HPL Electric & Power Limited — Q3 FY26 earnings call

Call held 9 Feb 2026

Management summary

HPL Electric reported a strong Q3 FY26, driven by robust performance in both smart metering and consumer & industrial segments. Revenue and EBITDA saw significant year-on-year growth, supported by a substantial order book in smart metering and strong execution. The company is strategically expanding into new areas like smart water meters and exports, while also focusing on digital transformation and channel network expansion to sustain future growth.

Highlights

  • Q3 FY26 Revenue grew by approximately 21% year-on-year to ₹475 crores.

  • EBITDA increased by about 29% year-on-year to nearly ₹72 crores.

  • Smart metering order book stands at over ₹3,000 crores, providing multi-year visibility.

  • Smart metering deliveries increased by around 25% sequentially and 11% year-on-year in Q3.

  • Switchgear segment grew over 33% year-on-year in Q3 to roughly ₹68 crores.

  • Wire and Cables segment recorded strong growth of nearly 60% year-on-year in Q3.

  • Consumer and Industrial (C&I) business is targeted to cross ₹1,000 crores in revenue next year (FY27).

  • Company aims for 25% topline growth for FY27 from FY26.

Key financials

  1. Revenue ₹475 Cr +21%YoY
  2. EBITDA ₹72 Cr +29%YoY

What they filed

Q1 FY27: revenue up 34.5%, net profit up 5.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue422 392 493 383 434 +3%474 +21%520 +5%515 +34%
EBITDA61 56 82 58 66 +8%72 +29%86 +5%63 +9%
Net profit22 18 37 18 22 +0%20 +11%31 −16%19 +6%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Smart Metering
    ₹3,000 Cr Order Book25% Q3 Deliveries Growth (Sequential)11% Q3 Deliveries Growth (YoY)
  • Consumer and Industrial
    ₹68 Cr Switchgear Q3 Revenue33% Switchgear Q3 YoY Growth₹233 Cr Switchgear 9M Revenue25% Switchgear 9M Growth60% Wire and Cables Q3 YoY Growth20% Lighting and Electronics Q3 Growth

Guidance & targets

Business Growth

  • C&I Business Growth Business Growth · next 3 to 4 years · High confidence more than double
    the consumer and industrial business provides a strong growth momentum that we believe can more than double over the next 3 to 4 years.

    — Mr. Gautam Seth, Joint Managing Director & CFO

Revenue

  • Q4 FY26 Revenue Revenue · Q4 FY26 · Medium confidence much stronger quarter
    So in terms of revenue, I won't give a specific number but definitely we look at a much stronger quarter coming into the Q4.

    — Mr. Gautam Seth, Joint Managing Director & CFO

  • Q4 FY26 Revenue Growth (vs Q4 FY25) Revenue · Q4 FY26 · Medium confidence growth from there

    From 500 crores (Q4 FY25) today

    I think we should see a growth from there. Now what growth, I cannot say that, but yes I think we are looking at it internally, we do have strong targets, our teams are working day and night to make sure that the best figures are there but yeah I think we should have a growth from there.

    — Mr. Gautam Seth, Joint Managing Director & CFO

Smart Metering Execution

  • Smart Meter Execution (Industry) Smart Metering Execution · next two to three years · Medium confidence at least 5 cr meters
    I think that seems to be a possibility of having at least 5 cr meters being implemented.

    — Mr. Gautam Seth, Joint Managing Director & CFO

Overall Topline Growth

  • Topline Growth Overall Topline Growth · FY27 from FY26 · High confidence 25%
    Yes. I think it is achievable and internally when probably by next month when we are finalizing our budget for the next year internally with our teams I think that is something that should be minimum required. Keeping few challenges which would anyway come in the business, I think those types of growths are achievable. No doubt in that.

    — Mr. Gautam Seth, Joint Managing Director & CFO

C&I Revenue

  • C&I Revenue C&I Revenue · next year · High confidence crossing let's say thousand crores
    but I think the C&I next year we should be looking at probably crossing let's say thousand crores in a way or coming close to that.

    — Mr. Gautam Seth, Joint Managing Director & CFO

Product Launch

  • New Apps Product Launch · coming months · High confidence two three new apps
    We are looking to launch two three new apps in the coming months which would connect all our dealers, all our retailers and a lot of our electricians including the loyalty programs of electricians through the app and everything going digitally through the QR codes.

    — Mr. Gautam Seth, Joint Managing Director & CFO

Water Metering Revenue

  • Water Metering Revenue Contribution Water Metering Revenue · second half of next year · Low confidence start seeing something
    So in terms of revenue we should start seeing something probably in the second half of next year because there are approval processes and others, but we have already initiated those.

    — Mr. Gautam Seth, Joint Managing Director & CFO

Risks & concerns

  • Raw Material Price Volatility (Copper)

    medium

    Copper price increases cause margin pressure, especially in wire/cable and switchgear, but HPL passes on costs with a lag (2-3 weeks for wire/cable, 3-6 months for switchgear).

    Analyst acknowledged

  • Smart Metering Execution Delays

    medium

    Past challenges in smart metering execution were mainly due to AMISP-faced issues like monsoon and skilled manpower, but these are being addressed and overcome.

    Management acknowledged

  • Reduced Transparency on Order Book

    medium

    HPL has stopped disclosing new order book details in stock exchanges to maintain confidentiality due to competitive interference, which may reduce investor visibility.

    Management acknowledged

Areas of evasion (3)

  • Specific Q4 FY26 revenue number
  • Exact revenue contribution from water meters in the near term
  • Detailed breakdown of HPL's share of the 15cr meters awarded

Q&A highlights

3 direct
Smart Metering Order Book Disclosure & Tendering Activity Direct
So if you see in the last couple of months we as HPL electric we have not been giving out the new order book in the stock exchanges because of the competitive interference what we can find and so just to keep those confidentiality on the further details and the customer name so we have not been giving out.

Reveals a change in the company's disclosure policy regarding new order book details due to competitive reasons, impacting investor visibility into future revenue streams.

Asked by Chandresh Malpani

Gross Margin Pressure from Copper Prices Direct
So the smart metering part is not actually affected so much by the copper prices. This is one. Second, if you look at it, yes, the prices get passed on. So any increase in the cost is getting passed on to the consumer but with a lag... So the maximum impact would happen in the wire and cable where typically it takes two to three weeks to pass on the cost to the consumer.

Clarifies the impact of raw material costs on different business segments and the company's strategy and timeline for passing on price increases, which is crucial for understanding margin stability.

Asked by Viraj Mahadevia

Diversification into EHV Cables and Next-Gen Products (Solar) Direct
We have been studying the market to go into the higher kind of cables going up to HT and then EHV... we already have a solar division. If you look at the top 10 solar companies who are doing big projects, we are already supplying to them. We have a very strong solar product portfolio starting with solar cables.

Highlights the company's strategic plans for expanding its product portfolio into higher-value segments like EHV cables and leveraging existing capabilities in the growing solar market, indicating future growth drivers and diversification.

Asked by Rishab Hingre

2 min read 7 chapters

Detailed narrative

Q3 FY26 Performance Overview

HPL Electric reported a robust Q3 FY26, with revenue growing by approximately 21% year-on-year to ₹475 crores. EBITDA saw an even stronger increase of about 29% to nearly ₹72 crores, indicating improved profitability. This performance was driven by a strong B2B order pipeline and scaling of branded consumer and industrial businesses, strengthening the company's earnings profile quarter after quarter.

Smart Metering Business Outlook

Smart metering continues to be a long-term growth driver for HPL, backed by an order book exceeding ₹3,000 crores, which provides clear multi-year visibility. In Q3, execution picked up meaningfully, with deliveries increasing by around 25% sequentially and 11% year-on-year. Management anticipates the industry will implement at least 5 crore smart meters over the next 2-3 years, and HPL is confident in its supply capabilities to meet this demand.

Consumer & Industrial Segment Growth

The Consumer and Industrial (C&I) business is steadily becoming a second core growth pillar. In Q3, Switchgear grew over 33% year-on-year to roughly ₹68 crores, while Wire and Cables recorded strong growth of nearly 60% year-on-year. Lighting and Electronics also returned to growth at around 20%. Management projects the C&I segment to cross ₹1,000 crores in revenue next year (FY27) and expects it to more than double over the next 3 to 4 years.

New Growth Avenues: Water Metering & Exports

HPL has strategically launched NRAM plus smart water meters, expanding its metering platform into water infrastructure, which is identified as a 'huge segment.' While revenue contribution is expected to start in the second half of next year after trials and approvals, global opportunities are also being explored. The company is actively pursuing international certifications and aims to penetrate global markets, particularly in Europe and the Middle East, leveraging India's quality advantage and FTA benefits.

Go-to-Market Strategy & Digital Transformation

The company has significantly strengthened its distribution network, now operating with over 900 authorized dealers and more than 85,000 retailers. HPL has increased its digital marketing spend by 2-3x and plans to launch 2-3 new apps in the coming months. These apps will digitally connect dealers, retailers, and electricians, aiming to improve reach, conversions, and build repeat demand across markets.

Raw Material Impact & Margin Management

Management acknowledged the pressure on gross margins due to volatility in raw material prices, particularly copper, which impacts the C&I business, especially wire/cable and switchgear. However, they clarified that price increases are typically passed on to consumers with a lag of 2-3 weeks for wire/cable and 3-6 months for switchgear, indicating a mechanism to mitigate long-term margin erosion.

FY27 Topline Growth Target

HPL Electric expressed high confidence in achieving a 25% topline growth for FY27 from FY26. Management stated this target is considered a 'minimum required' during internal budget finalization, reflecting their strong conviction in the sustained momentum across both the smart metering and consumer & industrial segments, despite potential business challenges.

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