HEG, Graphite soar up to 12% on heavy volume; what's driving GE stocks?

ICICI Securities remains constructive on HEG over the long term, supported by the global transition to electric arc furnace-based steelmaking and its entry into the graphite anode market.

Share prices of HEG, Graphite India today

 

Shares of graphite electrodes (GE) companies HEG and Graphite India rallied up to 12 per cent on the BSE in Tuesday’s intra-day trade backed by heavy volumes after HEG reported a good set of numbers for the second quarter of the financial year 2025-26. In comparison, the BSE Sensex was down 0.47 per cent at 83,141.94 at 10:51 AM.

 

These stocks had declined up to 7 per cent on Monday after Graphite India posted weak earnings for the quarter ended September 2025 (Q2FY26).

 

Individually, HEG surged 12 per cent to ₹580 on the back of a four-fold jump in average trading volumes. The stock had hit a 52-week high of ₹622 on July 31, 2025. As many as 12.85 million equity shares changed hands on the NSE and BSE. 

 

Meanwhile, the stock price of Graphite India soared 8 per cent to ₹579.90 on the BSE in intra-day trade. The stock had hit a 52-week high of ₹651.25 on October 31, 2025. 

 

What’s driving HEG, Graphite India stock price today?

 

In Q2FY26, HEG reported 23 per cent year-on-year (YoY) growth in standalone revenue from operations at ₹697 crore. Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter came in at ~₹118 crore with corresponding EBTDA margins at 17 per cent, down 30 bps quarter-on-quarter (QoQ). 

 

The reported profit after tax (PAT) for the quarter jumped 82 per cent QoQ at ₹131 crore. The PAT includes one-time gains of ₹86 crore in Q2FY26 and ₹31 crore in Q1FY26 from MTM investment in Graftech. 

 

GE outlook

 

Prices of graphite electrodes continued to face competitive headwinds while raw material costs, particularly petroleum needle coke, have not declined in tandem and consequently led to an impact on operating margins. Although the US tariff increased further during the quarter, its impact on the company’s performance has been mitigated to some extent by exports across multiple geographies, the management of Graphite India said.

 

The company is encouraged by the long-term dynamics of the graphite electrode industry, particularly with the global move towards decarbonization and the resulting adoption of the electric arc furnace process. With strong operational capabilities and financial discipline, the company is well positioned to meet rising demand from both Indian and international customers. Management said it continues to focus on cost competitiveness by optimizing operating costs and improving efficiencies.

 

ICICI Securities view on HEG, Graphite India

 

HEG’s topline witnessed a sequential improvement, driven by rise in volume by 6 per cent QoQ and > 7.7 per cent QoQ increase in graphite electrode realization (with an assumption of 95 per cent capacity utilisation) during the quarter. The 50 per cent reciprocal tariff on Indian imports poses a concern, as the US accounts for over 10 per cent of the company’s revenue, potentially impacting growth ahead. Nonetheless, ICICI Securities said it remains constructive on HEG over the long term, supported by the global transition to electric arc furnace-based steelmaking and its entry into the graphite anode market.

 

As regards to Graphite India, the brokerage firm said subdued global graphite electrode prices and the 50 per cent reciprocal tariff on Indian imports are expected to continue pressuring performance. This result update has already triggered a negative reaction, with the stock decreasing by ~6.7 per cent in Monday's trading session.

 

However, according to media reports, the US President Donald Trump indicated that Washington and New Delhi are nearing a new trade agreement, adding that tariffs imposed on India may be lowered in due course. CLICK HERE FOR MORE DETAILS