HPL Electric & Power Ltd Management's Take

📊 Strong Q3 FY26 revenue growth of 21% YoY to Rs.473.92 crore; 9M revenue at Rs.1,291.39 crore.
💹 EBITDA increased by 28.76% YoY to Rs.71.73 crore with margin gains of 94 bps; PAT up 7.87% to Rs.19.51 crore.
🔋 Consumer & Industrial segment now 39% of revenue, indicating diversified revenue streams alongside 61% from Metering.
🔗 Credit ratings improved — CRISIL to A, India Ratings at A+/Stable, reflecting enhanced financial strength.
📈 Order book exceeds Rs.3,100 crore, driven by smart meter demand under government RDSS scheme.
💧 Entered smart water meter market with 'Neeram Plus' product and Gurugram facility.
🌍 Exploring international markets and participating in major trade fairs to boost exports.
⚠️ Challenges include raw material price fluctuations, lag in price adjustment, and operational hurdles in smart meter rollouts.

🔍 Financial and Operational Highlights

HPL reported a 21% year-on-year revenue increase in Q3 FY26, reaching Rs.473.92 crore, with nine-month revenues totaling Rs.1,291.39 crore. EBITDA margins improved by 94 basis points to 15.14%, supported by a 28.76% rise in EBITDA to Rs.71.73 crore, while profit after tax grew 7.87% to Rs.19.51 crore.

📊 Segmental Growth Dynamics

The Consumer & Industrial (C&I) segment rose to 39% of total revenue from 34%. Metering contributed 61%.
Wires and cables achieved highest growth at 58% YoY with volume growth over 40%.
Switchgear revenue increased 33% YoY due to rising infrastructure demand.
Lighting and electronics segment rebounded with 19.5% YoY growth.

🏭 Manufacturing and Distribution Expansion

The commissioning of an automated smart meter manufacturing line in Jabli, Himachal Pradesh, underscores capacity expansion. Distribution network now includes over 900 authorized dealers and 85,000 retailers across India.

📈 Robust Order Book and Future Growth

Consolidated order book exceeds Rs.3,100 crore, driven by smart metering opportunities under the RDSS scheme, providing multi-year revenue visibility. The Consumer & Industrial segment is expected to more than double in three to four years with FY27 targeting 20-25% revenue growth.

💧 New Market Entry and Innovation

Launch of 'Neeram Plus' smart water meters and a new manufacturing facility in Gurugram mark entry into water infrastructure market. Advanced tech integration includes 5G and Wirepas RF Mesh in smart meters.

🌐 International Expansion Efforts

Exploration of international markets underway with participation planned at trade fairs in Dubai and Hannover, Germany, aiming to boost exports.

⚠️ Risks and Operational Challenges

Raw material price volatility in copper and silver affects margins.
Delays in price adjustments due to fixed-price contracts create margin pressures.
Execution challenges include monsoon disruptions and skilled labor availability for smart meter rollouts.

💻 Digital Initiatives and R&D Focus

Dedicated R&D team of 100+ engineers focusing on product development to maintain competitive edge. Digital transformation includes new mobile applications for dealers and digitizing loyalty programs with QR codes.