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    HPL Electric & Power Q1 FY27 earnings call

    HPL
    Capital Goods·11 Aug 2026
    Management Summary

    HPL Electric & Power Limited reported a strong Q1 FY27, with revenue growing 35% YoY to ₹515 crores, driven by robust performance in both Consumer and Industrial (C&I) and Smart Metering segments. While EBITDA margins moderated to 12.26% due to raw material inflation and increased manpower costs, the company is implementing mitigation strategies including R&D for alternative materials and price adjustments. A healthy order book of ₹3,200 crores, predominantly from smart metering, provides strong revenue visibility for the next 1.5-2 years, and the company is actively developing new products for high-growth areas like data centers.

    Highlights

    5

    • Strong revenue growth of 35% YoY to ₹515 crores, exceeding ₹500 crore mark despite Q1 being a seasonally light quarter.

    • Consumer and Industrial (C&I) segment delivered highest ever quarterly revenue of ₹278 crores, growing 55% YoY.

    • Smart Metering segment grew 17% YoY to ₹234 crores, providing long-cycle growth and order book visibility.

    • Order book of ₹3,200 crores provides strong medium-term visibility, primarily driven by metering and systems (over 96%).

    • Company is investing in R&D for new products, including specialized cables for data centers, expected by next year.

    Concerns

    3

    • EBITDA margins moderated to 12.26% due to input cost volatility from geopolitical disruptions and changing revenue mix.

    • Raw material inflation, particularly in industrial plastics and metals, impacted margins, with price increases passed on with a time lag.

    • Manpower costs increased significantly (40% minimum wage hike in Haryana) contributing to cost pressures.

    Key financials

    Single quarter

    04 metrics
    1. 01Revenue₹515 Cr+35%YoY
    2. 02EBITDA₹63 Cr+9%YoY
    3. 03EBITDA Margin12.3%
    4. 04PAT₹19 Cr

    Segment breakdown

    • Consumer and Industrial₹278 Cr54.3%
    • Smart Metering₹234 Cr45.7%
    Donut· Share of Revenue

    Order Book

    high confidence

    Total Value

    ₹ 3,200 crores

    as of 2026-08-07

    quantified

    Execution

    Typically one and a half to two years

    Composition

    Metering and Systems(product)
    96.0%

    "The strong order book provides medium-term visibility and allows focus on execution, technology, and service levels."

    Source:
    Prepared remarks

    Capital allocation

    1
    medium confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Guidance & targets

    4
    CategoryTargetPriority
    Revenue
    C&I Revenue Growth
    high double digit growth
    		Medium
    Profitability
    EBITDA Margin
    16-17%
    		Low
    Smart Metering
    Smart Meter 1.0 Lifespan
    6 years
    		Medium
    Smart Metering
    Smart Metering Market Longevity
    10-15 years
    		Medium

    What to watch in Q2 FY27

    4

    EBITDA Margin Improvement

    next couple of quarters
    Current12.26%
    TargetTowards 16-17%

    Why it matters

    Margin recovery is crucial for profitability, especially given current cost pressures and management's conditional target.

    currently the levels what we are I think that would be you know like a baseline right now for us to pursue although efforts are there to increase enhance them further

    Risks & concerns

    3
    RiskSeverity

    Input cost volatility due to geopolitical disruptions

    Raw material prices, especially industrial plastics and metals, increased due to the West Asia conflict, impacting margins. — Management acknowledged

    medium

    Margin pressure from competitive smart metering tenders

    While HPL highlights price increases, the competitive environment and customer focus on cheaper prices can limit full pass-through. — Management acknowledged

    medium

    Increased manpower costs

    A significant 40% increase in minimum wages in Haryana impacted costs, with management focusing on automation and volumes to manage. — Management acknowledged

    medium

    Q&A highlights

    6

    “if you look at the results and more importantly on the margins the way we look at it the the revenue growth has been good. C&I as you know earlier we had talked about also in our last two three the the the momentum on C&I is building to a bigger level and we see the growth going forward. even the smart meter is because last year sequentially we grew four quarters even now from here on also we see the good growth coming in of course more at a matured level but again both these segments are set for a good growth on a revenue point of view. Now when we look at the margins primarily there's a single point like on on the cost of materials that has gone up and that has gone up mainly from February onwards because of the the West Asia conflict the all mostly on the geopolitical issues.”

    Analyst questioned significant gross margin compression (38% to 30%), and management attributed it to geopolitical issues and raw material volatility, outlining mitigation efforts like R&D and price pass-through with a lag.

    asked by Viraj Mahadevia

    2 min read5 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    HPL Electric & Power Limited commenced FY27 with a strong Q1, achieving a revenue from operations of ₹515 crores, marking a 35% year-on-year growth. This represents the highest ever first-quarter revenue for the company, surpassing the ₹500 crore level despite Q1 typically being a seasonally light quarter. EBITDA for the quarter stood at ₹63 crores, with PAT increasing to ₹19 crores. The company's 'two-engine growth model' continues to strengthen, balancing faster-cycle consumer and industrial products with long-cycle smart metering.

    02

    Consumer & Industrial (C&I) Segment Growth Drivers

    The C&I segment delivered its highest ever quarterly revenue of ₹278 crores, growing 55% year-on-year and contributing approximately 54% to the total revenue. This growth is broad-based across various product baskets, with wire and cable revenue growing 79% to ₹146 crores, lighting growing 78%, and industrial switchgear growing 19%. The company's distribution platform, comprising over 900 authorized dealers and 85,000 retailers, is central to this strategy, supported by investments in BTS marketing and a last-mile sales team to expand reach and cross-sell products.

    03

    Smart Metering Outlook & Order Book

    The smart metering and systems segment grew close to 17% year-on-year to ₹234 crores. The company's order book stands at a robust ₹3,200 crores as of August 7, 2026, with metering and systems accounting for over 96% of these orders. This provides strong medium-term visibility, with an execution timeline typically ranging from 1.5 to 2 years. Management expressed confidence in the long-term prospects of the smart metering market, projecting its relevance for 10-15 years, driven by electricity consumption and household usage.

    04

    Margin Pressures & Mitigation Strategies

    EBITDA margins moderated to 12.26% during the quarter, primarily due to input cost volatility, particularly in industrial plastics and metals, exacerbated by geopolitical disruption🌐s from the West Asia conflict. Additionally, a significant 40% increase in minimum wages in Haryana contributed to cost pressures. To mitigate these impacts, HPL is focusing on R&D for alternative materials and design changes, along with passing on price increases, albeit with a time lag. The company also highlighted investments in automation, such as new MCB manufacturing machines, to improve efficiency and manage costs.

    05

    R&D and New Product Initiatives

    HPL is actively investing in R&D across its metering and switchgear divisions. The company is developing new products, including specialized cables for data centers, with international certifications, aiming for a launch by May-June next year. This strategic move targets a high-growth segment expected to see substantial expansion over the next 5-10 years. Furthermore, HPL is working on integrating electronics and communication into existing switchgear, with some projects expected to yield results in the next two to three years.

    This is an AI-generated summary of a publicly available earnings call transcript.