1. At a Glance
If India’s electrical landscape had a Bollywood character, HPL Electric & Power Ltd would be that seasoned actor—40 years old, constantly reinventing itself, occasionally trolled for past flops, but suddenly back in demand thanks to the smart 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.” With Q2 FY26 revenue at ₹434 crore and PAT of ₹22.3 crore, it isn’t exactly flipping the switch on Wall Street yet, but the glow is unmistakable.
The stock P/E is 29x, industry P/E 34.8x—so yes, it’s still slightly “discounted Havells.” The ROCE is 14.5%, ROE 10.8%, and debt of ₹742 crore adds 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 selling visibility. 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 their smart 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 the Smart Meter Yatra—with a ₹3,700 crore order book and demand rising faster than electricity bills post-subsidy.
The metering segment now forms 61% of revenue (up from 40% in FY22)—a sign that this isn’t a diversification strategy; it’s a reinvention. The Consumer, Industrial & Services arm, 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:
- Metering Solutions – Smart, prepaid, net, and conventional meters. Basically, your electricity bill’s snitch.
- Modular Switches – For those who like their walls to look like an Apple Store.
- Switchgears – The protection squad for every electrical system.
- LED Lighting – Your power-saving, mood-setting friend.
- 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; it manages 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 remains smart metering—powered by partnerships with tech giants like Wirepas (RF mesh technology) and a fresh MoU with Guangxi Ramway Technology for local relay manufacturing.
So yes, while competitors flaunt fancy LEDs, HPL is selling intelligence—literally, through meters.
4. Financials Overview
| Metric | Q2 FY26 (Sep 2025) | Q2 FY25 (YoY) | Q1 FY26 (QoQ) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 434 | 422 | 383 | 2.8% | 13.3% |
| EBITDA (₹ Cr) | 66 | 61 | 58 | 8.2% | 13.8% |
| PAT (₹ Cr) | 22.3 | 22 | 18 | 1.3% | 23.9% |
| EPS (₹) | 3.46 | 3.35 | 2.87 | 3.3% | 20.6% |
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 ~5% are stable, suggesting operational discipline amid sector chaos. Smart meter execution is paying off, while lighting and consumer goods are merely flickering.
5. Valuation Discussion – Fair Value Range
Let’s do some back-of-the-envelope math, auditor-style:
- P/E Method:
EPS (TTM): ₹14.9
Industry P/E: 34.8
Fair Range = 25x – 35x → ₹372 – ₹522 - EV/EBITDA Method:
EV = ₹3,448 Cr, EBITDA (TTM) = ₹262 Cr
EV/EBITDA = 13.2x (sector avg ~14x)
Fair Range = ₹430 – ₹500 - DCF (Simplified):
Assuming 12% revenue CAGR, 14% margin, 10% cost of capital → ₹410 – ₹480
Fair Value Range (Educational Only): ₹370 – ₹520
Disclaimer: This fair value range is for educational purposes only and is not investment advice. But if you ever meet a retail investor who reads disclaimers, please introduce us.
6. What’s Cooking – News, Triggers, Drama
The year 2025 has been more dramatic for HPL than an Ekta Kapoor serial:
