HEG Advanced Materials shares climbed 8% following two fresh orders totaling roughly ₹345 crore from Indus Towers for lithium-ion battery banks. The company is currently executing a strategic pivot toward energy storage and anode materials after completing the demerger of its legacy graphite business. Investors may monitor the project execution of the battery energy storage systems and the company's new focus on advanced materials.
HEG Advanced Materials saw a significant market move on Tuesday, with shares rising 8% as investors reacted to new business developments within its subsidiary, Replus Engitech. The company secured two major contracts from Indus Towers for the supply of lithium-ion battery banks. The combined value of these orders stands at approximately ₹345 crore, providing a clear visibility on immediate order flow for its battery energy storage business.
Beyond these specific supply contracts, the company has entered into a Memorandum of Understanding with Indus Towers to supply 1.5 GWh of Battery Energy Storage System (BESS) capacity over the next two years. This collaboration marks a significant step in the company’s efforts to establish itself in the telecom infrastructure and energy management space. The management is also exploring future-looking technologies, including research into sodium-ion battery solutions to expand its energy storage portfolio.
The stock performance comes amid a major corporate restructuring for the group. The company has recently spun off its traditional graphite electrode business into a separate entity named HEG Graphite Ltd. Shareholders who held the stock as of the record date on September 7, 2026, were entitled to shares in the new graphite entity on a one-to-one basis. This separation aims to allow the parent company, HEG Advanced Materials, to focus entirely on the high-growth potential of anode materials, silicon-based production, and green energy technologies.
Leadership roles have been realigned to support this strategic direction. Post-demerger, Ravi Jhunjhunwala leads the newly formed graphite company, while Riju Jhunjhunwala has taken over as the Chairman and Managing Director of HEG Advanced Materials. This leadership change signals the company's commitment to driving its new operational focus independently of the legacy graphite business.
While the recent order wins and strategic pivot appear positive, investors may watch several operational factors closely. The success of this business transformation relies heavily on the timely execution of the large-scale BESS capacity expansion and the stable ramp-up of its anode materials production. Additionally, as the company transitions into a new business model, the market will likely track how these battery and energy storage ventures impact financial margins, especially as the company navigates the competitive and capital-intensive nature of the advanced materials sector. Future updates regarding the commissioning of new production facilities and the scaling of the sodium-ion research will be important monitorables for stakeholders.