HBL Engineering electronics revenue drops 54% in September quarter

HBL Engineering Limited reported a 54% year-on-year decline in electronics revenue to Rs 363.23 crore in the quarter ended September 30, 2026, while sales and income from operations fell 29% to Rs 871.56 crore. Defence and aviation batteries revenue, however, rose to Rs 82.47 crore from Rs 29.81 crore a year earlier.

Why did HBL Engineering’s September-quarter revenue decline?

HBL Engineering’s September-quarter revenue decline was numerically led by electronics, where revenue fell by Rs 430.36 crore to Rs 363.23 crore from Rs 793.59 crore in the quarter ended September 30, 2025. The 54% year-on-year reduction came after electronics had been the largest reported revenue segment in the comparable prior-year quarter. Total segment revenue declined to Rs 871.73 crore from Rs 1,223.80 crore.

The comparison with the immediately preceding quarter shows a different movement. Electronics revenue increased by Rs 135.92 crore from Rs 227.31 crore in the quarter ended June 30, 2026, while sales and income from operations increased from Rs 638.03 crore to Rs 871.56 crore. The sequential gain did not match the electronics revenue reported in the September 2025 quarter.

Intersegment revenue, measured by HBL Engineering at the market price at which products are sold to external customers, was Rs 0.17 crore in the September 2026 quarter, compared with Rs 0.90 crore a year earlier. After this deduction, sales and income from operations were Rs 871.56 crore, down Rs 351.34 crore from Rs 1,222.90 crore in the prior-year quarter.

How fast did HBL Engineering’s defence and aviation batteries grow?

HBL Engineering’s defence and aviation batteries revenue increased by Rs 52.66 crore year on year to Rs 82.47 crore in the September 2026 quarter, a rise of about 177% from Rs 29.81 crore. Revenue also rose by Rs 44.54 crore from Rs 37.93 crore in the June 2026 quarter. Among the three reportable segments, this was the largest percentage revenue increase in the year-on-year comparison.

For the half year ended September 30, 2026, defence and aviation batteries generated Rs 120.40 crore, compared with Rs 103.46 crore in the corresponding prior-year period. The Rs 16.94 crore increase contrasted with a Rs 383.44 crore reduction in electronics half-year revenue, which fell to Rs 590.54 crore from Rs 973.98 crore.

The segment result for defence and aviation batteries was Rs 22.14 crore in the September quarter, compared with Rs 1.45 crore a year earlier and Rs 9.10 crore in the preceding quarter. Segment assets were Rs 527.55 crore at September 30, 2026, compared with Rs 403.94 crore at September 30, 2025 and Rs 477.79 crore at June 30, 2026.

Which HBL Engineering segment generated the most September-quarter revenue?

HBL Engineering’s industrial batteries segment generated the highest September-quarter revenue at Rs 417.69 crore, exceeding electronics revenue of Rs 363.23 crore by Rs 54.46 crore. Industrial batteries revenue increased from Rs 387.56 crore a year earlier and Rs 361.94 crore in the June 2026 quarter. Its revenue was 48% of total segment revenue of Rs 871.73 crore in the September 2026 quarter.

Industrial batteries’ segment result was Rs 88.87 crore, below Rs 110.24 crore in the year-earlier quarter but above Rs 82.71 crore in the preceding quarter. For the half year ended September 30, 2026, segment revenue reached Rs 779.63 crore against Rs 724.94 crore in the corresponding prior-year period, while the segment result was Rs 171.58 crore compared with Rs 193.78 crore.

Electronics nevertheless reported the largest segment result in the September 2026 quarter at Rs 145.67 crore. That result was below Rs 461.49 crore in the September 2025 quarter but above Rs 70.73 crore in the June 2026 quarter. Electronics segment assets increased to Rs 881.30 crore at September 30, 2026 from Rs 819.42 crore a year earlier.

What happened to HBL Engineering’s segment profit and assets?

HBL Engineering’s total segment result declined to Rs 234.46 crore in the September 2026 quarter from Rs 558.49 crore a year earlier. Electronics accounted for a Rs 315.82 crore reduction in segment result to Rs 145.67 crore, while industrial batteries declined by Rs 21.37 crore and defence and aviation batteries increased by Rs 20.69 crore. Unallocated operations reported a loss of Rs 22.22 crore, compared with a Rs 14.69 crore loss a year earlier.

Profit before tax was Rs 245.56 crore in the September 2026 quarter, compared with Rs 520.36 crore in the September 2025 quarter. The reconciliation from segment results included interest of Rs 6.31 crore, exceptional-item income of Rs 13.16 crore, other unallocable expenditure of Rs 17.86 crore and unallocable income of Rs 22.11 crore.

Total segment assets stood at Rs 3,425.22 crore at September 30, 2026, compared with Rs 2,677.03 crore a year earlier and Rs 3,133.97 crore at June 30, 2026. Industrial batteries assets were Rs 1,317.37 crore, electronics assets were Rs 881.30 crore and defence and aviation batteries assets were Rs 527.55 crore. Total segment liabilities were Rs 981.41 crore, versus Rs 604.07 crore at September 30, 2025.

Conclusion

HBL Engineering’s segment disclosure shows that the Rs 430.36 crore year-on-year reduction in electronics revenue exceeded the Rs 352.07 crore decline in total segment revenue in the September 2026 quarter. Revenue increases of Rs 30.13 crore in industrial batteries and Rs 52.66 crore in defence and aviation batteries partly offset the lower electronics revenue, while total segment result fell to Rs 234.46 crore from Rs 558.49 crore.

The next quarterly financial results will be relevant because HBL Engineering said the impact of Tonbo Imaging India Limited’s main-board listing, effective October 23, 2026, will be reflected from the next quarter. Tonbo Imaging India Limited is classified as an associate in the consolidated accounts, where associates and the joint venture are accounted for under the equity method.