Summary
HPL Electric & Power Limited - Q3 FY2026 Earnings Call Summary Monday, February 9, 2026, 12:00 PM IST
Event Participants
Executives 1 Gautam Seth (Joint Managing Director & CFO)
Analysts 5 Chandresh Malpani, Kunal Dubey, Pranjal Mukhija, Rishab Hingre, Sahil Patani, Viraj Mahadevia
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹475 crores | +21% YoY; driven by strong execution in metering and 60% growth in wires and cables. |
| EBITDA | ₹72 crores | +29% YoY; growth outpaced revenue due to better product mix and execution discipline. |
| Metering Order Book | ₹3,000+ crores | Multi-year visibility; Q3 deliveries increased +25% QoQ and +11% YoY. |
| Switchgear Revenue | ₹68 crores | +33% YoY for Q3; 9M FY26 revenue reached ₹233 crores (+25% YoY). |
| Dealer Network | 900+ Dealers | Expansion to 85,000+ retailers to improve reach and repeat demand. |
Geographic & Segment Commentary
- Smart Metering: This segment remains the long-term growth driver with a massive ₹3,000 crore order book. Execution picked up meaningfully in Q3 post-monsoon, with management expecting Q4 FY26 to be the strongest quarter for supply and installation.
- Consumer & Industrial (C&I): Now established as a second core pillar, this segment saw significant growth in Wires & Cables (+60% YoY) and Switchgear (+33% YoY). The strategic goal is to double this segment’s revenue over the next 3 to 4 years, targeting approximately ₹1,000 crores by next year.
- International Markets: Management is identifying export opportunities in the UK and Europe following recent FTAs. The company is pursuing international certifications and plans to showcase products at global fairs in Dubai and Hannover to leverage the price competitiveness gained from duty reductions.
Company-Specific & Strategic Commentary
- Water Metering Launch: HPL launched NRAM plus smart water meters, expanding into water infrastructure. Management views this as a natural tech extension of electricity metering, targeting domestic government schemes and eventually export markets.
- Digital Transformation: The company is launching apps to connect 85,000+ retailers and electricians via QR-code-based loyalty programs. Marketing spend has shifted heavily toward digital (2x-3x increase) to drive brand pull in Tier 2 and Tier 3 cities.
- R&D and Product Expansion: With 180+ R&D engineers, HPL is evaluating entry into High Tension (HT) and Extra High Voltage (EHV) cables. The company already maintains a dedicated solar division supplying the top 10 solar players with cables and net-metering solutions.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth | 20% - 25% YoY | Targeted for FY27 based on strong C&I momentum and a clear metering policy. |
| C&I Revenue | ₹1,000 crores | Management aims to cross this threshold in FY27 to trigger larger ATL brand-building spends. |
| Metering Execution | 5 crore meters/year | Industry-wide outlook; HPL expects to maintain its ~20% market share as AMISPs accelerate installations. |
Risks & Constraints
| Risk | Context |
|---|---|
| Raw Material Volatility | Copper and silver price increases impact C&I margins, particularly in switchgear where price passing has a 3-6 month lag. |
| Execution Lags | While policy hurdles are cleared, ground-level execution by AMISPs (Advanced Metering Infrastructure Service Providers) remains subject to utility support and labor availability. |
| Export Lead Times | International smart meter orders require country-specific certifications, which management notes can take up to 12 months to formalize. |
Q&A Highlights
Metering Order Visibility
- Question: What is the status of the 15-18 crore meters tendered by the government? (Chandresh Malpani)
- Answer: Approximately 5 crore meters are implemented; another 4-5 crore are pending as OEM orders. Roughly 6-8 crore meters awarded to AMISPs are yet to be sub-contracted to manufacturers like HPL. (Gautam Seth)
Margin Pressure
- Question: Are rising copper prices impacting gross margins, which fell from 38% to 36%? (Viraj Mahadevia)
- Answer: Impact is primarily in C&I. Wires/cables pass costs in 2-3 weeks, but switchgear takes 3-6 months. Smart meters are less sensitive to copper volatility. (Gautam Seth)
Strategic Product Expansion
- Question: Does HPL plan to move into EHV cables or solar inverters like competitors? (Rishab Hingre)
- Answer: We are actively evaluating HT and EHV cables with a potential update later this year. We already have a full solar division for cables and switchgear, though not currently in inverters. (Gautam Seth)
Software Capabilities
- Question: What is HPL’s role in the software/AMI piece? (Pranjal Mukhija)
- Answer: HPL provides both billing software and “headend” systems. The company acts as a system integrator for certain customers and offers these solutions to regular AMISPs. (Gautam Seth)
Key Takeaway
HPL Electric & Power delivered a strong Q3 FY26, characterized by 21% revenue growth and a 29% surge in EBITDA, reflecting improved execution in its ₹3,000 crore smart metering order book and robust 60% growth in its wires and cables segment. The company successfully shifted its business mix, with the Consumer & Industrial (C&I) segment now contributing 44% of revenue, up from 37% a year ago. Strategically, HPL is expanding its addressable market through the launch of smart water meters and exploring high-voltage cable segments. Management is optimistic about FY27, guiding for 20-25% topline growth and targeting ₹1,000 crores in C&I revenue. While commodity price lags in switchgear and external execution paces of AMISPs remain watch points, HPL’s expanding distribution network of 900+ dealers and digital loyalty programs position it to capitalize on India’s infrastructure and consumption cycles. Overall, the company is transitioning from a specialized meter manufacturer to a diversified electrical equipment player with a strengthening international footprint.
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