1. At a Glance
Q1 FY26 was a mixed plate — revenue slipped 2.5% YoY to ₹383 Cr, but PAT still rose 8.5% to ₹18.48 Cr thanks to fatter margins (+85 bps). The company flashed a ₹3,000 Cr order book, which is almost 8x its quarterly sales — like a restaurant with bookings till 2030 but still struggling to serve today’s customers.
2. Introduction
HPL Electric is the Indian uncle who insists on doing everything — meters, switches, switchgear, LEDs, cables — because “why waste talent on just one thing?” After 40 years in business, they’re a household name in the utility and government contract space, with exports to 42+ countries. They also lead theon-load change-over switchsegment with 50% market share — a product you probably didn’t know existed, but without which your power supply might behave like Mumbai traffic signals.
3. Business Model (WTF Do They Even Do?)
- Five verticals:Metering solutions, modular switches, switchgear, LED lighting, wires & cables.
- Customers:Power utilities, government agencies, retail & institutional.
- Exports:Asia, Africa, Europe, UK — basically anywhere the power grid has mood swings.
- Moat:Strong government contract pipeline, brand recall in B2B, and manufacturing integration.
4. Financials Overview
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 383.03 | 392.00 | 493.00 | -2.5% | -22.3% |
| EBITDA (₹ Cr) | 58.00 | 56.00 | 82.00 | +3.6% | -29.3% |
| PAT (₹ Cr) | 18.48 | 17.03 | 37.00 | +8.5% | -50.0% |
| EPS (₹) | 2.87 | 2.65 | 5.78 | +8.3% | -50.3% |
Commentary:QoQ fall is steep — Q4 was inflated by a strong year-end billing cycle. YoY growth in PAT is mostly from improved cost control, not top-line expansion.
5.
Valuation (Fair Value RANGE Only)
Method 1 – P/E
- EPS (TTM) ≈ ₹14.81
- Reasonable P/E for mid-cap industrials: 25–35x (given growth + infra push).
- FV range: ₹370 – ₹518
Method 2 – P/BV
- Book Value ≈ ₹142
- Sector P/BV: 2.5–3.5x
- FV range: ₹355 – ₹497
Method 3 – DCF (high-level)
- Base PAT ≈ ₹95 Cr, growth 10%, CoE 13%, terminal growth 4% → FV ≈ ₹380 – ₹520
📌Final FV Range:₹355 – ₹520 (Educational purposes only). CMP ₹593 is above range — implying market is already pricing in future growth perfection.
6. What’s Cooking – News, Triggers, Drama
- ₹3,000 Cr order book— mostly from metering and switchgear.
- Consumer segment up 16% YoY— LEDs & switches shining brighter.
- EBITDA margin +85 bps YoY— operational efficiencies kicking in.
- Debt & Debtors:153 debtor days remain a sore point — government
