Any current/future new fundraising through debt or equity?

HPL Electric & Power Limited plans to fund upcoming CapEx mainly through internal accruals and some long-term debt. There is no mention of any planned equity dilution or fundraising through equity. Incremental debt, if any, will primarily be for CapEx purposes. The company has no expectations of a material increase in working capital borrowings in FY26 despite higher revenues. Credit rating upgrades have helped renegotiate borrowing rates, potentially lowering finance costs. The firm is actively working to improve its credit rating further, which could aid in reducing borrowing costs going for

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

FY25 CapEx was slightly over ₹70 crore, higher due to capacity additions for smart metering. Planned CapEx for FY26 is around ₹100 crore, including maintenance and growth investments. Growth CapEx will focus on smart metering (mainly automation), switchgear (industrial and domestic), and wires and cables. Maintenance CapEx will support tool-and-die infrastructure across product lines. Current smart meter manufacturing capacity is modular and scalable with a 3-4 month lead time for expansion, sufficient for the next 3-4 quarters. Additional CapEx planned to deepen factory automation t

Future growth expectations in sales/revenue/volumes?

Smart meter sales have nearly doubled over the last two years, driven by the smart meter portfolio and semi-automated lines, and the company is well-positioned to double sales again in the next 2-3 years through fully automated infrastructure (Page 20). FY25 recorded highest quarterly revenue at ₹493 crore with strong growth; FY26 expected to maintain strong double-digit growth in revenues, targeting over ₹1,000 crore execution from current order book (Pages 4 & 19). Average quarterly revenue run-rate of around ₹500 crore from smart meters achievable over next four quarters, with broad-based

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

HPL anticipates continued strong revenue momentum, with an average quarterly run-rate of ₹500 crore achievable over the next four quarters, driven by smart meter rollouts and other segments. EBITDA margins, especially in the smart metering segment, are expected to remain stable around 17–18%, with potential minor upside. Operating leverage from higher volumes and increasing automation is expected to support margin stability and improvement through FY26. Profit after tax margins are expected to sustain or improve slightly, backed by scale, process efficiencies, and innovation. EPS growth is sup

Current/ Expected Orderbook/ Pending Orders?

HPL currently holds a smart meter order book of approximately ₹3,500 crore, primarily comprising AMISP-led smart meter projects. Execution schedules vary across different AMI SP programs, with staggered rollouts over about 1.5 years per order after an initial lag phase. Over ₹1,000 crore worth of orders are expected to be executed in FY26. Orders are released in tranches based on delivery timelines, integration success, and execution performance. The company anticipates continued momentum in smart meter order inflows, expecting to onboard 2-3 additional AMISPs soon. A significant por

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HPL Electric & Power LtdQ1 FY25Industrial Manufacturing

HPL Electric & Power Ltd Q1 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 3

Margin

Category 3

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Smart meter sales have nearly doubled over the last two years, driven by the smart meter portfolio and semi-automated lines, and the company is well-positioned to double sales again in the next 2-3 years through fully automated infrastructure (Page 20).
→FY25 recorded highest quarterly revenue at ₹493 crore with strong growth; FY26 expected to maintain strong double-digit growth in revenues, targeting over ₹1,000 crore execution from current order book (Pages 4 & 19).
→Average quarterly revenue run-rate of around ₹500 crore from smart meters achievable over next four quarters, with broad-based state-wise deployment and ongoing order inflows (Page 13).
→Expansion into new product categories like fans, expecting meaningful growth and pan-India presence by next summer (Pages 12 & 14).
→CapEx planned at around ₹100 crore in FY26 focused on automation and growth in metering, switchgear, and wires & cables segments to support volume scaling (Page 6).

Margin guidance

Category 3

→HPL anticipates continued strong revenue momentum, with an average quarterly run-rate of ₹500 crore achievable over the next four quarters, driven by smart meter rollouts and other segments.
→EBITDA margins, especially in the smart metering segment, are expected to remain stable around 17–18%, with potential minor upside.
→Operating leverage from higher volumes and increasing automation is expected to support margin stability and improvement through FY26.
→Profit after tax margins are expected to sustain or improve slightly, backed by scale, process efficiencies, and innovation.
→EPS growth is supported by operational scale-up, better cost control, and ongoing automation investments.
→The company’s strategy includes rapid scaling in smart meters, expansion in wires and cables, switchgear, lighting, and new products like fans, further driving profits.
→CapEx of around ₹100 crore in FY26 will focus on automation and growth, funded mainly through internal accruals and some debt, supporting sustained earnings expansion.

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Fundraise plans

Yes

→HPL Electric & Power Limited plans to fund upcoming CapEx mainly through internal accruals and some long-term debt.
→There is no mention of any planned equity dilution or fundraising through equity.
→Incremental debt, if any, will primarily be for CapEx purposes.
→The company has no expectations of a material increase in working capital borrowings in FY26 despite higher revenues.
→Credit rating upgrades have helped renegotiate borrowing rates, potentially lowering finance costs.
→The firm is actively working to improve its credit rating further, which could aid in reducing borrowing costs going forward.

Order book

Yes

→HPL currently holds a smart meter order book of approximately ₹3,500 crore, primarily comprising AMISP-led smart meter projects.
→Execution schedules vary across different AMI SP programs, with staggered rollouts over about 1.5 years per order after an initial lag phase.
→Over ₹1,000 crore worth of orders are expected to be executed in FY26.
→Orders are released in tranches based on delivery timelines, integration success, and execution performance.
→The company anticipates continued momentum in smart meter order inflows, expecting to onboard 2-3 additional AMISPs soon.
→A significant portion of future orders will be repeat orders, reflecting long-term customer relationships.
→Market rollout momentum continues strongly, with a recent national deployment crossing 100,000 meters per day, indicating robust demand and execution progress.

Capex plans

Yes

→FY25 CapEx was slightly over ₹70 crore, higher due to capacity additions for smart metering.
→Planned CapEx for FY26 is around ₹100 crore, including maintenance and growth investments.
→Growth CapEx will focus on smart metering (mainly automation), switchgear (industrial and domestic), and wires and cables.
→Maintenance CapEx will support tool-and-die infrastructure across product lines.
→Current smart meter manufacturing capacity is modular and scalable with a 3-4 month lead time for expansion, sufficient for the next 3-4 quarters.
→Additional CapEx planned to deepen factory automation to protect margins and ensure quality at scale.
→Future category expansions planned within wires and cables, details to be provided as initiatives finalise.
→CapEx primarily funded through internal accruals and some long-term debt; no equity dilution anticipated.

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