HPL Electric & Power: Powering Ahead with a Dual Growth Engine in Q2 & H1 FY26

HPL Electric & Power Limited, a prominent player in India's electrical equipment sector, has reported a resilient performance for the second quarter and first half of the financial year 2026. The company's strategy of balancing its dual growth engines – Metering & Systems and Consumer & Industrial (C&I) segments – appears to be yielding positive results, despite some temporary headwinds in its metering business.

For Q2 FY26, HPL Electric & Power reported a revenue from operations of ₹434.45 crore, marking a 2.87% year-on-year growth. The first half (H1 FY26) saw revenues at ₹817.48 crore, broadly stable compared to the previous year. A notable highlight was the expansion in profitability, with EBITDA increasing by 8.79% YoY to ₹65.90 crore in Q2 FY26, and by 6.16% to ₹123.90 crore in H1 FY26. This led to an EBITDA margin of 15.17% for Q2 and 15.16% for H1, demonstrating improved operational efficiency and a richer product mix. Profit After Tax (PAT) for Q2 FY26 stood at ₹22.36 crore, a 3.58% increase YoY, and ₹40.84 crore for H1 FY26, up 5.78% YoY.

Segmental Dynamics and Strategic Focus

The Metering, Systems & Services segment, a cornerstone of HPL's business, contributed ₹229 crore (53%) to Q2 FY26 revenue and ₹433 crore (53%) to H1 FY26 revenue. While this segment experienced some moderation in Q2 due to slower project execution and delayed dispatch clearances, management is confident about a significant pick-up in deliveries from November to March FY26. The company boasts a robust order book of over ₹3,300 crore, with approximately 99% comprising smart meters, providing multi-year execution visibility aligned with the nationwide smart metering and RDSS (Revamped Distribution Sector Schemes) initiatives. Despite the temporary slowdown, the segment's EBIT margins improved to around 17.5% in Q2, driven by pricing discipline and a richer mix of smart meters.

The Consumer & Industrial (C&I) segment emerged as a consistent growth engine, delivering robust performance. It contributed ₹205 crore (47%) to Q2 FY26 revenue, growing 30% YoY, and ₹384 crore (47%) to H1 FY26 revenue, up 23% YoY. This segment includes Wires & Cables, Switchgear, Lighting, and Fans. Wires & Cables continued its strong momentum with 24% growth in Q2, driven by healthy demand from both institutional and retail channels. The Lighting & Electronics segment also saw a clear turnaround, delivering around 21% growth after several subdued quarters, indicating improved channel health and product acceptance. Within the C&I segment, switchgear and wires & cables each account for roughly 40% of the revenue, with lighting (including fans) making up the remaining 20%.

Here is a financial summary of HPL Electric & Power's performance:

Strategic Initiatives and Outlook

HPL is actively investing in its brand and distribution network to sustain growth. In H1 FY26, advertising and promotion spends for the C&I segment stood at ₹7.7 crore (around 2% of C&I sales), with plans to increase this in H2 to support brand building and geographic expansion. The company aims to double its C&I business in the next three years, leveraging its strong R&D capabilities and continuous product innovation. New product launches, such as advanced LED street lights, automatic transfer switches, and arc fault detection devices, underscore its commitment to technological leadership.

Here is a segment comparison of HPL Electric & Power's performance:

Management is confident about the future, projecting progressive growth driven by the structural tailwinds of electrification, urbanization, and digitization. The company's credit quality has strengthened, with CRISIL upgrading its rating from A- to A, and India Ratings and Research assigning an IND A+/Stable rating. This reflects a solid balance sheet and strong growth visibility, especially from the smart-meter opportunity. HPL is also actively participating in international exhibitions and domestic trade shows, amplifying its brand presence and exploring new markets.

Disciplined Execution for Sustainable Value

HPL Electric & Power Limited's Q2 and H1 FY26 performance highlights its disciplined execution and strategic clarity. The company is effectively managing the temporary slowdown in its metering business while accelerating growth in its consumer and industrial segments. With a robust order book, continuous product innovation, and a focus on expanding its distribution network, HPL is well-positioned to capitalize on the significant opportunities in the Indian electrical equipment market. The management's commitment to maintaining margin discipline and investing in brand and capabilities underscores its focus on delivering steady and sustainable value for all stakeholders over the medium to long term.