Summary:
Meesho, Power Grid, Hexaware Technologies, HUDCO, ICICI Prudential Life and Page Industries are in focus following key corporate developments. Meesho faces a proposed ₹1,435 crore block deal, while Power Grid secured a major renewable energy transmission project. Hexaware announced a CEO transition, HUDCO committed up to ₹25,000 crore for Bihar infrastructure, and ICICI Bank increased its stake in ICICI Prudential Life. Page Industries is facing a legal claim in Dubai, adding a potential overhang for investors.
Shares of graphite electrode manufacturers surged on Wednesday, September 9, after US-based GrafTech International announced a minimum 30% increase in graphite electrode prices. The move triggered a sharp rally in Indian graphite stocks, with Graphite India surging as much as 17.8%, while HEG Advanced Materials hit its 5% upper circuit.
Graphite India Surges as Electrode Prices Rise
Graphite India shares jumped as much as 14.39% to ₹839.95 on the NSE earlier in the session and subsequently surged nearly 18% to ₹865. The stock emerged as one of the top gainers on the BSE Smallcap index and was among the most actively traded stocks on both exchanges.
The rally came despite weakness in the broader market. At 10:15 am, the Sensex was down 606 points, or 0.80%, at 74,971, while the Nifty 50 declined 149.5 points, or 0.63%, to 23,485.60.
Graphite India is currently the only listed pure-play exposure to the graphite electrode business in India. The company is one of the country's leading manufacturers, with installed electrode capacity of 98,000 tonnes. Another reported figure puts its annual manufacturing capacity at 80,000 tonnes.
Higher electrode prices could improve realisations and margins for domestic producers if the increase is sustained. The move is particularly significant after a prolonged period of weak graphite electrode pricing. Graphite electrodes are key consumables used in electric arc furnaces to melt steel scrap and are also used in the production of other metals and alloys.
Why GrafTech Raised Prices
GrafTech said the minimum 30% price increase is effective immediately for all open commercial negotiations. The action follows its earlier pricing initiative announced in March 2026.
The company said graphite electrode prices have declined considerably over the past three years, while raw material, energy and logistics costs have increased. GrafTech has attempted to reduce costs through workforce reductions, capacity idling and a planned closure of its graphite electrode manufacturing facility in Monterrey, Mexico.
The company has also announced a 51,000-tonne capacity reduction, which could tighten global supply and provide further support to electrode pricing.
According to industry estimates, the latest move could potentially translate into an increase of around $1,500 per tonne in graphite electrode realisations for Indian producers. If sustained, this could provide a meaningful boost to profitability.
Why HEG May Not Directly Benefit
HEG Advanced Materials also surged 4.99% to ₹271.50 and hit its upper circuit. However, the current listed HEG entity may not directly benefit from higher graphite electrode prices.
Following the demerger, the existing listed company has been renamed HEG Advanced Materials and now houses advanced materials, battery energy solutions, green power businesses and amalgamated Bhilwara Energy.
The graphite electrode business has been transferred to HEG Graphite, which is proposed to be renamed HEG Ltd and separately listed as a pure-play graphite electrode company. The new graphite-focused entity is expected to list separately next month.
Therefore, any sustained benefit from higher graphite electrode prices is expected to accrue primarily to the new HEG graphite entity rather than the currently listed HEG Advanced Materials.
Graphite India’s Strong Earnings Add Support
Graphite India's latest quarterly performance also provides a positive backdrop. Its Q1 profit rose 28.4% year-on-year to ₹172 crore, while revenue increased 26.6% to ₹842 crore.
With GrafTech's price hike signalling improving pricing discipline and potential supply tightening, the development has strengthened expectations of better realisations and margins for graphite electrode manufacturers.
