also been building exposure to lithium-ion battery-related materials and energy-storage opportunities.

On a gross order-value basis, the Rs 127.35 crore contract is equivalent to about 18.7 per cent of HEG Advanced Materials’ reported net sales of Rs 680.79 crore in the June 2026 quarter. The comparison is indicative, since the order includes GST and will be executed over a period extending to May 2027 rather than within a single quarter.

The company had previously outlined a broader diversification plan through battery materials. Its wholly owned subsidiary, TACC Limited, is developing a 20,000-tonne graphite-anode facility for lithium-ion batteries, with commercial production targeted in the first quarter of FY28. Management has indicated that the anode project could initially operate at 40 per cent to 50 per cent utilisation, though these targets remain subject to project commissioning, customer contracts and execution.

The Replus Engitech order is separate from the planned graphite-anode manufacturing venture, but it adds exposure to the downstream battery-storage ecosystem. Lithium-ion battery banks are used in telecom networks to provide backup power and improve reliability at tower locations, where uninterrupted operations are important during grid outages.

HEG Advanced Materials stated in its disclosure that neither its promoter, promoter group nor group companies has any interest in Indus Towers. It also confirmed that the transaction does not qualify as a related-party transaction.

The order comes after an improvement in the company’s reported operating performance in the June quarter. Net sales rose 10.35 per cent year-on-year to Rs 680.79 crore, while profit after Tax was Rs 91.84 crore compared with Rs 88.49 crore in the corresponding quarter of the previous year. PBIDT excluding other income increased to Rs 150.58 crore from Rs 105.43 crore, with the margin improving to 22.12 per cent from 17.09 per cent.

The core graphite-electrode business continues to remain central to the company. Management has said it is pursuing a 15,000-tonne brownfield graphite-electrode expansion that would take installed capacity from 100,000 tonnes to 115,000 tonnes by 2028. The company has also cited global electric arc furnace additions as a structural demand driver for electrodes, although pricing, raw-material costs, trade measures and freight disruptions remain important risks.

As of 3:31 pm on October 1, 2026, HEG Advanced Materials shares were trading at Rs 242.00, up 1.94 per cent from the previous close. The stock remained 67.3 per cent below its 52-week high of Rs 739.30 and about 11.8 per cent above its 52-week low of Rs 216.40. Over the past year, the share price has declined 54.46 per cent, compared with a 3.22 per cent fall in the BSE 500.

The immediate focus will be on Replus Engitech’s delivery schedule and the commercial contribution from the Indus Towers contract, as HEG Advanced Materials continues to invest in battery-related businesses alongside its legacy electrode operations.

Disclaimer: The article is for informational purposes only and not investment advice.