Current/ Expected Orderbook/ Pending Orders?

Current order book stands at over INR 3,400 crores as of February 10, 2025. Approximately 95% of the order book is related to metering products. Of the metering orders, 99% are specifically for smart meters, totaling around INR 3,000+ crores. The order book covers about two to two-and-a-half years of anticipated demand. Additional orders are expected as HPL Electric delivers on existing commitments. AMISP clients are ramping up execution, which should lead to higher order uptake moving forward.

Any current/future new fundraising through debt or equity?

HPL Electric & Power Limited has not indicated any plans for new fundraising through debt or equity in the immediate future. Most of their recent CapEx, particularly for expanding smart meter production and automation, has been funded through internal accruals rather than new debt. Debt levels have remained stable or slightly decreased from April to date, with a current debt-to-equity ratio of 0.69 and an aim to improve this ratio further. The company expects that as revenues grow, absolute debt may not be reduced drastically but key financial ratios will improve. They anticipate borro

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

Significant investments made in the last two years to automate smart meter production, including plastic component manufacturing and electronic PCB assembly. Recently inaugurated the fourth automated manufacturing line, plus another line for subsidiary Himachal Energy. Current smart meter manufacturing capacity adequate for next 12–15 months; expansion plans under review. Considering expansion in LT power and control cables segments due to strong 25% growth. Most existing capital expenditure funded via internal accruals; no significant new debt planned. Automation investments aimed at improvin

Future growth expectations in sales/revenue/volumes?

Strong growth expected driven by increased smart meter orders from AMISPs, with the current order book covering 2 to 2.5 years of demand. Conservative revenue growth estimate for FY26 is around 25–30%; potential for higher growth (40–50%) as higher-priced smart meters contribute more. Anticipated better execution and meter offtake in Q4 FY25, assuming resolution of ground-level challenges. Capacity utilization is currently at 70–80% with annual capacity of ~1.1 crore meters; expected to scale to 100% via extra shifts or streamlined operations. Segments like switchgear (+21% growth) and wires &

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

Expectation of strong revenue growth, potentially around 25–30% in FY26, driven by increased smart meter orders from AMISPs. Q4 FY25 anticipated to show better execution and higher meter offtake, improving revenues. Profit after tax (PAT) increased 51% YoY in Q3 and 89% over nine months, reflecting operational efficiency gains. EBITDA rose 12% in Q3 and 26% over nine months; sustainable 14% overall margin with potential incremental gains. Smart meters segment maintains ~16% EBITDA margin; C&I margins targeted to rise to 11–12%. Improved debt-to-equity ratio aims to enhance financial

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HPL Electric & Power LtdQ4 FY26Industrial Manufacturing

HPL Electric & Power Ltd Q4 FY26 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

→Strong growth expected driven by increased smart meter orders from AMISPs, with the current order book covering 2 to 2.5 years of demand.
→Conservative revenue growth estimate for FY26 is around 25–30%; potential for higher growth (40–50%) as higher-priced smart meters contribute more.
→Anticipated better execution and meter offtake in Q4 FY25, assuming resolution of ground-level challenges.
→Capacity utilization is currently at 70–80% with annual capacity of ~1.1 crore meters; expected to scale to 100% via extra shifts or streamlined operations.
→Segments like switchgear (+21% growth) and wires & cables (+25% growth) showing strong momentum.
→Lighting segment recovering, fans launched recently with expected sizable growth in 18 months.
→Overall, the C&I business is expected to continue double-digit growth, supported by product expansion and distribution network growth.

Margin guidance

Category 3

→Expectation of strong revenue growth, potentially around 25–30% in FY26, driven by increased smart meter orders from AMISPs.
→Q4 FY25 anticipated to show better execution and higher meter offtake, improving revenues.
→Profit after tax (PAT) increased 51% YoY in Q3 and 89% over nine months, reflecting operational efficiency gains.
→EBITDA rose 12% in Q3 and 26% over nine months; sustainable 14% overall margin with potential incremental gains.
→Smart meters segment maintains ~16% EBITDA margin; C&I margins targeted to rise to 11–12%.
→Improved debt-to-equity ratio aims to enhance financial stability and reduce borrowing costs.
→EPS rose to 8.81 for nine months FY25 from 4.64 prior year, signaling strong earnings momentum.
→Continued focus on automation, efficiency, and better product mix expected to improve ROE and ROC over next two years.

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Fundraise plans

→HPL Electric & Power Limited has not indicated any plans for new fundraising through debt or equity in the immediate future.
→Most of their recent CapEx, particularly for expanding smart meter production and automation, has been funded through internal accruals rather than new debt.
→Debt levels have remained stable or slightly decreased from April to date, with a current debt-to-equity ratio of 0.69 and an aim to improve this ratio further.
→The company expects that as revenues grow, absolute debt may not be reduced drastically but key financial ratios will improve.
→They anticipate borrowing costs to decrease further due to improved credit rating and possible macro-level interest rate reductions in the next 18 months.
→No explicit mention was made of plans for equity fundraising or additional debt issuance during the discussed period.

Order book

→Current order book stands at over INR 3,400 crores as of February 10, 2025.
→Approximately 95% of the order book is related to metering products.
→Of the metering orders, 99% are specifically for smart meters, totaling around INR 3,000+ crores.
→The order book covers about two to two-and-a-half years of anticipated demand.
→Additional orders are expected as HPL Electric delivers on existing commitments.
→AMISP clients are ramping up execution, which should lead to higher order uptake moving forward.

Capex plans

Yes

→Significant investments made in the last two years to automate smart meter production, including plastic component manufacturing and electronic PCB assembly.
→Recently inaugurated the fourth automated manufacturing line, plus another line for subsidiary Himachal Energy.
→Current smart meter manufacturing capacity adequate for next 12–15 months; expansion plans under review.
→Considering expansion in LT power and control cables segments due to strong 25% growth.
→Most existing capital expenditure funded via internal accruals; no significant new debt planned.
→Automation investments aimed at improving output consistency, reducing manpower, and driving efficiency.
→Export market expansion efforts ongoing but currently focused on domestic demand; certification processes for exports expected to take 18–24 months.
→Product expansion beyond metering includes growing presence in switchgear, wires and cables, fans, and lighting segments.

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

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