HPL Electric Q3 Revenue Climbs 21% on Smart Meter & C&I Growth

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AuthorSimar Singh|Published at:
HPL Electric Q3 Revenue Climbs 21% on Smart Meter & C&I Growth
Overview

HPL Electric & Power posted robust Q3 FY2026 results, with revenue climbing 21% YoY to ₹475 Cr and EBITDA soaring 29% to ₹72 Cr. Strong performance in smart metering, bolstered by a ₹3,000 Cr order book, and a rapidly expanding Consumer & Industrial (C&I) business are driving growth. Management targets over 20% topline expansion in FY27 and plans to double the C&I segment revenue by FY27.

HPL Electric & Power: Dual Growth Pillars Propel Q3 Performance

The Numbers

  • Revenue: ₹475 Cr, a 21% year-on-year increase.
  • EBITDA: ₹72 Cr, up 29% year-on-year.
  • EBITDA Margin: Approximately 15.16%, indicating improvement from better margins.
  • Smart Metering Deliveries: Increased by 25% sequentially and 11% year-on-year in Q3.
  • Consumer & Industrial (C&I) Business Highlights:
    • Switchgear: ₹68 Cr, growing over 33% year-on-year in Q3.
    • Wire and Cables: Recorded strong growth of nearly 60% year-on-year in Q3.
    • Lighting and Electronics: Returned to growth at around 20% year-on-year in Q3.

The Quality of Earnings

Steady revenue growth coupled with better margins is enhancing the company's earnings profile. Management is focused on improving earnings quality through a refined product mix, business differentiation, and disciplined execution. However, increases in copper and other metal prices primarily impact the C&I business, with costs passed on with a lag (2-3 weeks for W&C, 3-6 months for switchgear), leading to temporary margin pressure.

Guidance & Strategy

HPL Electric is strategically building on two key growth pillars: smart metering and C&I.

  • Smart Metering: The division maintains a significant order book exceeding ₹3,000 Cr, offering multi-year revenue visibility. Execution saw substantial improvement in Q3.
  • C&I Business: Positioned as a second core growth engine, it is targeted to more than double revenue in 3-4 years, with a specific goal of crossing ₹1,000 Cr in FY2027.
  • Product Development: The company launched the NRAM plus smart water meter, entering the water infrastructure market. It is also evaluating expansion into higher voltage cables (HT, EHV) and developing new products for solar and 5G applications.
  • Export Opportunities: International markets for smart meters are being explored, with expected certifications within 12 months. Free Trade Agreements (FTAs) with the UK and Europe are viewed positively.

Outlook

Management expressed confidence in achieving 20-25% topline growth in FY27 over FY26. Q4 FY2026 is anticipated to be the strongest quarter for metering supply and installation.

Risks & Forward View

  • Specific Risks: The primary risk lies in margin volatility for the C&I segment due to fluctuating raw material prices, especially metals, and the inherent lag in passing these costs to customers. Execution risks associated with new product launches and entry into export markets also warrant attention.
  • The Forward View: Investors should closely monitor the evolution of C&I margins despite input cost pressures, the company's success in securing new smart meter orders, and the traction gained in export ventures. The substantial smart metering order book provides a solid foundation for revenue visibility.
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