Any current/future new fundraising through debt or equity?

No explicit mention of any new fundraising through debt or equity during the call. Current debt-equity ratio is comfortable at 0.69, and borrowings have reduced over the last 12 months as a conscious decision. Over the last four years, turnover has nearly doubled with only marginal debt increase. Two recent rating upgrades have reduced borrowing costs, positively impacting future financials. The company expects this trend of stable or reducing debt to continue over the next 2-3 years. Focus appears on managing existing debt efficiently rather than raising new debt or equity currently

Any current/future capex/capital investment/strategic investment?

HPL has made recent investments in R&D and automation, including a new R&D center at Kundli focused on switchgear and lighting. Automation upgrades in metering production lines (fully/semi-automated) are underway to improve efficiency and accuracy. A new large automated production line for MCBs is expected by end of Q3, enhancing efficiency and precision. The company is focusing on backward integration for critical smart metering components, expanding in-house manufacturing. Expansion plans include broadening the wire and cables portfolio into LT power cables to strengthen presence in African

Future growth expectations in sales/revenue/volumes?

Metering business expected to remain the biggest growth driver with an order book over ₹3,000 crore, supporting steady visibility and growth momentum (Page 16). Smart meter volumes to grow steadily; capacity is about 1 million meters per month, enabling significant expansion (Page 10). Consumer & Industrial (C&I) segment projected to cross ₹1,000 crore in revenues by FY28, indicating strong growth in wires, cables, switchgear, lighting, and new product lines like fans (Page 9). Wires and cables segment has achieved ~25% annual growth over 2.5 years, expected to continue expanding product range

Future growth expectations in earnings/operating earnings/profits/EPS?

Expecting strong medium- to long-term growth mainly driven by the metering business with a 5–10 year horizon. Smart meter order books exceed ₹3,000 crore, supporting steady growth momentum. Consumer & Industrial (C&I) segment showing robust growth: 16% revenue growth and 23% EBIT growth with margins crossing 11%. Wires and cables segment growing at around 25-35% annually, with continued expansion expected. Margins have improved due to a better product mix, design improvements, centralized procurement, and volume-related vendor leverage. EBITDA margin expansion and PAT growth seen rec

Current/ Expected Orderbook/ Pending Orders?

Current smart meter order book is over ₹3,000 crore as of August 13, 2025. Earlier, on May 22, 2025, order book was over ₹3,500 crore, implying deliveries worth around ₹250+ crore executed in Q2 so far. Significant pipeline of pending orders exists, driven by allocation from AMISPs following state-level tenders. Around 17 crore smart meter orders have been issued against a target of 25 crore; 8 crore meters yet to be allocated to AMISPs. Discussions ongoing with new AMISPs not previously sourcing from HPL, indicating fresh business opportunities. Order flow is steady with negotiations for new

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HPL Electric & Power LtdQ2 FY25Industrial Manufacturing

HPL Electric & Power Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹380P/E: 22.1Market Cap: ₹2.2K CrSector: Industrial Manufacturing

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

→Metering business expected to remain the biggest growth driver with an order book over ₹3,000 crore, supporting steady visibility and growth momentum (Page 16).
→Smart meter volumes to grow steadily; capacity is about 1 million meters per month, enabling significant expansion (Page 10).
→Consumer & Industrial (C&I) segment projected to cross ₹1,000 crore in revenues by FY28, indicating strong growth in wires, cables, switchgear, lighting, and new product lines like fans (Page 9).
→Wires and cables segment has achieved ~25% annual growth over 2.5 years, expected to continue expanding product range and markets including Africa (Pages 8-10).
→Post initial large-scale meter installations, replacement and upgrade cycles in metering expected to sustain long-term demand beyond 5-7 years (Page 8).
→International expansion and new AMISP client acquisitions expected to fuel growth over next 2-3 years (Pages 6, 12).

Margin guidance

Category 3

→Expecting strong medium- to long-term growth mainly driven by the metering business with a 5–10 year horizon.
→Smart meter order books exceed ₹3,000 crore, supporting steady growth momentum.
→Consumer & Industrial (C&I) segment showing robust growth: 16% revenue growth and 23% EBIT growth with margins crossing 11%.
→Wires and cables segment growing at around 25-35% annually, with continued expansion expected.
→Margins have improved due to a better product mix, design improvements, centralized procurement, and volume-related vendor leverage.
→EBITDA margin expansion and PAT growth seen recently, e.g., 8.5% PAT increase in Q1FY26.
→Future margin improvement expected from premium product launches and automation benefits.
→Strong cash flow and ROCE improvements driven by better working capital management.
→International expansion initiatives underway, expected to contribute to growth over the next 2-3 years.
→Overall confidence in sustaining and enhancing profits alongside sales growth in the coming years.

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Fundraise plans

→No explicit mention of any new fundraising through debt or equity during the call.
→Current debt-equity ratio is comfortable at 0.69, and borrowings have reduced over the last 12 months as a conscious decision.
→Over the last four years, turnover has nearly doubled with only marginal debt increase.
→Two recent rating upgrades have reduced borrowing costs, positively impacting future financials.
→The company expects this trend of stable or reducing debt to continue over the next 2-3 years.
→Focus appears on managing existing debt efficiently rather than raising new debt or equity currently.

Order book

→Current smart meter order book is over ₹3,000 crore as of August 13, 2025.
→Earlier, on May 22, 2025, order book was over ₹3,500 crore, implying deliveries worth around ₹250+ crore executed in Q2 so far.
→Significant pipeline of pending orders exists, driven by allocation from AMISPs following state-level tenders.
→Around 17 crore smart meter orders have been issued against a target of 25 crore; 8 crore meters yet to be allocated to AMISPs.
→Discussions ongoing with new AMISPs not previously sourcing from HPL, indicating fresh business opportunities.
→Order flow is steady with negotiations for new circles and delivery schedules underway.
→Execution delayed somewhat in Q1 due to monsoons and logistical challenges but improving rapidly with momentum expected in H2 FY26 and beyond.

Capex plans

Yes

→HPL has made recent investments in R&D and automation, including a new R&D center at Kundli focused on switchgear and lighting.
→Automation upgrades in metering production lines (fully/semi-automated) are underway to improve efficiency and accuracy.
→A new large automated production line for MCBs is expected by end of Q3, enhancing efficiency and precision.
→The company is focusing on backward integration for critical smart metering components, expanding in-house manufacturing.
→Expansion plans include broadening the wire and cables portfolio into LT power cables to strengthen presence in African and other export markets.
→Investments are ongoing to meet international certification standards and develop products for global markets.
→R&D and automation are central to sustaining growth, improving product quality, enabling cost optimization, and supporting global expansion efforts.

How does HPL Electric & Power Ltd rank vs peers in Industrial Manufacturing?

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