Synopsis: HBL Engineering Limited, Railway Kavach stock, reports 134.74% YoY revenue growth and a 409.51% YoY net profit surge in Q2 FY26 results.
This Railway Kavach stock, engaged in the design, manufacture, and supply of specialized batteries, defense and aviation electronics, solar photovoltaic modules, and railway electronics, jumped 15 percent after the company reported September quarterly results with a 410 percent YoY increase in net profit.
With a market capitalization of Rs. 29,776.28 crores, the share of HBL Engineering Limited has reached an intraday high of Rs. 1,121.95 per equity share, rising nearly 14.56 percent from its previous day’s close price of Rs. 979.35. Since then, the stock has retreated and is currently trading at Rs. 1,074.20 per equity share.
Q2 FY26 Result Walkthrough:
Coming into the quarterly results of HBL Engineering Limited, the company’s consolidated revenue from operations increased by 134.74 percent YOY, from Rs. 520.96 crore in Q2 FY25 to Rs. 1,222.90 crore in Q2 FY26, and grew by 103.22 percent QoQ from Rs. 601.77 crore in Q1 FY26.
HBL Engineering Limited generated 31.67 percent of its revenue from the Industrial Batteries segment, 2.44 percent from the Defence & Aviation Batteries, 64.85 percent from electronics, and 1.05 percent from other operating income in Q2 FY26.
In Q2 FY26, HBL Engineering Limited’s consolidated net profit increased by 409.51 percent YOY, reaching Rs. 387.28 crore compared to Rs. 76.01 crore during the same period last year. As compared to Q1 FY26, the net profit has increased by 174.22 percent, from Rs. 141.23 crore.
The basic earnings per share increased by 346.01 percent and stood at Rs. 13.96 as against Rs. 3.13 recorded in the same quarter in the previous year, FY2025.
HBL Engineering Limited’s revenue and net profit have grown at a CAGR of 12.49 percent and 60.39 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 27.3 percent and 20.6 percent, respectively. HBL Engineering Limited has an earnings per share (EPS) of Rs. 23.1, and its debt-to-equity ratio is 0.04x.
Management Guidance:
HBL Engineering Limited expects strong growth over the coming years. For FY26, the company is targeting sales of about 3,000 crore, which represents more than 50 percent growth compared to FY25 revenue of 1,967 crore.
Looking further ahead, the company has set an aspiration of 4,500 crore in revenue by FY30, which would mean more than doubling the current business scale.
Company Overview:
HBL Engineering Limited was founded in 1977 and is headquartered in Hyderabad, India. The company is a leading company specializing in the design, development, and manufacture of specialized batteries and power systems.
The company emerged from the merger of Hyderabad Batteries Ltd and SAB Nife Power Systems Ltd and has evolved over the decades into an engineering powerhouse serving diverse industrial sectors.
HBL Engineering is engaged in producing a wide range of batteries, including lead-acid, nickel-cadmium, silver-zinc, lithium-ion, and specialized batteries for applications in defense, railways, telecommunications, aviation, and renewable energy.
The company also manufactures railway and defence electronics, solar photovoltaic modules, and other engineered power solutions, catering to both domestic and international markets.
With a strong focus on innovation and quality, HBL Engineering has secured significant contracts such as the supply and installation of the Kavach Train Collision Avoidance System for Indian Railways.
Written by – Nikhil Naik
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