Any current/future new fundraising through debt or equity?

In H1 FY26, HPL has undertaken some capex financed through long-term borrowings, which increased by about ₹60 crore. The focus is on selective capex, primarily for smart switchgear and enhanced metering production. Most of the medium-term capex, especially on the metering front, has been completed. From FY27 onwards, the company expects mainly maintenance capex, indicating no large new capex plans. Any additional cash flows will primarily be used to reduce working capital borrowings and deleverage the balance sheet. There is no specific mention of new fundraising through equity or additional d

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

Capex has been incurred in the first half of the year, primarily for smart switchgear development and selective enhancement of metering production. Medium-term capacities, especially for metering, are mostly set, with major capex largely completed. From FY27 onwards, capex is expected to be mainly for maintenance rather than expansion. The company plans to continue selective investments in brand, products, and capabilities to sustain growth. Investment in the HPL brand is ongoing, with about 2% of C&I sales spent on advertising and promotion in H1 FY26, with plans to increase this in H2 FY26.

Future growth expectations in sales/revenue/volumes?

Strong double-digit growth expected in Consumer & Industrial (C&I) segment, with wires and cables growing ~25–30% recently. Aim to double the C&I business over the next 2–3 years, supported by channel expansion and brand investments. Smart metering segment has a strong medium- to long-term growth story with confirmed order books and healthy inquiry pipelines. Industry-wide smart meter execution expected to accelerate over the next 2–3 years, with potential to reach 20+ crore meters installed by 2028. H2 FY26 projected to be stronger than H1, with Q3 improving over Q2 and Q4 being execution-hea

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

Consumer & Industrial (C&I) segment aims to double in the next 3 years with strong double-digit growth, supported by wires, cables, switchgear, lighting, and fan products. Smart metering business expected to see significant growth in H2 FY26 and beyond, with order book of over ₹3,300 crore largely comprising smart meters and multi-year visibility. EBIT margins in metering improved to ~17.5%; sustaining or improving margins depends on volume, product mix, and procurement efficiency. C&I margins currently around 11–12% with potential improvement as volumes rise, driven by premiumisation an

Current/ Expected Orderbook/ Pending Orders?

Current unexecuted order book for smart meters is around ₹3,300 crore. (Page 23) Order book is well spread across AMISPs, with no single state contributing a material majority. (Page 15) Orders are generally structured over 2.5–3 years, with many deliveries scheduled for FY27 and FY28. (Page 24) Confirmed schedules received from AMISPs indicate strong order flow, although some deliveries experienced short-term postponements. (Pages 17, 26) Additional incremental orders are coming in beyond the current ₹3,300 crore order book, although some are not publicly disclosed due to business reasons. (P

IN US

Sale is live|00:00:00left today

HPL Electric & Power LtdQ3 FY25Industrial Manufacturing

HPL Electric & Power Ltd Q3 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

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Strong double-digit growth expected in Consumer & Industrial (C&I) segment, with wires and cables growing ~25–30% recently.
→Aim to double the C&I business over the next 2–3 years, supported by channel expansion and brand investments.
→Smart metering segment has a strong medium- to long-term growth story with confirmed order books and healthy inquiry pipelines.
→Industry-wide smart meter execution expected to accelerate over the next 2–3 years, with potential to reach 20+ crore meters installed by 2028.
→H2 FY26 projected to be stronger than H1, with Q3 improving over Q2 and Q4 being execution-heavy for smart meters.
→Both metering and C&I segments expected to contribute equally to growth over the next 3–5 years.
→Growth backed by ongoing investments in R&D, brand building, and manufacturing capacities.
→Overall revenue likely to reach close to ₹2,000 crore in FY26, driven by ramp-up in smart metering and C&I sales.

Margin guidance

Category 3

→Consumer & Industrial (C&I) segment aims to double in the next 3 years with strong double-digit growth, supported by wires, cables, switchgear, lighting, and fan products.
→Smart metering business expected to see significant growth in H2 FY26 and beyond, with order book of over ₹3,300 crore largely comprising smart meters and multi-year visibility.
→EBIT margins in metering improved to ~17.5%; sustaining or improving margins depends on volume, product mix, and procurement efficiency.
→C&I margins currently around 11–12% with potential improvement as volumes rise, driven by premiumisation and new product launches.
→Operating cash flows expected to improve in H2 with reduced inventory and better receivable days; excess cash flows likely used for debt reduction.
→Overall, HPL expects sustainable and profitable growth, driven by structural tailwinds in electrification, urbanisation, and digitisation over the medium to long term.

3 more insights locked — sign up free to unlock

Fundraise plans

→In H1 FY26, HPL has undertaken some capex financed through long-term borrowings, which increased by about ₹60 crore.
→The focus is on selective capex, primarily for smart switchgear and enhanced metering production.
→Most of the medium-term capex, especially on the metering front, has been completed.
→From FY27 onwards, the company expects mainly maintenance capex, indicating no large new capex plans.
→Any additional cash flows will primarily be used to reduce working capital borrowings and deleverage the balance sheet.
→There is no specific mention of new fundraising through equity or additional debt planned in the near future.
→The company's priority remains disciplined capital deployment and maintaining a healthy balance sheet.

Order book

Yes

→Current unexecuted order book for smart meters is around ₹3,300 crore. (Page 23)
→Order book is well spread across AMISPs, with no single state contributing a material majority. (Page 15)
→Orders are generally structured over 2.5–3 years, with many deliveries scheduled for FY27 and FY28. (Page 24)
→Confirmed schedules received from AMISPs indicate strong order flow, although some deliveries experienced short-term postponements. (Pages 17, 26)
→Additional incremental orders are coming in beyond the current ₹3,300 crore order book, although some are not publicly disclosed due to business reasons. (Page 6)
→On Consumer & Industrial segment, revenue was ₹384 crore in H1 FY26 with optimistic growth projections and expansion in capacity to meet demand. (Page 19)
→Overall, the order pipeline and bidding pipeline remain strong across smart metering and C&I segments. (Pages 6, 23)

Capex plans

Yes

→Capex has been incurred in the first half of the year, primarily for smart switchgear development and selective enhancement of metering production.
→Medium-term capacities, especially for metering, are mostly set, with major capex largely completed.
→From FY27 onwards, capex is expected to be mainly for maintenance rather than expansion.
→The company plans to continue selective investments in brand, products, and capabilities to sustain growth.
→Investment in the HPL brand is ongoing, with about 2% of C&I sales spent on advertising and promotion in H1 FY26, with plans to increase this in H2 FY26.
→No current plans for entering new product categories like manufacturing solar panels, though the company is studying potential complementarities for future consideration.

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

Pro feature

1HPL Electric & Power Ltd

Rev 2Mar 3

See full Industrial Manufacturing sector rankings

Want more stocks like HPL Electric & Power Ltd?

Build an AI portfolio filtered by sector, market cap, and growth rank. Takes 2 minutes.

Build my portfolio