Q1 2026 HPL Electric & Power Ltd Earnings Call Transcript
Key Points
- HPL Electric & Power Ltd (BOM:540136) has a strong order book in the Metering segment, standing at INR3,000 crores, providing long-term visibility and growth potential.
- The Consumer & Industrial segment showed robust performance with a 16% year-on-year revenue growth, and EBIT increased by 23%, with margins crossing 11%.
- Wire & Cables segment experienced significant growth of 35%, supported by an extensive distribution network of over 900 dealers and 85,000 retailers.
- Gross margins expanded by 230 basis points, and EBITDA margin improved by 85 basis points, indicating a shift towards higher-margin products.
- The company is investing in R&D across smart meters, automation, and energy-efficient products, enhancing competitiveness in both verticals.
- Revenues in Q1 were slightly down by 2.5% due to delays in dispatch clearances and execution slowdowns, primarily caused by monsoon-related issues.
- The Metering segment faced challenges with delays in material lifting by AMISPs, impacting short-term performance.
- There is increased competitive intensity in the market, with potential pressure on pricing in tenders.
- Working capital has historically been stretched in the Metering business, although improvements are expected with the growing Consumer & Industrial segment.
- The company faces execution challenges at the field level, which are beyond its direct control, affecting the pace of installations.
(audio in progress) Please note that this conference is being recorded and that some statements in this call may be forward looking based on current expectations and subject to risks that could cause results to differ materially. You can download HPL's investor presentation and press release from the links in the community chat or from the company website or the NSE.
So we'll get started. I'll hand over the conference to Gautam to begin with some opening remarks. Over to you, Gautam.
Yes. Thank you, Shankhini. Good afternoon, everyone, and thank you for joining us. Let me start with the Metering & Systems, a key pillar of our business with high potential for growth. In Q1, revenues were a bit lower as a few dispatch clearances got delayed with execution slowdown mainly due to the monsoons. These are timing issues, not structural ones, and we expect things to pick up immediately in Q2
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