HPL Electric & Power Limited revenue rises 40%, profit up 5%

HPL Electric & Power Limited reported consolidated revenue from operations of Rs 601.3108 crore for the quarter ended September 30, 2026, up 40.7% year on year, while net profit increased 4.7% to Rs 23.4037 crore. Expenses grew faster than revenue, and the Metering, Systems & Services segment reported a lower segment result despite higher sales.

Why did HPL’s profit grow slower than revenue?

HPL’s profit grew slower because total expenses increased 42.8% year on year to Rs 578.1006 crore in the quarter ended September 30, 2026, exceeding the 40.7% increase in revenue from operations. Profit before tax rose 3.0% to Rs 31.3925 crore from Rs 30.4928 crore, while net profit rose to Rs 23.4037 crore from Rs 22.3573 crore.

The reported figures indicate lower earnings conversion from revenue in the September quarter. Net profit represented about 3.9% of revenue from operations in September 2026, compared with about 5.1% in September 2025. Employee benefit expense increased to Rs 61.3428 crore from Rs 54.1189 crore, other expenses rose to Rs 40.4291 crore from Rs 38.0374 crore, and finance cost declined to Rs 22.2095 crore from Rs 23.5675 crore.

The expense increase was also visible in materials consumed, which rose to Rs 411.7094 crore in the September 2026 quarter from Rs 275.8395 crore a year earlier. Depreciation and amortisation declined to Rs 11.7098 crore from Rs 12.6743 crore, but that reduction did not offset the increase in materials, employee costs and other expenses.

Which HPL segment drove September-quarter revenue growth?

HPL’s Consumer, Industrial & Services segment drove most of the September-quarter revenue increase, with segment revenue rising 64.4% year on year to Rs 337.4616 crore. The segment added Rs 132.2179 crore of revenue from the September 2025 quarter, when it recorded Rs 205.2437 crore of sales.

Metering, Systems & Services revenue increased 17.9% to Rs 270.1492 crore from Rs 229.2045 crore. Both segments together reported revenue of Rs 601.3108 crore, matching consolidated revenue from operations, and the filing did not report an inter-segment revenue deduction for the quarter.

The two segments had different profit trends. Consumer, Industrial & Services segment result increased 33.2% to Rs 30.0110 crore from Rs 22.5290 crore, while Metering, Systems & Services segment result declined 17.2% to Rs 33.2566 crore from Rs 40.1565 crore. Their combined segment result was Rs 63.2776 crore, only 0.9% above Rs 62.6855 crore a year earlier.

Unallocated expenses net of income increased to Rs 9.3856 crore from Rs 8.6252 crore in the September 2026 quarter. Interest expense declined to Rs 22.4995 crore from Rs 23.5675 crore, resulting in profit before tax of Rs 31.3925 crore after the reported segment results and unallocated costs.

How did HPL perform in the first half?

HPL reported revenue from operations of Rs 1,123.5535 crore for the half year ended September 30, 2026, up 37.4% from Rs 817.4769 crore in the corresponding 2025 half year. Net profit increased 3.1% to Rs 42.0970 crore, while profit before tax rose 1.9% to Rs 56.5618 crore.

Materials consumed rose to Rs 837.4982 crore from Rs 535.9278 crore during the half year, while employee benefit expense increased to Rs 120.0258 crore from Rs 107.9709 crore. Depreciation and amortisation increased to Rs 36.7950 crore from Rs 24.2264 crore, whereas finance cost decreased to Rs 44.5803 crore from Rs 46.1726 crore.

Consumer, Industrial & Services generated first-half revenue of Rs 615.0496 crore, up 60.0% from Rs 384.3364 crore, and its segment result increased to Rs 53.3325 crore from Rs 43.6849 crore. Metering, Systems & Services revenue rose to Rs 508.5039 crore from Rs 433.1405 crore, but its segment result fell to Rs 66.9507 crore from Rs 76.1935 crore.

Combined segment results increased 1.2% to Rs 120.2832 crore in the half year ended September 2026 from Rs 118.8784 crore a year earlier. Unallocated expenses net of income rose to Rs 19.1411 crore from Rs 17.1965 crore, while interest expense was Rs 44.5803 crore, compared with Rs 46.1726 crore in the prior-year half.

What do HPL’s cash flows show?

HPL generated net cash from operating activities of Rs 52.8317 crore in the half year ended September 30, 2026, down 54.0% from Rs 114.8931 crore in the corresponding 2025 period. Operating profit before working-capital changes increased to Rs 135.6989 crore from Rs 124.0194 crore, but cash generated from operations declined to Rs 62.7714 crore from Rs 123.9001 crore.

Inventory increased by Rs 95.3652 crore during the half year, compared with an increase of Rs 37.0590 crore in the prior-year period. Trade receivables increased by Rs 28.2499 crore after declining by Rs 25.1823 crore a year earlier, while trade payables increased by Rs 75.9089 crore against a Rs 44.9399 crore increase in the comparable period.

Net cash used in investing activities was Rs 42.8134 crore, compared with Rs 161.5829 crore used in the prior-year half. Payments for property, plant and equipment were Rs 47.7536 crore, down from Rs 111.6215 crore, while the increase in capital work in progress was Rs 5.4683 crore, compared with Rs 39.5849 crore a year earlier.

Financing activities used Rs 8.8704 crore in the September 2026 half year, compared with a net inflow of Rs 57.3536 crore a year earlier. HPL reported Rs 43.8922 crore of finance-expense payments, Rs 6.4300 crore of dividend payments and a Rs 28.0291 crore net inflow from working-capital loans; cash and cash equivalents ended the period at Rs 82.3089 crore.

How did HPL’s balance sheet change?

HPL’s total assets increased to Rs 2,555.7286 crore at September 30, 2026 from Rs 2,398.3299 crore at March 31, 2026. Current assets increased to Rs 1,857.2714 crore from Rs 1,713.0666 crore, including inventories of Rs 843.8741 crore and trade receivables of Rs 794.9537 crore.

Inventories increased by Rs 95.3651 crore from Rs 748.5090 crore at March 31, while trade receivables increased by Rs 29.6803 crore from Rs 765.2734 crore. Property, plant and equipment increased to Rs 620.1635 crore from Rs 608.2539 crore, and capital work in progress declined to Rs 35.5085 crore from Rs 40.9769 crore.

Total liabilities rose to Rs 1,517.2549 crore at September 30 from Rs 1,395.7855 crore at March 31. Current borrowings increased to Rs 677.9517 crore from Rs 649.9227 crore, non-current borrowings rose to Rs 113.9436 crore from Rs 99.8326 crore, and trade payables other than micro and small enterprise dues increased to Rs 596.7832 crore from Rs 521.7581 crore.

Total equity increased to Rs 1,038.4737 crore at September 30, 2026 from Rs 1,002.5444 crore at March 31, 2026. Equity attributable to shareholders of the parent rose to Rs 1,036.0881 crore from Rs 1,000.1980 crore, while non-controlling interests increased to Rs 2.3856 crore from Rs 2.3464 crore.

Conclusion

HPL delivered higher September-quarter and first-half revenue, led by Consumer, Industrial & Services, but profit growth trailed sales growth as expenses rose faster and Metering, Systems & Services recorded lower segment results. The half-year cash-flow statement also shows that higher inventory and receivables absorbed cash despite a rise in operating profit before working-capital changes.

The disclosed Rs 95.3652 crore inventory increase and Rs 28.2499 crore receivables increase during the half year are the principal unresolved working-capital movements to watch. Future disclosures will also show whether Consumer, Industrial & Services can sustain its Rs 615.0496 crore first-half revenue level and whether Metering, Systems & Services can improve on its Rs 66.9507 crore segment result.