HPL Electric Q1 FY27 Results (NSE: HPL)
Signal: Margin pressure
The read
The growth trajectory has broadened materially as C&I revenue rose 55.00% to ₹277.59 crore and consolidated revenue reached ₹515.24 crore, but the earnings trajectory weakened: gross margin contracted 771bps to 30.31%, EBITDA margin fell to 12.7%, and PAT grew only 1.3% despite 34.5% revenue growth. The key inflection is whether pricing and product-mix actions can reverse the input-cost-led margin compression while the ₹3,200+ crore order book supports continued scale.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹515.24 Cr | 34.5% | N/A |
| EBIT | ₹47.25 Cr | -0.8% | |
| Net profit | ₹18.67 Cr | 1.3% | |
| EPS | ₹2.9 | 1.0% | |
| EBIT margin | 12.7% |
P&L walk
Revenue rose 34.5% YoY to ₹515.24 crore, but COGS increased 51.27% and gross margin compressed to 30.31% from 38.03%; EBITDA grew only 10.4% to ₹65.34 crore as input-cost volatility and mix pressure offset scale, while EBIT fell 0.8% to ₹47.25 crore and PAT rose just 1.3% to ₹18.67 crore after depreciation increased 56.55%.
Segments
C&I was the principal growth engine, with revenue up 55.00% to ₹277.59 crore and share rising to approximately 54% from 47%, while its EBIT margin fell to 8.40% from 11.25%; Metering grew 16.53% to ₹237.65 crore and retained a stronger 17.67% EBIT margin.
Key positives
- Revenue reached a record Q1 level of ₹515.24 crore, up 34.5% YoY and remaining above ₹500 crore despite Q1 being described as seasonally lighter.
- C&I revenue grew 55.00% YoY to ₹277.59 crore, with Wires & Cables up 78.6% to ₹145.75 crore and Lighting & Electronics up 78.1% to ₹56.19 crore.
- The ₹3,200+ crore order book provides execution visibility, with more than 96% related to Metering, Systems & Services.
- Finance cost declined 2.32% YoY to ₹22.08 crore, partially offsetting the 56.55% increase in depreciation.
Key concerns
- Gross margin compressed 771bps YoY to 30.31% as COGS rose 51.27%, faster than revenue growth of 34.52%; the company says metals and industrial plastics were affected by input-cost volatility.
- EBITDA grew only 10.4% YoY to ₹65.34 crore versus revenue growth of 34.5%, and EBITDA margin fell 244bps to 12.7%, so the quarter did not meet the operating-leverage test.
- C&I growth came with EBIT-margin compression to 8.40% from 11.25%, suggesting that the fastest-growing platform currently has weaker earnings quality than Metering.
- PAT increased only 1.3% to ₹18.67 crore despite record revenue, reflecting limited operating conversion after gross-margin and depreciation pressure.
Research and educational content only. Not investment advice.