HPL Electric & Power Limited

HPL Electric & Power Limited achieved a significant milestone in FY26, with revenue crossing ₹1,800 crores. The fourth quarter of FY26 was particularly strong, marking the first time Q4 revenue exceeded ₹500 crores. This growth was accompanied by an increase in EBITDA ahead of revenue and improved gross margins, although reported PAT reflected higher depreciation from recent capacity additions.

The company's strategy of operating with two distinct growth engines—smart metering (B2B) and consumer & industrial (C&I) (B2C)—is proving effective. Smart metering provides scale and visibility with a robust order book, while C&I offers resilience, market reach, and faster business cycles. This balanced approach makes HPL a more diversified and dependable business, positioning it for aggressive growth in the coming years across both segments.

The C&I segment delivered a strong performance in FY26, with revenue growing 26% to ₹784 crores, increasing its share of total revenue to 43%. Q4 FY26 was the strongest C&I quarter on record, reaching ₹214 crores. This growth was primarily volume-led, driven by enhanced internal execution, broader channel engagement, and an expanded product basket. The wires and cables category was a standout performer, growing 50% to ₹340 crores in FY26, with over 80% growth in Q4.

The smart metering segment continues to be a major growth engine, with an order book exceeding ₹3,200 crores as of May 22, 2026, with over 97% attributed to metering. Management noted that 7 crore smart meters have been installed out of an initial sanction of 22 crores, with the government extending the installation target to 2028. The company is a preferred vendor for almost all AMISPs, indicating strong market position and future order conversion potential. Total smart meter requirements are anticipated to reach 31-32 crores.

HPL has strategically entered the smart water meter segment with Neeram Pulse, leveraging its metering R&D and communication technology. The company expects to see marginal revenues from this product starting in the second half of FY27, with meaningful revenues projected within the next 1-2 years. This initiative positions HPL early in a long-duration opportunity alongside electricity metering, expanding its addressable market.

The company undertook substantial capex in the previous year, primarily for metering and other segments. For the current year, capex is expected to focus mainly on maintenance. Management indicated that debt levels are expected to remain stable despite revenue growth, as sufficient capex has been completed. A promoter pledge of 2.42% by one entity is expected to reduce in the coming quarters^⏳ and is not related to capex.