HEG Limited — Credit Ratings, 29-05-2025: Credit Rating

India Ratings has placed HEG Limited’s issuer and debt ratings on Rating Watch with Developing Implications following approval of a modified scheme of arrangement involving HEG and its subsidiaries. The ratings reflect uncertainty around regulatory approvals and their impact on the credit profile of the restructured entities. HEG experienced a 10% revenue decline in FY25 due to lower graphite electrode prices, though improving demand and spreads are expected in FY26 driven by electric arc furnace steel growth. Liquidity is adequate with cash reserves of INR444 Cr and moderate debt of INR585 Cr. The final outcome of the scheme will be critical to clarify HEG’s future credit metrics and liquidity position.