Graphite India Soars Over 18%; HEG Touches Upper Circuit as GrafTech Hikes Electrode Prices

Graphite electrodes were one of the few gainers in an otherwise poor performance market on September 9, 2026. Graphite India soared over 17%, while HEG Advanced Materials touched its upper circuit of 5% after GrafTech International in the US announced steep price hikes for graphite electrodes. 

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Graphite India rose 17.8% to ₹865 in early trading, becoming the top performer on the BSE Smallcap index. It also featured in the most heavily traded stocks on both NSE and BSE. 

The rally has ensured that Graphite India’s gains in 2026 have reached close to 32%. The Nifty 50 Index, meanwhile, has lost about 10% in the year. The market capitalization of Graphite India was estimated to be around ₹16,700 crore. 

HEG Advanced Materials joined the bandwagon, surging 4.99% to touch its upper circuit at ₹271.50. Its market capitalization was estimated to be about ₹5,233 crore. 

The strength in both stocks came on a difficult morning for the wider market. At 10:15 am, the Sensex was down 606 points, or 0.80%, at 74,971, while the Nifty 50 had fallen 149.5 points, or 0.63%, to 23,485.60. 

What Triggered the Rally? 

The trigger came from GrafTech International, whose shares jumped around 15% on Wall Street overnight after the company announced a minimum 30% increase in graphite electrode prices. 

The revised pricing takes effect immediately for all open commercial negotiations and follows another pricing action announced by GrafTech in March. 

GrafTech attributed the move to the sharp decline in graphite electrode prices over the past three years, even as some raw-material, energy and logistics costs moved higher. 

The company has also recently announced a 51,000-tonne reduction in capacity. 

For Indian graphite electrode makers, the development has brought pricing back into focus. A CNBC-TV18 report cited by Moneycontrol indicated that GrafTech’s move could translate into an increase of around $1,500 per tonne in realisations for Indian graphite electrode manufacturers. 

Graphite India’s Q1 Profit Rises 28% 

The rally also comes after a stronger June quarter for Graphite India. 

The company reported a 28.4% year-on-year increase in net profit to ₹172 crore for the first quarter. Revenue rose 26.6% to ₹842 crore. 

Graphite India has an annual graphite electrode manufacturing capacity of 80,000 tonnes and is the country’s largest producer. It is also currently the only listed pure-play exposure to the graphite electrode business in India. 

HEG’s graphite electrode business, meanwhile, is moving into a separately listed company following the group’s recent demerger. 

The existing listed company, HEG Advanced Materials, houses the advanced materials, battery energy solutions and green power businesses. HEG Graphite will hold the graphite electrode operations and is expected to list separately next month. 

Wednesday’s sharp rally put both stocks firmly in focus, with GrafTech’s pricing decision providing the immediate trigger even as the broader Indian market traded lower.