HBL Engineering Limited has received reaffirmed credit ratings from CARE Ratings Limited, maintaining its strong financial standing in the market. The rating agency issued the updated assessment on February 17, 2026, following a comprehensive review of the company's operational and financial performance.

Rating Reaffirmation Details

CARE Ratings Limited has reaffirmed HBL Engineering's credit ratings across its banking facilities. The rating review was conducted based on recent developments including the company's operational and financial performance for FY25 (Audited) and 9MFY26 (Unaudited).

Credit Facility Adjustments

The rating review accompanied significant adjustments in the company's credit facility structure. The changes reflect the company's strategic financial management and operational requirements.

The long-term bank facilities were reduced from ₹156.50 crore to ₹152.75 crore, while short-term facilities were enhanced from ₹587.00 crore to ₹646.00 crore. CARE Ratings withdrew ratings for project-specific working capital facilities that the company surrendered in full with no outstanding amounts.

Banking Partner Distribution

HBL Engineering maintains diversified banking relationships across multiple financial institutions. The company's total rated facilities of ₹798.75 crore are distributed among several banking partners.

Long Term Facilities (₹152.75 crore):

• State Bank of India: ₹65.00 crore (Cash Credit)
• Axis Bank Limited: ₹47.75 crore (Cash Credit + Term Loan)
• ICICI Bank Limited: ₹40.00 crore (Cash Credit)

Short Term Facilities (₹646.00 crore):

• Fund Based Limits: ₹95.00 crore (Purchase bill factoring)
• Non-Fund Based Limits: ₹551.00 crore (Letter of Credit/Bank Guarantee)

Regulatory Compliance

The company has fulfilled its regulatory obligations by informing stock exchanges about the rating update. HBL Engineering communicated the changes to BSE Limited and National Stock Exchange of India Limited on February 18, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The rating reaffirmation demonstrates HBL Engineering's continued financial stability and creditworthiness. CARE Ratings reserves the right to undertake surveillance and review of the rating from time to time, with at least one review annually based on circumstances warranting such assessment.

Source:

HBL Engineering delivered outstanding financial results for the quarter ended December 31, 2025, demonstrating strong operational performance across key business segments. The company's net profit surged 254% year-on-year to ₹217.69 crores, while revenue from operations grew 90% to ₹863.65 crores, reflecting robust demand and effective execution strategies.

Strong Financial Performance Across Metrics

The company's financial metrics showed consistent strength across all parameters during Q3FY26:

For the nine months ended December 31, 2025, the company maintained its growth momentum with net profit increasing 242% to ₹739.62 crores compared to ₹216.23 crores in the corresponding period last year. Revenue from operations rose 79% to ₹2,654.49 crores.

Segment-wise Performance Analysis

The Electronics segment emerged as the primary growth driver, contributing significantly to the company's exceptional performance:

The Electronics segment's remarkable growth of nearly 1000% year-on-year demonstrates the company's successful diversification and market penetration strategies. Industrial Batteries remained stable with marginal decline, while Defence & Aviation Batteries segment experienced a temporary slowdown.

Board Decisions and Strategic Initiatives

The Board of Directors approved several significant decisions during their meeting held on February 07, 2026:

Dividend Declaration:

• Interim dividend of ₹2 per equity share (200% on face value of ₹1)
• Record date fixed as February 13, 2026

Strategic Investment Proposals:

• Joint venture formation with Cochin Shipyard Limited
• Equity investment in Yaanendriya Private Limited (Bengaluru-based startup)
• Equity investment in Xalten Systems Private Limited (Kochi-based startup)

These investments reflect the company's commitment to expanding its technological capabilities and market presence through strategic partnerships and startup ecosystem engagement.

Operational Highlights and Cost Management

The company demonstrated effective cost management with total expenses increasing at a slower pace compared to revenue growth. Total expenses for Q3FY26 stood at ₹576.54 crores compared to ₹374.51 crores in Q3FY25, representing a 54% increase against 90% revenue growth.

Notable operational aspects include:

• Cost of materials consumed increased to ₹368.83 crores from ₹235.87 crores
• Employee benefit expenses rose to ₹79.18 crores from ₹44.31 crores
• Finance costs decreased to ₹2.31 crores from ₹4.34 crores

The company recognized ₹14.81 crores as additional past service cost under Employee Benefit Expenses due to New Labour Codes notified effective November 21, 2025.

Consolidated Performance

On a consolidated basis, HBL Engineering maintained similar growth trajectory with net profit increasing to ₹220.60 crores in Q3FY26 from ₹64.61 crores in Q3FY25. Consolidated revenue from operations grew to ₹874.04 crores from ₹450.56 crores, reflecting strong performance across the group including subsidiaries and associates.

The consolidated results include four subsidiaries (HBL America Inc., HBL Germany GmbH, Torquedrive Technologies Private Limited, and TTL Electric Fuel Private Limited) and two associates (Naval Systems & Technologies Private Limited and Tonbo Imaging India Limited).