This article first appeared on GuruFocus .
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Revenue:Grew by about 21% year-on-year to roughly INR475 crores in Q3.
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EBITDA:Increased by about 29% to nearly INR72 crores in Q3.
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Smart Metering Order Book:Over INR3,000 crores, providing multiyear visibility.
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Smart Metering Deliveries:Increased by around 25% sequentially and up about 11% year-on-year.
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Switchgears Revenue:Grew by over 33% year-on-year in Q3 to roughly INR68 crores.
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Wire and Cables Revenue:Recorded strong growth of nearly 60% year-on-year in Q3.
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Lighting and Electronics Revenue:Returned to growth at around 20% year-on-year in Q3.
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Distribution Network:Expanded to over 900 authorized dealers and more than 85,000 retailers.
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Release Date: February 09, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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HPL Electric & Power Ltd ( BOM:540136 ) reported a 21% year-on-year revenue growth in Q3, reaching approximately INR475 crores.
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EBITDA increased by about 29% to nearly INR72 crores, indicating improved profitability.
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The company has a strong order book of over INR3,000 crores in the smart metering segment, providing multiyear visibility.
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Switchgears and Wire & Cables segments showed significant growth, with Switchgears growing over 33% year-on-year in Q3.
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HPL Electric & Power Ltd is expanding its product offerings with the launch of Neeram Pulse smart water meters, tapping into a new market segment.
Negative Points
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The smart metering segment has experienced fluctuations in deliveries, although improvements are expected.
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Copper price volatility has impacted gross margins, particularly in the Consumer and Industrial business.
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The company faces challenges in executing large-scale smart metering projects due to external factors like monsoons.
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There is a lag in passing increased raw material costs to consumers, affecting short-term profitability.
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The company has not provided specific revenue guidance for the new water metering segment, indicating uncertainty in immediate financial impact.
Q & A Highlights
Q: Over the next two to three years, what is the expected segmental breakup between consumer industrial services and smart meters? A: Gautam Seth, CFO and Joint Managing Director, stated that both segments are expected to grow. Currently, the consumer industrial segment is at 45% and smart meters at 55%. This ratio might remain, but could shift to a 50-50 balance depending on business cycles.
Q: What is the total addressable market (TAM) for smart water meters, and is there an export opportunity? A: Gautam Seth explained that the TAM for smart water meters is significant, though exact figures are not available. Revenue contributions are expected to start in the second half of next year. There is potential for export opportunities, but initial focus will be on the domestic market.
Q: Are the challenges in smart metering deliveries resolved, and what is the outlook for the next two to three years? A: Gautam Seth noted that policy-related challenges have been addressed, and execution challenges are being overcome. The company expects a steady trend in smart metering deliveries, with significant growth anticipated over the next few years.
Q: Is there pressure on gross margins due to rising copper prices, and can these costs be passed on? A: Gautam Seth confirmed that copper prices impact the Consumer and Industrial business, particularly wires and cables. Costs are passed on to consumers with a lag, typically two to three weeks, but margins are affected in the short term.
Q: What are HPL's plans for expanding into higher voltage markets and next-generation product lines? A: Gautam Seth mentioned that HPL is evaluating entry into higher voltage cables and has a strong solar product portfolio. The company is also developing new products in R&D to address emerging market needs, including solar solutions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
