Graphite India soars 8%, hits 4-year high on huge volume; HEG rallies 6%

Graphite India stock hit a four-year high at ₹622.55, surging 8% on the BSE in Wednesday's intra-day trade, surpassing its previous high of ₹614 touched on December 4, 2024.

Share price of Graphite India, HEG today

 

Shares of graphite electrodes (GE) companies Graphite India and HEG rallied up to 8 per cent on the BSE in Wednesday’s intra-day trade backed by heavy volumes owing to a healthy business outlook.

 

Among individual stocks, Graphite India hit a four-year high of ₹622.55, surging 8 per cent on the BSE in intra-day trade. The stock surpassed its previous high of ₹614 touched on December 4, 2024. It was quoting at its highest level since October 2021. The average trading volumes at the counter jumped over 10-fold. A combined 9.8 million equity shares representing 5 per cent of total equity of Graphite India changed hands on the NSE and BSE.

 

Shares of HEG soared 6 per cent to ₹543.95 in intra-day trade. The stock had hit a 52-week high of ₹622 on July 31, 2025.

 

At 02:26 PM; Graphite India and HEG were up 3 per cent and 2 per cent respectively, as compared to 0.11 per cent decline in the BSE Sensex.

 

Graphite electrodes (GE) sector overview, outlook

 

Graphite India is the largest Indian producer of graphite electrodes and one of the largest globally, by total capacity. Its manufacturing capacity of 98,000 tonnes per annum is spread over three plants at Durgapur and Nashik in India and Nuremberg in Germany. 

 

The focus on substantial decarbonization measures in developing economies supports the growth of the Electric Arc Furnace (EAF) process compared with the Blast Furnace / Bessimer Oxygen Furnace (BF/BOF) process.

 

Governments around the world are also introducing stringent environmental regulations to reduce pollution. This will further support the growth of the EAF process and along with decarbonization, drive the future demand for graphite electrodes, Graphite India said in its investor presentation. The use of the EAF process in the steel industry is not only important for sustainable steel production but is a more cost effective manufacturing method, the company said.

 

EAF, which offers a significantly lower carbon footprint versus its traditional blast furnaces, are central to the steel industry's transformation. The global shift towards electric arc furnace steelmaking continues to accelerate, driven by climate goals. This transition is expected to generate substantial incremental demand for our products, which is estimated at 150,000 to 200,000 tons annually by 2030, excluding China, reinforcing industry's long-term growth potential, HEG said.

 

GE demand was impacted due to a reduced steel demand because of the weak global economic outlook and elevated inflation pressures. India Ratings and Research (Ind-Ra) expects an improvement in HEG’s operational performance, with stabilisation of prices and sustained capacity utilisation to meet the anticipated higher demand in FY26. Ind-Ra expects the demand to recover in FY26, driven by growth in EAF over the traditional blast furnace/basic oxygen furnace following the developed world’s focus on substantial decarbonisation measures.

 

Ind-Ra expects the domestic steel demand to be healthy in FY26. Furthermore, there has neither been any new entrant in the GE segment nor any capacity enhancement announced in the western markets over the past 25 years. In fact, closure of some smaller graphite units in Europe and other geographies over the last two years provides an opportunity for sizable players such as HEG.