HPL Electric & Power Ltd Q2 FY26 – Smart Meters, Smarter Comeback, and the LED That Refused to Dim

1.At a Glance

If India’s electrical landscape had a Bollywood character,HPL Electric & Power Ltdwould be that seasoned actor—40 years old, constantly reinventing itself, occasionally trolled for past flops, but suddenly back in demand thanks to thesmart meter blockbuster.

At ₹433 per share and a market cap of ₹2,778 crore, HPL stands at the junction of “solid fundamentals” and “mildly electrified hype.” WithQ2 FY26 revenue at ₹434 croreandPAT of ₹22.3 crore, it isn’t exactly flipping the switch on Wall Street yet, but the glow is unmistakable.

Thestock P/E is 29x,industry P/E 34.8x—so yes, it’s still slightly “discounted Havells.” TheROCE is 14.5%,ROE 10.8%, and debt of₹742 croreadds a slight static buzz to the balance sheet. But here’s the real voltage: a₹3,700 crore order book, 95% of which is smart meters.

The company isn’t just selling electricals—it’s literally sellingvisibility. And that too, to power utilities that desperately need it. If that’s not electric irony, what is?

2.Introduction – The Shockingly Familiar Comeback

Once upon a time, HPL Electric was known for switches, wires, and the occasional argument with Havells. Fast forward to FY26, and the brand that gave India its modular switches now gives power utilities theirsmart meters.

But here’s the twist—while Havells became the Virat Kohli of electrical goods, HPL stayed the Rahul Dravid—reliable, silent, and perpetually underrated. Yet now, in an era where smart metering is the new cricket league, the old-school player has suddenly found its T20 form.

After years of mediocre returns, it’s riding theSmart Meter Yatra—with a ₹3,700 crore order book and demand rising faster than electricity bills post-subsidy.

Themetering segment now forms 61% of revenue (up from 40% in FY22)—a sign that this isn’t a diversification strategy; it’s a reinvention. TheConsumer, Industrial & Servicesarm, contributing 39%, still handles your LEDs, switchgears, and wires—though the lighting segment has been dimmer due to price erosion.

But if you ask HPL, they’ll say: “Who cares about dim LEDs when your meters are getting smarter than the average voter?”

3.Business Model – WTF Do They Even Do?

In the simplest terms,HPL makes and sells things that keep India’s lights on—and occasionally,record how much you’re using them.

Five key product categories define this empire of electric efficiency:

1. Metering Solutions– Smart, prepaid, net, and conventional meters. Basically, your electricity bill’s snitch.
2. Modular Switches– For those who like their walls to look like an Apple Store.
3. Switchgears– The protection squad for every electrical system.
4. LED Lighting– Your power-saving, mood-setting friend.
5. Wires & Cables– The arteries of India’s current flow.

Over 42 countries import their products, from Asia to Africa to Europe—because bad wiring knows no borders.

And HPL doesn’t just manufacture; itmanages perception. With 900 dealers, 80,000 retailers, 90 branches, and 5 warehouses, it’s building one of the strongest distribution networks in Indian electricals.

But the crown jewel remainssmart metering—powered by partnerships with tech giants likeWirepas(RF mesh technology) and a freshMoU with Guangxi Ramway Technologyfor local relay manufacturing.

So yes, while competitors flaunt fancy LEDs, HPL is selling intelligence—literally, through meters.

4.Financials Overview

Annualized EPS:₹13.8 →P/E = 31.3x (Reasonable for power sector glamour)

Commentary:Revenue growth is moderate, but margins are sparkling brighter than your Diwali string lights. EBITDA margins at 15% and PAT margins at