HPL revenue grows 19% QoQ, but costs outpace sales
Standalone margin slipped 0.53 percentage points as expenses grew faster than revenue; management highlighted scaling and pricing actions.
Filed 05 Nov 2026, 16:59 IST · after market close · HPL Electric & Power Ltd (HPL)
Key takeaways
- Standalone revenue rose +19.11% QoQ, but expenses grew +19.82%, narrowing operating margin by 0.53 percentage points.
- Management said Q2 C&I revenue reached Rs 337.46 cr, up +64.42% YoY, while Wires & Cables revenue rose +159.46% to Rs 177.99 cr.
- Net profit rose +29.48% QoQ to Rs 23.19 cr, with only a marginal benefit from a 0.11-percentage-point lower tax rate and other income contributing 3.41% of PBT.
Price around the results
Revenue momentum came with a small margin giveback
HPL’s standalone revenue increased +19.11% QoQ, while operating profit grew more slowly at +13.87%. Expenses rose +19.82%, outpacing sales and reducing operating margin by 0.53 percentage points to 11.46%. Net profit still increased +29.48% QoQ as interest costs rose +4.20% and depreciation increased +3.58%.
C&I and cables led management’s growth narrative
Management said Q2 C&I revenue reached Rs 337.46 cr, its highest quarterly level, up +64.42% YoY. It also said Wires & Cables revenue rose +159.46% YoY to Rs 177.99 cr. The company told investors that pricing actions initiated in H1 are being extended across Wires & Cables, Lighting and Switchgear.
Margin is below the Industrials peer median
HPL’s 11.46% operating margin was 0.37 percentage points below the 11.83% median for the 154 Industrials peers that had reported the quarter. The available quarterly trend shows one sequential margin decline from Q1FY27, rather than evidence of a longer run. Other income was only 3.41% of PBT, while the tax rate fell by 0.11 percentage points, so neither materially changes the quality of the operating result.
Management links the next phase to scale and margin repair
Management said its FY27 focus is to scale both verticals while restoring margins. The presentation says installed capacity is 1.1 crore meters per year, while the order book stood at more than Rs 2,700 crore as of 2 November 2026, with over 96% in Metering, Systems & Services. Management also said AMISP project awards are projected to grow at approximately 30-40% CAGR and that dispatch schedules can cause quarter-to-quarter variability in smart-metering performance.
Results were filed after market close
The standalone results were filed after market close on 5 November 2026. There is therefore no post-results stock reaction to assess yet.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹611 cr | ₹513 cr | +19.11% |
| Other income | ₹1 cr | ₹1 cr | +0.95% |
| Expenses | ₹541 cr | ₹451 cr | +19.82% |
| Operating profit | ₹70 cr | ₹62 cr | +13.87% |
| Operating margin (%) | 11.46% | 11.99% | — |
| Interest | ₹22 cr | ₹21 cr | +4.20% |
| Depreciation | ₹18 cr | ₹17 cr | +3.58% |
| Profit before tax | ₹31 cr | ₹24 cr | +29.23% |
| Tax | ₹8 cr | ₹6 cr | +28.71% |
| Net profit | ₹23 cr | ₹18 cr | +29.48% |
| EPS (₹) | ₹3.61 | ₹2.79 | +29.39% |
Operating margin of 11.46% compares with a Industrials sector median of 11.83% across 154 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q2 FY27 C&I revenue reached ₹337.46 crore, up 64.42% year on year.
- Wires & Cables revenue grew 159.46% year on year to ₹177.99 crore in Q2 FY27.
Guidance & outlook
- Management’s FY27 focus is to scale both verticals while restoring margins.
- AMISP project awards are projected to grow at approximately 30–40% CAGR.
Expansion
- HPL has installed capacity to produce 1.1 crore meters per year.
New orders
- The order book stood at more than ₹2,700 crore as of 2 November 2026.
- Metering, Systems & Services represented more than 96% of the ₹2,700+ crore order book.
New initiatives
- HPL is extending pricing actions across Wires & Cables, Lighting and Switchgear.
- HPL’s smart meters use embedded software and Wirepas RF Mesh communication technology.
Competition
- HPL commands approximately 20% market share in the domestic meters market.
Problems & risks
- AMISP dispatch schedules cause quarter-to-quarter variability in smart-metering performance.
What to watch
- Whether operating margin recovers from 11.46% after the 0.53-percentage-point sequential decline.
- Whether expense growth falls below the +19.82% QoQ recorded in Q2FY27.
- Whether the more than Rs 2,700 crore order book remains concentrated in Metering, Systems & Services, which represented over 96% of it.