Synopsis: HEG has outlined a long-term Greentech roadmap focused on battery materials, energy storage and renewable power, aiming to build new growth businesses while benefiting from rising clean energy demand.
The shares of this small-cap company, majorly engaged in manufacturing and exporting of graphite electrodes and many more, were in focus after the company planned a capex of Rs. 5,500 Crores and scale its multiple manufacturing capacity.
With the market capitalization of Rs. 11,328 Crores, the shares of HEG Ltd were trading at around Rs. 587 per share which is 15 percent discount from its 52 week high of Rs. 690 per share and is trading at a P/E of 33 whereas industry P/E stands at 39.6
New Direction for Growth
HEG has shared its long-term vision through a proposed Greentech platform that will focus on three businesses: advanced battery materials, battery energy solutions (BESS) and green power generation. The company believes separating these businesses into a dedicated platform will give investors a clearer understanding of each business, improve access to funding and help create long-term shareholder value. The proposed restructuring has already received several regulatory clearances and is currently awaiting the final approval from the National Company Law Tribunal (NCLT).
Building a Strong Battery Materials Business
Battery materials are expected to become one of the biggest growth drivers for the company. HEG is setting up a 20,000 MT anode material plant, with plans to increase capacity to 60,000 MT by FY32.
Construction for the first phase is already underway, with engineering completed and most of the procurement finished. Alongside this, the company is also working on graphene and silicon-based anode materials that can support faster charging and higher battery performance. A 200 MT pilot facility has been running for the past year, and the products developed there are already being tested and qualified by global battery manufacturers, giving the company an early position in this growing market.
Expanding Battery Energy Storage Business
HEG is also increasing its presence in the battery energy storage market through REPlus. The company currently operates a 1 GWh manufacturing facility and plans to expand it to 6 GWh by H2 FY27. Its battery systems are designed for electric vehicles, renewable energy projects and grid-scale storage applications.
The company has already commissioned 100 MWh of projects, has 1,500 MWh under execution and is pursuing a 5,000 MWh opportunity pipeline across India and international markets. These projects cover sectors such as utilities, commercial customers and energy storage applications, showing that the business is gaining traction.
Strengthening Green Power Operations
The company is also expanding its renewable energy portfolio. It already operates hydro and wind power assets and is adding new solar, battery storage and hydro projects over the next few years. According to the recent presentation, the existing hydro projects are debt-free and continue to generate steady cash flows, which will help support future investments across the Greentech platform. The company believes this balanced mix of stable cash-generating assets and new growth businesses will strengthen its long-term position in the clean energy sector.
Industry Trends Support the Growth Plan
The battery materials industry is expected to witness strong long-term growth as demand for electric vehicles (EVs) and battery energy storage systems (BESS) continues to rise. HEG expects global lithium-ion battery production to grow from around 2.3 TWh in 2025 to 3 TWh in 2026, and further to 8 TWh by 2035. Over the same period, global battery graphite anode demand is projected to increase from 2.9 million MT in 2025 to 8 million MT by 2035. BESS is emerging as one of the fastest-growing segments, recording 51% year-on-year growth between 2024 and 2025, and is expected to account for 28% of total lithium-ion battery demand.
The segment is being driven by the increasing need for grid stability, energy security and the rapid growth of data centres. At the same time, EVs are expected to remain the largest source of battery demand, accounting for 65% of total lithium-ion battery demand in 2025, while the global EV market is projected to expand from 1.6 TWh in 2025 to 3C to 4C and above, increasing the need for fast-charging batteries. HEG believes synthetic graphite will remain the preferred choice for these applications because of its strong technical performance and cost competitiveness.
In India, the company sees a significant growth opportunity as domestic cell manufacturing capacity is expected to reach 250 GWh by 2035, supported by the government’s PLI scheme and initiatives to strengthen the local battery supply chain. HEG also expects India’s graphite anode demand to cross 100,000 MT by 2030, with the energy storage (ESS) segment leading demand, followed by electric vehicles. According to the company, these trends are expected to create a strong and sustained market for synthetic graphite anodes in the years ahead.
Roadmap for the Future
HEG has drawn up a ₹5,500 crore investment plan to build its Greentech business over the next few years, with the anode materials segment at the centre of its growth strategy. The company plans to fund this through ₹1,500 crore of equity and ₹4,000 crore of debt. A major share of the investment, ₹3,150 crore, will go towards expanding the anode materials business, followed by ₹2,000 crore for green power projects.
It has also earmarked ₹250 crore for scaling its battery energy solutions business to 6 GWh and ₹200 crore for its graphene business. According to the company, steady cash flows from its existing hydropower assets and a strong equity base will support these expansion plans. HEG expects this investment to strengthen its Greentech platform, with a projected net worth of around ₹2,700 crore by FY27 and a steady-state ROCE of around 17% by FY30.
HEG is positioning itself for long-term growth by building a strong presence across battery materials, energy storage and renewable power. The company is focusing on businesses that are expected to benefit from the global shift towards clean energy. With planned capacity expansion, technology development and support from its existing green power assets, HEG aims to create a sustainable and diversified growth platform for the future
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