Synopsis: The company is building a dual-engine growth model led by smart metering and consumer electrical products. With a Rs.3,200+ crore order book, strong momentum in wires & cables, expanding distribution reach, new product launches and emerging opportunities in smart water metering, management expects both verticals to drive sustainable growth while improving profitability and cash generation.
A leading electrical solutions company is building a dual-engine growth platform through smart metering and consumer electrical products. Backed by a strong order book, rapid expansion in wires & cables, an extensive distribution network, and new opportunities in smart water metering, management expects these businesses to drive sustainable growth. The strategy focuses on improving profitability, strengthening cash generation, and creating a more diversified and resilient revenue mix.Smart Metering Remains the Largest Long-Term Growth Driver
Smart metering continues to anchor HPL Electric & Power Limited’s long-cycle revenue visibility. Metering, Systems & Services account for more than 97% of the company’s Rs.3,200+ crore order book as of May 2026. After an industry-wide execution disruption in Q1FY26 that pulled metering revenue down to Rs.204 crore, the business staged four consecutive quarters of sequential recovery, culminating in Q4FY26 metering revenue of Rs.305.74 crore, the strongest quarter of the year and a 49.9% sequential improvement from the Q1.
Full-year FY26 metering revenue stood at Rs.1,026.43 crore, down 4.57% year-on-year, though management noted that AMISP procurement and installation activity has improved meaningfully and the medium-term opportunity under India’s RDSS programme remains intact.
Consumer & Industrial Business Emerges as Second Growth Engine
The Consumer & Industrial segment has structurally elevated its contribution within the business. FY26 C&I revenue rose 25.62% year-on-year to Rs.784.67 crore, with its revenue share climbing from 37% in FY25 to 43% in FY26. In Q4FY26 alone, C&I revenue grew 19.80% year-on-year to Rs.213.96 crore the strongest C&I quarter on record. The segment’s EBIT margin stood at 10.21% for FY26, moderating from 11.45% in FY25 due to input-cost volatility in metals and industrial plastics, with pricing actions initiated across wires & cables, lighting and switchgear.
Wires & Cables Business Scaling Rapidly
HPL Electric & Powers Wires & cables has been the standout growth engine within C&I. Revenue from the segment surged 50% year-on-year to Rs.340.74 crore in FY26, while Q4FY26 growth came in at nearly 82% year-on-year. Over three years, the segment has nearly doubled from Rs.183.79 crore in FY24, delivering a cumulative revenue step-up of 85.4% at a CAGR of approximately 36%.
Management highlighted that demand is now well diversified across real estate, industrial OEMs, solar projects, telecom and 5G infrastructure, and institutional buyers reducing reliance on any single channel and supporting volume-led rather than commodity-price-led growth.
Operating Performance Remained Resilient
Despite the metering disruption, HPL Electric & Power limited profitability held up through margin discipline. FY26 gross margin expanded 97 basis points year-on-year to 36.01%, while EBITDA grew 10.52% to Rs.281.43 crore with margin improving 56 basis points to 15.54%. Q4FY26 EBITDA came in at Rs.85.81 crore, up 4.34% year-on-year, though EBITDA margin contracted 19 basis points to 16.51%.
Reported PAT for FY26 moderated 2.91% to Rs.91.25 crore (EPS Rs.14.15) primarily due to depreciation jumping 49.96% to Rs.63.23 crore following capacity additions. Cash profit, which strips out non-cash charges, grew a healthier 13.43% year-on-year to Rs.155.51 crore, with Cash EPS rising to Rs.24.15 from Rs.21.29 in FY25.
Smart Water Metering Opens a New Growth Avenue
The company is extending its metering platform beyond electricity into water infrastructure. It inaugurated a dedicated Panel Meter and AMI Water Meter manufacturing facility at Gurugram capable of producing ultrasonic and multi-jet smart water meters, and launched its “Neeram Pulse” smart water meter platform in January 2026.
HPL Electric & Power management acknowledged that near-term revenue contribution from this vertical is not material to FY27 expectations, with commercial scale-up contingent on product approvals and pilot deployments. The global smart water meter market is estimated to grow from approximately USD 4.61 billion in 2024 to USD 9.04 billion by 2030 at an 11.9% CAGR.
Strong Manufacturing and Distribution Network Supports Growth
HPL Electric & Power operates seven manufacturing facilities with annual capacities of 11 million electronic meters, 26 million lighting products, 16 million switchgear units and 194 million metres of wires and cables. Its nationwide distribution network spans more than 90 branch offices, 900+ authorised dealers and over 85,000 retailers, supported by 620+ full-time sales and brand-building employees.
FY27 Strategy Built Around Four Growth Pillars
Management’s of HPL Electric & Power roadmap is anchored by a Two-Engine Electrical Platform split between Smart Metering (leveraging utility-led scale and a multi-year AMISP pipeline) and Consumer & Industrial (driving faster-cycle growth and a channel-led Wires & Cables scale-up). Under this strategy, FY26 revenue grew by +25.6% YoY, with the C&I portfolio share expanding from 37% to 43% to reflect a more balanced growth mix while maintaining robust order book visibility.
Outlook
HPL Electric & Power enters FY27 with improving execution momentum across both verticals. The smart metering recovery is back on track, consumer electrical products are growing structurally, and wires & cables is scaling at an accelerating pace. Can the company sustain this dual-engine momentum while managing input cost headwinds and converting its Rs.3,200+ crore order book into consistent earnings growth?
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