HPL Electric & Power Limited , a leading manufacturer of electrical equipment, has reported a mixed set of financial results for the second quarter of fiscal year 2026. The company demonstrated resilience in its top-line performance while facing some pressure on margins.

Revenue Growth and Segment Performance

HPL Electric & Power saw its revenue from operations grow by 3% year-over-year to ₹434.45 crore in Q2 FY26, up from ₹422.32 crore in the same quarter last year. This growth was primarily driven by the Consumer & Industrial segment, which reported a robust 30% year-on-year increase, contributing ₹205.24 crore to the total revenue.

The Metering, Systems & Services segment, however, experienced a 13.32% decline in revenue, coming in at ₹229.20 crore for the quarter. The company attributed this decrease to slower project inspections and dispatch clearances during the monsoon season.

Profitability and Margins

Despite the revenue growth, HPL Electric & Power faced some pressure on its margins:

While the company managed to improve its EBITDA and maintain profitability, the growth in net profit did not keep pace with the revenue increase, indicating some margin pressure.

Segment-wise Performance

The Consumer & Industrial segment emerged as the standout performer, with its EBIT margin expanding from 10.30% to 10.98% year-on-year in Q2. This improvement reflects stronger operating leverage and an improved product mix.

The Metering, Systems & Services segment, despite the revenue decline, saw its EBIT margin improve to 17.52% in Q2 FY26 from 16.49% in Q2 FY25. The company cited pricing discipline, procurement efficiencies, and a higher share of smart-meter projects as factors contributing to this margin improvement.

Order Book and Future Outlook

HPL Electric & Power maintains a robust order book exceeding ₹3,300 crore, with approximately 99% comprising smart meters. This substantial order book provides long-term execution visibility and reinforces the company's leadership position in India's smart metering transformation.

The company expects smart metering to be a key growth driver going forward. Execution has already shown signs of improvement, with smart-meter offtake increasing by about 12% quarter-on-quarter in Q2. Management anticipates a further step-up in deliveries from November 2025 through March 2026 as on-ground inspections and clearances accelerate.

Management Commentary

Gautam Seth, Joint MD & CFO of HPL Electric & Power, commented on the results: "Our Q2 and H1 FY26 performance underscores the resilience of our model and an unmistakable tilt towards margin-led growth. While revenues were broadly stable, gross and EBITDA margins expanded further, with EBITDA holding above 15 percent and PAT margin around 5 percent."

He added, "The Consumer & Industrial franchise grew 30 percent in Q2 and 23 percent in H1, now accounting for about 47 percent of revenues, with wires & cables and domestic switchgear leading the way and our Lighting portfolio returning to healthy double-digit growth after a softer phase."

Conclusion

HPL Electric & Power has demonstrated its ability to grow revenue in a challenging environment, particularly through its Consumer & Industrial segment. While facing some margin pressure, the company's strong order book and focus on smart metering solutions position it well for future growth. Investors and analysts will be watching closely to see if the company can maintain its growth momentum while improving profitability in the coming quarters.

HPL Electric & Power Limited and Havells India Limited have reached a settlement in their long-standing trademark dispute, marking a significant development in the Indian electrical equipment industry. The agreement, executed on November 8, 2025, resolves all pending litigations related to the use of the 'HAVELLS' trademark.

Key Points of the Settlement

Parties Involved

• HPL Group: HPL Electric & Power Limited, its promoters, and promoter group companies (Havells Electronics Pvt Ltd., Havell's Private Limited, HPL India Limited)
• Havells Group: Havells India Limited and its promoter entity

Dispute Resolution

The settlement addresses all pending legal actions, including:

• Suits in the Delhi High Court
• Special Leave Petitions (SLPs) in the Supreme Court of India

Mediation Process

The Delhi High Court had referred these disputes to mediation, leading to this settlement.

Impact and Implications

1. Legal Clarity: The agreement brings clarity to the use of the 'HAVELLS' trademark, potentially ending years of legal uncertainty.

2. Business Operations: Both companies can now focus on their core business activities without the distraction of ongoing litigation.

3. Industry Precedent: This settlement may set a precedent for resolving similar trademark disputes in the Indian corporate sector.

Corporate Disclosure

HPL Electric & Power Limited disclosed this development to the stock exchanges on November 9, 2025, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

While the specific terms of the settlement remain undisclosed, this resolution is expected to have positive implications for both companies, allowing them to move forward without the burden of prolonged legal battles. Investors and industry observers will likely watch closely for any impact on the companies' market performance and brand strategies in the coming months.

As this settlement marks the end of a significant corporate dispute, it underscores the importance of intellectual property rights and trademark protection in India's growing electrical equipment sector.