HPL Electric & Power Limited posts ₹608 crore record Q2 revenue

HPL Electric & Power Limited reported record Q2 FY27 revenue from operations of ₹608.3 crore, up 40.0% year on year, but its EBITDA margin declined to 11.74% as input-cost volatility and revenue mix affected profitability.

How did HPL perform in Q2 FY27?

HPL delivered its highest-ever quarterly revenue in Q2 FY27, crossing the ₹600 crore mark for the first time. Revenue from operations rose 40.0% year on year to ₹608.3 crore, while EBITDA increased 8% to ₹71 crore. Net profit rose 4.5% year on year to ₹23.4 crore.

The quarter extended the company's strong first-half revenue growth. H1 FY27 revenue reached ₹1,123.6 crore, up 37.4% year on year, while first-half EBITDA rose 9% to ₹135 crore. Management described the performance as support for its two-engine model, comprising Consumer & Industrial and Metering & Systems operations.

What drove HPL's revenue growth?

Consumer & Industrial was the main contributor to HPL's quarterly growth, with revenue increasing 64% year on year to ₹337 crore. The business accounted for about 55% of quarterly revenue, indicating that it has become the larger contributor to the company's reported sales mix.

Wire and Cables led the expansion within this segment. Quarterly Wire and Cables revenue rose 159% year on year to ₹178 crore, and H1 revenue reached ₹324 crore. Management said this first-half figure was about 95% of the revenue achieved by the business during the whole of FY26.

Other product categories also recorded growth. Lighting revenue increased 59% year on year and domestic switchgear revenue grew 43%. Industrial switchgear posted 29% sequential growth. Management linked demand in Wire and Cables to a diversified customer base that includes builders, industrial and solar original equipment manufacturers, telecom companies and institutional customers.

Why did HPL's EBITDA margin decline?

HPL's EBITDA margin fell to 11.74% in Q2 FY27 from 12.26% in Q1 FY27 despite the increase in revenue and EBITDA. This means EBITDA growth did not keep pace with the 40% expansion in quarterly revenue.

Management attributed the pressure to input-cost volatility and changes in revenue mix. It said pricing and product-mix actions were under way, but their benefits had not yet translated into a recovery in reported margins. The supplied earnings information also referred to continuing cost pressure in the metering business, where fixed contracts can limit the immediate ability to pass on higher costs.

The margin trend is relevant because HPL's Metering & Systems business provides longer-cycle execution visibility, while Consumer & Industrial is expanding rapidly through products and channels. The different cost structures and contractual terms across these operations can influence consolidated profitability even when revenue rises strongly.

What does the quarter mean for HPL's operations and investors?

The Q2 result shows that HPL's growth is being supported by a broader Consumer & Industrial platform alongside its Metering & Systems business. The Consumer & Industrial segment's 55% share of quarterly revenue and the rapid growth in Wire and Cables are key indicators of that shift in the sales base.

HPL's distribution network remains central to this strategy. The company reported more than 900 authorised dealers and 90,000 retailers, providing a channel for its Consumer & Industrial product categories. Management said its focus is on volume growth, customer relationships and capacity to support sustained demand.

For investors, the principal contrast in the quarter is between record revenue and lower EBITDA margin. Revenue, EBITDA and net profit all increased year on year, but the margin fell sequentially. The company has disclosed pricing and product-mix measures, while noting that the financial benefit had not yet appeared in reported profitability.

Conclusion

HPL Electric & Power Limited entered Q2 FY27 with strong revenue momentum, led by Consumer & Industrial revenue of ₹337 crore and Wire and Cables revenue of ₹178 crore. Its record ₹608.3 crore quarterly revenue and 37.4% first-half revenue growth demonstrate a larger operating base, while the 11.74% EBITDA margin highlights the effect of input costs and business mix on earnings conversion.

The next point to watch is whether the pricing and product-mix actions cited by management improve reported margins while revenue growth continues. HPL has uploaded the audio recording of its investor call and said the conference-call transcript will be filed with stock exchanges and placed on its website in due course.