HBL Engineering Ltd. , a Hyderabad-based battery and power system company, witnessed a significant surge in its stock price following the announcement of strong quarterly results. The company's shares jumped 14.04% to Rs 684.00, reaching their highest level since December 20, 2024.

Impressive Financial Performance

HBL Engineering reported a remarkable increase in its consolidated net profit for the quarter, with figures rising 79% year-over-year to Rs 143.00 crore from Rs 80.00 crore. The company's revenue also saw a healthy growth of 15.7%, increasing to Rs 602.00 crore from Rs 520.00 crore in the previous year.

Key Financial Highlights

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed an impressive jump of 74%, reaching Rs 192.00 crore compared to Rs 110.00 crore in the same period last year. Notably, the profit margin expanded significantly from 21.2% to 31.9%, indicating improved operational efficiency.

Market Response and Trading Activity

The market responded positively to HBL Engineering's strong performance:

• Shares closed at Rs 684.00, marking a 14.04% increase
• Trading volume was 21 times the 30-day average
• The Relative Strength Index (RSI) stood at 72.84, suggesting overbought conditions

Analyst Outlook

Two analysts currently maintain buy ratings on HBL Engineering stock. Their average price target suggests a potential upside of 28.5% from the current levels.

Company Profile

HBL Engineering Ltd. is a diversified company serving various sectors globally, including:

• Defense
• Aviation
• Electric mobility
• Electronics
• Battery energy storage

The company's strong performance across these sectors has contributed to its impressive quarterly results.

As HBL Engineering continues to demonstrate robust growth in its financial metrics, investors and analysts alike will be watching closely to see if this positive momentum can be sustained in the coming quarters.

HBL Engineering Limited, formerly known as HBL Power Systems Limited, has reported robust financial results for the first quarter, with significant growth across key metrics. The company also announced the reappointment of its Chairman and Managing Director for another five-year term.

Strong Financial Performance

HBL Engineering witnessed a remarkable 88.2% year-on-year increase in net profit, which rose to ₹139.73 crore compared to ₹74.25 crore in the same quarter last year. The company's revenue from operations grew by 15% to ₹587.68 crore, up from ₹511.23 crore in the corresponding period.

The company's performance was further highlighted by a significant expansion in its EBITDA margin, which improved to 34.3% from 22% year-on-year, indicating enhanced operational efficiency.

Segment-wise Performance

All three of HBL Engineering's business segments contributed to the strong quarterly performance:

1. Industrial Batteries
2. Defence & Aviation Batteries
3. Electronics

Notably, the Electronics segment showed particularly improved profitability, contributing to the overall robust results.

Key Financial Highlights

Leadership Continuity

In a significant move ensuring leadership stability, the Board of Directors has reappointed Dr. Aluru Jagadish Prasad as the Chairman and Managing Director for another five-year term, effective from October 1, 2025. This appointment is subject to shareholder approval at the upcoming Annual General Meeting.

Dr. Prasad, who has been at the helm since the company's inception, brings a wealth of experience to his role. He holds a B.Tech from IIT Kharagpur, an MS in Management from MIT, USA, and a Doctorate in International Business from Columbia University, USA.

Other Key Announcements

1. Book Closure: The company has set book closure dates from September 13-25, 2025.
2. Record Date: September 12, 2025, has been fixed as the record date for e-voting eligibility and to determine shareholders' eligibility for receiving dividends, if declared at the Annual General Meeting.

HBL Engineering's strong Q1 performance, coupled with strategic leadership decisions, positions the company for continued growth in the industrial batteries, defence and aviation batteries, and electronics sectors. Investors and stakeholders will be keenly watching the company's future moves as it builds on this robust start to the fiscal year.