HBL Engineering Limited (HBLENGINE)
₹833.15 +17.27% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, HBL Engineering's revenue was ₹638 Cr (+6.0% year on year, +5.6% on the previous quarter), and net profit ₹109 Cr (-23.8% year on year); the operating margin was 23.0%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹638 | +6.0% | +5.6% |
| Operating profit | ₹147 | -23.5% | +95.7% |
| Net profit | ₹109 | -23.8% | +70.5% |
| Operating margin | 23.0% | — | — |
HBLENGINE delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 9.42% of the HBLENGINE shares traded on NSE were taken to delivery, against the stock's own 20-session average of 37.27%. The price rose 17.27% on unusually low delivery, so more of the move than usual was intraday trading. It traded 20.5 times its average daily volume.
Delivery in the last 5 sessions: 40.7% · 40.0% · 39.7% · 47.0% · 9.4%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
CARE Ratings has upgraded HBL Engineering's long-term bank facilities (₹149.00 crore) from 'CARE A+; Positive' to 'CARE AA-; Stable' and reaffirmed short-term facilities (enhanced to ₹846.00 crore) at 'CARE A1+'. The upgrade is driven by HBL's successful business transition toward higher-margin railway electronics (Kavach), with FY26 TOI surging ~68% YoY to ₹3,326.41 crore. The company's total order book reached ~₹5,902 crore as of September 2026, with railway electronics (Kavach and TMS) contributing ~75% (₹4,440 crore). Furthermore, long-term bank term loans were withdrawn following full repayment.
- Long-term bank facilities rating upgraded to 'CARE AA-; Stable' from 'CARE A+; Positive' for ₹149.00 crore.
- Short-term bank facilities enhanced from ₹646.00 crore to ₹846.00 crore and reaffirmed at 'CARE A1+'.
- Order book expanded to ~₹5,902 crore as of September 2026 (from ₹2,999 crore in Dec 2025), representing ~1.77x TTM revenue.
- Railway electronics order backlog stands at ~₹4,440 crore (~75% of the total order book).
- FY26 Electronics segment revenue jumped to ₹1,626.25 crore with a 50.33% PBIT margin.
HBL Engineering Limited has fixed Friday, September 11, 2026, as the Record Date for determining shareholder eligibility for a recommended 100% dividend (Re 1 per equity share). The dividend is subject to shareholder approval at the 40th Annual General Meeting scheduled for September 26, 2026. The Register of Members and Share Transfer Books will remain closed from September 12 to September 26, 2026. Remote e-voting commences on September 23, 2026, and concludes on September 25, 2026.
- Recommended dividend rate: 100% (Re 1.00 per equity share)
- Record date and AGM cut-off date: Friday, September 11, 2026
- Book closure period: Saturday, September 12, 2026 to Saturday, September 26, 2026
- 40th Annual General Meeting scheduled date: Saturday, September 26, 2026
- Remote e-voting window: September 23, 2026 (9:00 AM) to September 25, 2026 (5:00 PM)
HBL Engineering Limited has announced September 11, 2026, as the record date for determining shareholder eligibility for a dividend and e-voting. This follows the Board's approval of the unaudited financial results for the quarter ended June 30, 2026. The dividend is subject to shareholder approval at the Annual General Meeting (AGM) scheduled for September 26, 2026. The company continues to exhibit strong fundamentals with a TTM PAT of ‡810 Cr and a very low debt-to-equity ratio of 0.03.
- Record date for dividend and e-voting eligibility is September 11, 2026
- Book closure period set from September 12, 2026, to September 26, 2026
- Annual General Meeting (AGM) scheduled for September 26, 2026
- Board meeting for Q1 FY27 results concluded at 04:15 PM on August 08, 2026
HBL Engineering reported a standalone revenue of ₹619.54 Cr for Q1 FY27, a 5.4% increase over Q1 FY26. However, Net Profit fell by 24.5% YoY to ₹105.47 Cr, primarily due to a sharp decline in the Defence & Aviation Batteries segment, where revenue dropped 48.5% to ₹37.93 Cr. The Electronics segment showed robust growth, increasing 26% YoY to ₹227.31 Cr. The company has fixed September 11, 2026, as the record date for dividend eligibility.
- Standalone Revenue from operations grew 5.4% YoY to ₹619.54 Cr.
- Net Profit after Tax declined 24.5% YoY to ₹105.47 Cr from ₹139.73 Cr in the previous year's quarter.
- Electronics segment revenue increased 26% YoY to ₹227.31 Cr, reflecting traction in railway safety systems.
- Defence & Aviation Batteries revenue saw a significant contraction of 48.5% YoY to ₹37.93 Cr.
- Record date for dividend and e-voting fixed for September 11, 2026.
HBL Engineering has secured a domestic contract worth Rs 31.49 Crores (excluding 18% GST) from Integral Coach Factory (ICF), Chennai. The order involves the supply, installation, testing, and commissioning of On-board KAVACH Loco equipment (Version 4.0). The project is scheduled for completion by March 31, 2028. While the order represents only ~0.96% of the company's TTM revenue of Rs 3,283 Cr, it reinforces HBL's strategic focus on Indian Railway safety infrastructure.
- Order value of Rs 31.49 Crores excluding 18% GST from ICF Chennai.
- Scope includes supply and commissioning of On-board KAVACH Loco equipment (Ver. 4.0).
- Execution timeline set for completion on or before March 31, 2028.
- Order represents approximately 0.96% of the company's TTM revenue of Rs 3,283 Cr.
HBL Engineering has approved the transition of Mrs. Kavita Prasad Aluru from a Non-Executive to an Executive Director role for a five-year term starting July 01, 2026. Mrs. Aluru, the daughter of the Chairman and Managing Director, has been on the board since 2000 and has over 20 years of experience with the company. This move formalizes her involvement in day-to-day operations as the company pursues 18-20% growth in railway and defense sectors. The appointment is subject to shareholder approval.
- Mrs. Kavita Prasad Aluru appointed as Executive Director for a fixed term of 5 years.
- The role change is effective from July 01, 2026, pending shareholder approval.
- Mrs. Aluru has been a member of the Board of Directors since the year 2000.
- The appointee is the daughter of the current Chairman and Managing Director, Dr. A J Prasad.
HBL Engineering Limited (formerly known as HBL Power Systems Limited) has submitted its annual disclosure under Regulation 31(4) of SEBI (SAST) Regulations for the financial year ended March 31, 2026. The promoter and promoter group, including key individuals like Dr. Aluru Jagadish Prasad and Aluru Kavita Prasad, have declared that no new encumbrances or pledges were created on their shares during the period. This filing confirms that the promoter shareholding remains free of undisclosed liens, maintaining transparency regarding the ownership structure.
- Annual compliance disclosure submitted under Regulation 31(4) of SEBI Takeover Regulations.
- Promoter group confirmed zero new encumbrances, directly or indirectly, for the financial year ended March 31, 2026.
- Major promoter Aluru Kavita Prasad holds 9,78,83,353 shares, accounting for 35.31% of the total share capital.
- Dr. Aluru Jagadish Prasad holds 2,69,28,723 shares, representing 9.72% of the company's equity.
HBL Engineering Limited has secured a major contract worth Rs. 1,714 Crores (excluding GST) from Chittaranjan Locomotive Works (CLW). The order involves the supply, installation, testing, and commissioning of On-board KAVACH Loco equipment (Ver.4.0). This project is expected to be completed within a 12-month timeframe, providing significant revenue visibility for the upcoming fiscal year. This win solidifies the company's leadership in the Indian Railways' safety and signaling technology sector.
- Received Letter of Acceptance from Chittaranjan Locomotive Works (CLW) for KAVACH systems.
- Total contract value stands at Rs. 1,714 Crores, excluding 18% GST.
- Scope includes supply, installation, and commissioning of On-board KAVACH Loco equipment (Ver.4.0).
- The entire contract is scheduled for completion within a 12-month period.
- The order represents a significant portion of the company's annual revenue, boosting the order book substantially.
HBL Engineering Limited (formerly HBL Power Systems) has submitted its quarterly statement of deviation or variation for the period ended March 31, 2026. The company confirmed that no fresh funds were raised through share issuances during the reporting quarter. Additionally, there were no deviations or variations in the utilization of proceeds from any previous fundraises. This filing is a routine regulatory requirement under SEBI (LODR) Regulations to ensure transparency in capital usage.
- Confirmed zero deviation or variation in the use of proceeds for the quarter ended March 31, 2026.
- No new funds were raised through shares during the reporting period.
- The Audit Committee reviewed and noted the 'Nil' status report on May 23, 2026.
- The filing complies with Regulation 32(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
HBL Engineering clarified that while FY26 overall performance improved significantly over FY25, Q4 FY26 saw a dip in profitability despite higher sales. This margin pressure was attributed to the variable nature of Kavach contracts and one-off expenses like R&D and labor code compliance. Management has provided a positive outlook for FY27, expecting sales and profits to be significantly higher than FY26. However, they cautioned about quarterly volatility due to project-based revenue and external macro factors like shipping costs and inflation.
- FY26 overall results showed significant improvement compared to FY25 performance
- Q4 FY26 profitability declined despite higher sales due to Kavach contract mix and R&D expenses
- Management projects FY27 sales and profits to be significantly better than FY26 levels
- Quarterly variability in FY27 expected due to Kavach business and macro-economic headwinds
- Investments in high-tech, high-margin segments expected to yield substantial results in the coming years
HBL Engineering (formerly HBL Power Systems) reported a stellar full-year performance for FY26, with net profit nearly tripling to ₹796.79 crore from ₹267.50 crore in FY25. Total income from operations grew by 67% YoY to reach ₹3,251.80 crore. While annual growth was robust, the Q4 FY26 performance saw a sequential decline in revenue and profit compared to Q3 FY26. The board has recommended a final dividend of ₹1 per share, representing a 100% payout on face value.
- Full-year Net Profit jumped 198% YoY to ₹796.79 crore in FY26.
- Total Income from operations for FY26 rose 67% to ₹3,251.80 crore compared to ₹1,946.13 crore in FY25.
- Recommended a final dividend of ₹1 per equity share (100% of face value Re. 1).
- Annual EPS increased significantly to ₹28.76 from ₹9.63 in the previous year.
- Q4 FY26 revenue stood at ₹597.31 crore, showing a sequential dip from ₹863.65 crore in Q3 FY26.
HBL Engineering Limited has bagged a domestic contract worth Rs 83.81 crore (inclusive of 18% GST) from Patiala Loco Works (PLW), Punjab. The order involves the supply, testing, and commissioning of On-board KAVACH equipment (Version 4.0), a critical safety system for Indian Railways. The project is slated for completion by April 15, 2027, providing clear revenue visibility for the company's railway electronics division over the next 12-18 months.
- Total contract value stands at Rs 83.81 Crores, including 18% GST.
- Order involves the supply and commissioning of the latest Version 4.0 On-board KAVACH equipment.
- The contract is awarded by Patiala Loco Works (PLW), a domestic government entity.
- Execution timeline is fixed with a completion deadline of April 15, 2027.
HBL Engineering Limited has secured a significant contract worth Rs 83.81 Crores (inclusive of 18% GST) from Patiala Loco Works (PLW), Punjab. The order involves the supply, testing, and commissioning of On-board KAVACH equipment (Version 4.0), a critical safety system for Indian Railways. The project is scheduled for completion by April 15, 2027. This win reinforces HBL's leadership in the railway safety technology segment and provides clear revenue visibility for the next fiscal year.
- Total contract value is Rs 83.81 Crores, which includes 18% GST.
- Order involves supply, testing, and commissioning of On-board KAVACH equipment (Ver. 4.0).
- The project is awarded by Patiala Loco Works (PLW), Punjab, a domestic entity.
- The contract execution timeline is set for completion on or before April 15, 2027.
- The transaction is not a related party transaction and involves no promoter interest.
HBL Engineering has executed a Joint Venture (JV) agreement with Cochin Shipyard Limited (CSL) to form 'Green Maritime Propulsion Private Limited'. The JV will focus on developing electric mobility technology and energy storage solutions for the maritime sector, targeting both domestic and global markets. HBL will hold a controlling 60% stake in the entity, which will be incorporated with an initial capital of Rs. 9 crore. This partnership leverages HBL's power systems expertise with CSL's maritime leadership to capitalize on sustainable shipping trends.
- Formation of JV 'Green Maritime Propulsion Private Limited' with an initial capital of Rs. 9 crore.
- HBL Engineering to hold 60% equity (Rs. 5.40 crore investment) and Cochin Shipyard to hold 40% (Rs. 3.60 crore).
- HBL will have management control with the right to nominate 3 out of 5 directors and the MD/CEO.
- The venture aims to develop indigenous electric and hybrid propulsion systems for the maritime industry.
- Strategic alignment with 'Aatmanirbhar Bharat' and global shifts toward sustainable maritime technologies.
HBL Engineering Limited, formerly known as HBL Power Systems Limited, held a physical one-on-one meeting with SBI Mutual Fund on March 18, 2026. The meeting took place in Mumbai as part of the company's regular investor relations engagement. The company explicitly stated that no unpublished price sensitive information (UPSI) was shared during the discussion. This disclosure is a routine compliance requirement under Regulation 30 of SEBI Listing Regulations.
- One-on-one physical meeting held with SBI Mutual Fund on March 18, 2026
- Company confirmed that only information already in the public domain was discussed
- No unpublished price sensitive information (UPSI) was shared during the session
- Disclosure made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015
Financial Performance
Revenue Growth by Segment
The Electronics segment showed the most significant growth, increasing 2.98x in FY24 due to railway signaling and Kavach orders. Overall revenue grew 18.2% YoY in Q1FY26 to INR 621.41 Cr, driven by the railway segment. Industrial batteries remain the primary revenue driver, while the telecom segment saw a marginal reduction in 9MFY25.
Geographic Revenue Split
Exports grew by 40% in FY25, supported by the addition of new OEM clients. While specific regional percentages are not provided, the company is a net exporter, which provides a natural hedge against foreign exchange fluctuations.
Profitability Margins
Profitability has seen a sharp upward trend: PAT margins improved from 7.15% in FY23 to 12.56% in FY24, and reached 23.06% in Q1FY26. This improvement is attributed to better sales realization in industrial batteries and higher-margin railway/export orders.
EBITDA Margin
PBILDT (EBITDA) margin significantly improved from 11.64% in FY23 to 19.19% in FY24. It further expanded to 21.96% in 9MFY25 and reached a peak of 34.04% in Q1FY26, representing a YoY increase of over 2,300 basis points from Q1FY25's 11.00%.
Capital Expenditure
The company is funding expansion through internal accruals, including setting up a Lithium-ion battery division and infrastructure for electronic fuzes. It prepaid ~INR 50 Cr of term loans in FY24. Scheduled repayment obligations for FY25 are INR 20.79 Cr.
Credit Rating & Borrowing
Long-term bank facilities are rated CARE A+ with a Positive outlook (revised from Stable in October 2025). Short-term facilities are rated CARE A1+. Borrowing costs are low due to negligible reliance on fund-based limits and a low debt-to-equity ratio of 0.06x.
Operational Drivers
Raw Materials
Lead (including Lead Calcium and Lead Sub-oxide) is the primary raw material, accounting for approximately 60% of total battery manufacturing costs. Total raw material costs represent 50% to 60% of the Total Operating Income (TOI).
Import Sources
Raw materials are sourced from both the domestic Indian market and through imports, though specific countries of origin are not detailed in the provided documents.
Key Suppliers
Not specifically named in the documents, but the company maintains integrated operations to manage multiple processes in-house.
Capacity Expansion
Current expansion includes setting up a new Lithium-ion battery division and infrastructure for electronic fuzes and charging hubs. Specific MTPA or unit capacity figures are not disclosed.
Raw Material Costs
Raw material costs fluctuate with global lead prices. The company faces risk from price escalations as lead is a volatile commodity, impacting margins if not passed through to customers.
Manufacturing Efficiency
Increased sales volume in industrial batteries has led to better cost optimization and operational efficiency, contributing to the margin expansion from 11.64% to 19.19% in FY24.
Strategic Growth
Expected Growth Rate
18-20%
Growth Strategy
Growth is targeted through the rollout of Vande Bharat trains and the implementation of Kavach (Train Collision Avoidance Systems). The company is also diversifying away from telecom reliance by expanding its export footprint (40% growth) and investing in new technologies like Lithium-ion and electronic fuzes.
Products & Services
Industrial batteries (Ni-Cad, Lead Acid), Defence and Aviation batteries (Silver Zinc, Submarine, Lithium), Railway Electronics (Kavach/TCAS, TMS, Signaling), and Electronic Fuzes.
Brand Portfolio
HBL Engineering (formerly HBL Power Systems).
New Products/Services
Launch of Lithium-ion batteries and Electronic Fuzes for the defence sector are expected to be major future revenue contributors.
Market Expansion
Expanding presence in the global OEM market for industrial batteries and increasing participation in Indian Railway's safety infrastructure upgrades.
Strategic Alliances
Investments in associate entities Tonbo Imaging India Private Limited and Naval Systems and Technologies Private Limited, totaling INR 86.71 Cr as of March 31, 2025.
External Factors
Industry Trends
The industry is shifting toward advanced railway safety systems and Lithium-ion technology. HBL is positioning itself by transitioning from traditional lead-acid batteries to electronics and advanced battery chemistries to capture the growing railway modernization market.
Competitive Landscape
Operates in an intensely competitive industry with volatile raw material costs, competing with both domestic and international battery and electronics manufacturers.
Competitive Moat
Moat is built on in-house developed technology, long-standing relationships with government entities (Railways/Defence), and high entry barriers due to stringent safety certifications (RDSO). These are sustainable due to the company's 30+ years of experience and established compliance track record.
Macro Economic Sensitivity
Highly sensitive to government spending on railway infrastructure (Kavach/Vande Bharat) and the health of the telecommunications sector.
Consumer Behavior
Shift in demand from telecom-led battery requirements to high-tech railway safety and defence electronics.
Geopolitical Risks
Trade barriers could affect the 40% export growth; however, the company's diversified sector exposure (Defence, Aviation, Railways) provides a buffer.
Regulatory & Governance
Industry Regulations
Operations are subject to stringent environmental regulations regarding lead toxicity and mandatory RDSO (Research Designs and Standards Organisation) approvals for all railway-related products.
Environmental Compliance
Strict adherence to pollution control norms for lead manufacturing. The company is ISO 14001:2015 and ISO 45001:2018 certified.
Legal Contingencies
No specific pending court case values provided; documents state the company has consistently maintained compliance with requisite standards.
Risk Analysis
Key Uncertainties
Volatility in lead prices (60% of cost) and potential delays in government project execution (Kavach) could impact revenue by more than 10-15% in a given fiscal year.
Geographic Concentration Risk
While expanding exports, a significant portion of revenue remains concentrated in the Indian domestic market, particularly government contracts.
Third Party Dependencies
Dependency on RDSO for product approvals and Indian Railways for order flow.
Technology Obsolescence Risk
Risk of traditional lead-acid batteries being replaced by newer chemistries; mitigated by the company's move into Lithium-ion and electronics.
Credit & Counterparty Risk
Strong receivables quality from reputed clients like Indian Railways and Indus Towers; liquidity is strong with INR 234 Cr in free cash/bank balances.
