HBL Engineering Ltd: 23% Margins, 2nd in the World, and 1st in Roasting Competitors

1. At a Glance

HBL Engineering is not your average battery maker. They’re sitting 2nd globally in industrial nickel batteries and 3rd in India for VRLA lead batteries, and they’re the only PLT lead battery maker in India. While rivals are busy rebranding PowerPoint slides as “innovations,” HBL has quietly turned into a ₹19,000 Cr powerhouse with operating margins that just shot up to 32% last quarter. Stock’s up, profits are up, and so is the number of investors now pretending they “always believed in the story.”

2. Introduction

Picture this: It’s 1983. The Walkman is the coolest gadget, and India still thinks “tech” means a colour TV with a remote. In this backdrop, HBL Power Systems was born.
Fast forward four decades, and HBL is no longer just a battery player — they’re a power solutions company dabbling in everything from defence electronics to e-mobility.

The market has noticed. The stock has run like it’s on a permanent caffeine drip, posting 112% CAGR over 5 years in price and 65% CAGR in profits over the same period. Debt? Almost non-existent. Margins? Better than your neighbourhood kirana’s margins on Maggi noodles.

While competitors like PTC Industries and KRN Heat Exchangers are busy justifying nosebleed P/Es, HBL has been quietly cashing cheques and scaling capacity. The last quarter’s ₹143 Cr net profit is the corporate equivalent of dropping the mic.

3. Business Model (WTF Do They Even Do?)

HBL makes and services industrial batteries — but not the “DURACELL bunny” kind. We’re talking specialised, mission-critical batteries for railways, telecom, defence, aviation, and industrial backup power.

Key Segments:

• Industrial Nickel Batteries – Used in sectors where failure is not an option (rail signalling, telecom, defence). HBL is #2 globally here.
• VRLA Lead Batteries – 3rd largest in India. Think data centres, power plants, and telecom towers.
• PLT Batteries – Literally the