HEG Shares Jump 5% After Rs 217.56 Crore Order from Indus Towers

Shares of HEG saw a notable rise of 5 percent on Monday following the announcement that its subsidiary, Replus Engitech, has secured a significant order worth Rs 217.56 crore from Indus Towers. The order involves the supply of lithium-ion battery banks, with execution scheduled to conclude by March 31, 2027.

Replus Engitech, known for its focus on advanced energy storage solutions, is expected to deliver these battery systems as part of Indus Towers’ infrastructure enhancement efforts. Lithium-ion battery banks are increasingly critical for telecom infrastructure, providing reliable backup power to maintain network uptime during outages or grid instability.

Indus Towers is one of the largest telecom tower companies in India, managing extensive infrastructure that supports various mobile operators. The inclusion of lithium-ion battery banks represents a move toward modernizing power backup systems, which traditionally depended on lead-acid batteries. Lithium-ion technology offers advantages like longer life span, better efficiency, and lower maintenance costs, which align with the telecom sector’s push for more sustainable and reliable infrastructure solutions.

The order’s timeline, extending to 2027, indicates a phased or large-scale deployment that could span several years. This kind of contract typically provides steady revenue visibility for the supplier and can be an indicator of growing demand for energy storage technologies within the telecom industry.

HEG’s stock market reaction reflects investor optimism about the company’s ability to capitalize on emerging opportunities in the energy storage and advanced materials sector. This development occurs amid HEG’s ongoing corporate restructuring, where it is moving forward with a demerger plan to split its graphite electrode business from its advanced materials segment. Such a strategic separation often helps companies sharpen their focus on core competencies and unlock shareholder value.

Graphite electrodes are a key component in electric arc furnace steelmaking, a sector where HEG has a long-standing presence. Meanwhile, the advanced materials business, which includes battery-related technologies, is positioned to benefit from the growing emphasis on clean and renewable energy solutions. This order from Indus Towers highlights the potential growth trajectory for HEG’s newer business verticals.

Investors typically view large orders from established clients as positive signals, especially when backed by multi-year execution plans. For HEG and its subsidiary, this contract could support further investments in research and development, capacity expansion, and operational scaling in battery technology.

The telecom industry’s reliance on uninterrupted power supply is critical, particularly in rural and remote areas where grid reliability can be inconsistent. Lithium-ion battery banks help ensure continuous service, reducing downtime and improving network resilience. As telecom operators expand their networks to meet increasing data demands, the need for efficient energy storage solutions is expected to grow.

Overall, this order reflects broader trends in infrastructure modernization, where technology companies are increasingly adopting advanced energy storage systems. HEG’s recent contract win underscores its potential role in supporting these infrastructure upgrades while offering investors a glimpse into the company’s evolving business landscape.