HEG Advanced Materials' subsidiary, Replus Engitech, has secured a ₹127.35 crore order from Indus Towers for lithium-ion battery banks. This follows a major contract in September and highlights the company's progress in its new energy storage business. Investors should monitor how the firm manages the scale of these large orders alongside its ongoing business transformation.
Replus Engitech, a subsidiary of HEG Advanced Materials, has secured a supply contract valued at ₹127.35 crore from Indus Towers. The order involves the delivery of lithium-ion battery banks, with the project scheduled for completion by May 31, 2027. This development comes shortly after the company announced a larger order of ₹217.56 crore from the same client in September 2026, signaling a consistent flow of work for the firm in the energy storage space.
This contract is part of a larger push by the company into the green energy sector. Replus Engitech has also signed a memorandum of understanding with Indus Towers to supply 1.5 gigawatt-hours (GWh) of Battery Energy Storage System (BESS) capacity over the next two years. For shareholders, this represents a significant shift from the company’s traditional reliance on graphite electrodes, which are primarily used in steel production. Following a corporate restructuring and demerger, the company is now actively positioning itself as a player in the renewable energy and power storage value chain.
While these orders indicate strong demand for the company’s new offerings, investors should be aware of the operational risks. Scaling manufacturing to meet the 1.5 GWh target requires precise execution. Any delays in supply or issues during the installation process could impact the project timeline. Additionally, the battery manufacturing industry is sensitive to fluctuations in the cost of raw materials. Sharp increases in component prices can put pressure on profit margins, potentially offsetting the gains from revenue growth.
Another important aspect for investors to consider is the company's financial history. There has been past concern regarding equity dilution, where the number of shares outstanding increased significantly, impacting earnings per share. As the company continues to spend on expanding its new green energy business, tracking how it manages debt and cash flow, as well as the actual profitability of these new contracts, will be crucial. The stock market reacted with a 0.79% rise on October 1, 2026, following the announcement. Future updates on project delivery and order execution progress in the coming quarterly results will be key monitorables for shareholders.