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Industrials · Engineering & Construction
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Research updated
HBL Engineering Ltd.
NSE: HBLENGINEIndustrialsElectrical Equipment & Parts
- Last close
- ₹769.85
- Day change
- −₹14.60 (−1.86%)vs
- Market cap
- ₹23,094 crIndian rupees
- Research updated
- 1 report
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About HBL Engineering
HBL Engineering Ltd. is a prominent player in the engineering and manufacturing sector, primarily focused on the design and production of advanced technology solutions. The company has established its core expertise in the development of defense electronics, power electronics, and specialized batteries, catering to the needs of various industrial applications. HBL Engineering Ltd. plays a vital role in the defense sector, supplying critical components and systems that support military operations and national security initiatives. Additionally, the company serves the transportation, telecommunications, and energy sectors, providing innovative and reliable products that enhance operational efficiency and sustainability. With a commitment to technological advancement and quality manufacturing, HBL Engineering Ltd. is significant in advancing critical infrastructure and supporting industrial growth, both domestically and internationally. The company's impact on these sectors underscores its importance within the engineering industry and the broader financial markets.
- Sector
- Industrials
- Industry
- Electrical Equipment & Parts
- Listing
- NSE: HBLENGINE
- Next results
- Employees
- 2,455
- Headquarters
- Hyderabad, India
- ISIN
- INE292B01021
- Website
- hbl.in
Public research · Report of
Business model & financial foundation
HBL Engineering (NSE: HBLENGINE), Electrical equipment: industrial/defence batteries and railway safety electronics: revenue of ₹3,303 crore in FY26 (+67.9% on FY25), an EBITDA margin of 33.7%, net profit of ₹814.9 crore and net cash of ₹648.4 crore.
- Revenue, FY26 (₹ crore)
- 3,303
- consolidated
- Revenue growth, FY26
- +67.9%
- on FY25
- EBITDA margin, FY26
- 33.7%
- EBITDA excluding other income / revenue
- Net profit, FY26 (₹ crore)
- 814.9
- to owners
- Return on equity, FY26
- 44.1%
- on average equity
- Net debt, FY26 (₹ crore)
- -648.4
- Net debt (borrowings less cash, other bank balances, current investments)
- Market capitalisation (₹ crore)
- 19,533
- at the close of 16 Oct 2026
Company profile
HBL designs and manufactures industrial lead-acid, nickel-cadmium and lithium-ion batteries, defence/aviation power systems, and railway safety and control electronics including Kavach/TCAS, TMS and CTC. Its industrial profile combines electrochemistry manufacturing with safety-critical hardware/software engineering; battery-only vendor peer classifications understate railway electronics exposure. The primary analytical perimeter is consolidated; reported subsidiaries and associates are distinguished from dormant exclusions and the subsequent marine venture.
| Item | Value |
|---|---|
| Legal name | HBL Engineering Limited (formerly HBL Power Systems Limited) |
| Exchange and ticker | NSE: HBLENGINE; BSE: 517271 |
| ISIN | INE292B01021 |
| CIN | L40109TG1986PLC006745 |
| Sector | Industrials |
| Industry | Electrical equipment: industrial/defence batteries and railway safety electronics |
| Headquarters | Hyderabad, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | L N R Associates (since 2022-09-27) |
| Market capitalisation | ₹19,533 crore (16 Oct 2026) |
| Shares outstanding | 27.72 crore shares (FY26) |
| Price | ₹710.5 (close, 16 Oct 2026) |
| 52-week range | ₹613.0 - ₹1,122 (to 16 Oct 2026) |
| Website | https://hbl.in |
Corporate structure and shareholding
| Entity | Holding | Business |
|---|---|---|
| HBL Germany GmbH | 100% | Active consolidated overseas subsidiary; European/international operations (CARE description). |
| HBL America Inc. | 100% | Active consolidated overseas subsidiary; North American/international operations (CARE description). |
| Torquedrive Technologies Private Limited | 100% | Active consolidated subsidiary; manufacturing equipment and machinery (CARE description). |
| TTL Electric Fuel Private Limited | 60% | Active consolidated subsidiary; electric-vehicle charging infrastructure (CARE description). |
| SCIL Infracon Private Limited | 100% | Dormant; investment fully provided; excluded from FY26 consolidation. No current operating business established. |
| HBL Tonbo Private Limited | 51% | No commercial operations since inception; strike-off pending; investment fully provided; excluded from FY26 consolidation. |
FY26 associates, not subsidiaries: Naval Systems and Technologies 41%; Tonbo Imaging India 14.25% ownership/11.13% voting (S5 pp154-155,213-214,250). Green Maritime Propulsion, incorporated 11 Jun 2026 after FY26, agreed HBL 60%; AR labels conflict (JV/subsidiary/associate), and S2 says not consolidated in Q1FY27; not merged into FY26 perimeter. Xalten 9.84% became an associate in Q1FY27 (S2). No corporate parent established. Business descriptions use S28 p5.
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 59.11% | 59.11% | 59.11% | |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | |
| Foreign institutions | 5.87% | 5.94% | 5.62% | |
| Domestic institutions | 0.82% | 0.79% | 0.98% | |
| of which mutual funds | 0.35% | 0.38% | 0.32% | |
| Retail | 26.41% | 27.29% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
HBL Engineering is a consolidated industrial battery, defence/aviation power and electronics supplier. Industrial batteries provide a more stable base; Kavach locomotive/trackside and TMS acceptance drives the volatile electronics arm. Certification is an entry barrier, not control of railway locomotive availability. Revenue is recognised over time using input estimates; audit KAM addresses these judgments. Private Medha and trial-stage entrants cannot be treated as interchangeable approved public peers.
| Segment | revenue, FY26 (₹ crore) | Share | ebit, FY26 (₹ crore) | Share |
|---|---|---|---|---|
| Industrial Batteries | 1,416 | 42.8% | 341.2 | 29.9% |
| Defence & Aviation Batteries | 211.6 | 6.4% | 57.6 | 5.1% |
| Electronics (Kavach, TMS, defence electronics/fuzes) | 1,626 | 49.1% | 818.5 | 71.8% |
| Unallocated (EV and other activities below threshold) | 57.3 | 1.7% | -78.0 | -6.8% |
Segments as the company reports them (consolidated); each share is of the segments' sum.
| Peer | Why the dossier compares them |
|---|---|
| Kernex Microsystems (India) Limited (KERNEX) | Closest listed Kavach/TCAS railway-safety comparator; customer, approval and execution exposures overlap. Narrower product mix than HBL. |
| Quadrant Future Tek Limited (QUADFUTURE) | Emerging Kavach and signalling competitor plus speciality cables. Aug 2026 primary disclosure still describes passenger trials before final certification; not equated to a fully approved OEM. |
| Siemens Limited (SIEMENS) | Rail automation/interlocking and industrial-automation benchmark; diversified, not a Kavach pure play. Indian Siemens Ltd, not Siemens Energy; demerger comparability requires checking. |
| Exide Industries Limited (EXIDEIND) | |
| Amara Raja Energy & Mobility Limited (ARE&M) | |
| Bharat Electronics Limited (BEL) | Defence/aviation and safety-critical electronics procurement comparator; diversified PSU electronics, not a like-for-like battery or Kavach supplier. |
| High Energy Batteries (India) Limited | Specialised defence/aviation NiCd and silver-zinc batteries; closer electrochemistry overlap but much smaller and less liquid. BSE-only HIGHENE, no NSE listing found. |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations | 1,213 | 1,369 | 2,233 | 1,967 | 3,303 |
| Cost of revenue (vendor classification) * | 893.7 | 981.6 | 1,485 | 1,227 | 1,633 |
| Other operating costs (vendor classification) * | 98.6 | 122.5 | 163.0 | 165.1 | 293.4 |
| EBITDA (vendor classification) * | 154.7 | 170.2 | 457.1 | 427.0 | 1,185 |
| Operating EBIT excl other income and exceptional items | 126.7 | 135.5 | 382.2 | 347.9 | 1,062 |
| Finance cost | 4.33 | 5.68 | 12.9 | 13.0 | 14.7 |
| Profit before tax and before associates | 122.4 | 129.8 | 359.1 | 359.9 | 1,075 |
| Tax | 28.7 | 31.4 | 96.4 | 97.4 | 273.0 |
| Profit after tax before associates | n.r. | n.r. | 262.7 | 262.6 | 802.4 |
| Reported diluted EPS on issuer comprehensive-income basis (₹) | 3.39 | 3.55 | 10.07 | 9.96 | 29.37 |
| Materials incl traded goods and inventory change | 1,150 | 970.9 | 1,382 | ||
| Employee benefits expense | 157.6 | 179.1 | 258.2 | ||
| Other operating expenses | 502.5 | 425.3 | 550.0 | ||
| EBITDA excluding other income | 423.5 | 392.0 | 1,113 | ||
| Other income | 17.9 | 26.1 | 59.0 | ||
| Depreciation and amortisation | 41.3 | 44.2 | 50.6 | ||
| Exceptional items (income+, expense-) | -28.1 | -0.98 | -31.3 | ||
| Share of profit or loss of associates | 17.7 | 13.9 | 12.0 | ||
| Non-controlling share of profit or loss | -0.54 | -0.44 | -0.44 | ||
| Profit attributable to owners | 280.9 | 276.9 | 814.9 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Equity attributable to owners | 865.8 | 951.5 | 1,221 | 1,483 | 2,214 |
| Borrowings (current + non-current, excl. leases) | 62.6 | 86.0 | 58.4 | 54.7 | 44.0 |
| Cash and cash equivalents | 49.7 | 132.0 | 223.5 | 117.0 | 528.2 |
| Trade receivables | 292.7 | 312.0 | 382.1 | 373.3 | 646.1 |
| Inventories | 307.0 | 336.3 | 432.7 | 533.6 | 562.1 |
| Trade payables | 87.6 | 98.3 | 130.5 | 181.2 | 184.9 |
| Property, plant and equipment | n.r. | n.r. | 338.5 | 373.4 | 417.4 |
| Capital work in progress | 42.9 | 25.9 | 20.4 | 68.2 | 127.5 |
| Total assets | 1,133 | 1,294 | 1,654 | 1,980 | 2,942 |
| Net debt (borrowings less cash, other bank balances, current investments) | -168.6 | -648.4 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash from operations | 38.3 | 122.4 | 273.1 | 246.7 | 738.4 |
| Free cash flow (vendor definition) * | -5.66 | 58.6 | 219.9 | 117.5 | 588.1 |
| Dividends paid (outflow negative) | -9.70 | -12.5 | -13.9 | -83.2 | |
| Gross fixed asset purchases including CWIP (outflow negative) | -21.4 | -54.2 | -53.2 | -121.7 | -150.3 |
| CFO less gross capex | 219.9 | 125.1 | 588.1 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Shares outstanding | 27.72 | 27.72 | 27.72 | 27.72 | 27.72 |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 521.0 | 450.6 | 475.6 | 601.8 | 1,223 | 874.0 | 604.1 | 638.0 |
| Cost of revenue (vendor classification) * | 259.7 | 216.4 | 493.3 | 260.0 | 447.2 | 364.0 | 310.5 | 309.0 |
| Other operating costs (vendor classification) * | 108.6 | 94.0 | -265.2 | 95.9 | 153.8 | 126.3 | 159.1 | 114.9 |
| EBITDA (vendor classification) * | 120.8 | 95.1 | 95.2 | 211.5 | 559.8 | 312.9 | 87.7 | 167.3 |
| Finance costs | 2.79 | 4.65 | 3.69 | 6.35 | 3.46 | 2.59 | 2.29 | 5.41 |
| Profit before tax | 106.9 | 79.2 | 70.6 | 190.5 | 520.4 | 297.1 | 67.5 | 149.5 |
| Tax expense | 30.9 | 20.8 | 18.3 | 48.7 | 133.1 | 79.5 | 11.7 | 38.5 |
| Profit after tax before associates | 76.0 | 58.4 | 52.3 | 141.8 | 387.3 | 217.6 | 55.8 | 110.9 |
| Diluted EPS (₹) | 3.13 | 2.31 | 1.66 | 5.17 | 13.96 | 7.95 | 2.32 | 3.95 |
| Materials consumed incl. traded goods and inventory change | 259.7 | 216.4 | 237.0 | 260.0 | 447.2 | 364.0 | 310.5 | 309.0 |
| Employee benefits expense | 44.1 | 46.6 | 48.6 | 54.0 | 77.8 | 81.3 | 45.1 | 67.4 |
| Other expenses | 108.6 | 94.0 | 110.5 | 95.9 | 153.8 | 126.3 | 173.9 | 114.9 |
| EBITDA (revenue less materials, employee, other exp; excl other income) | 108.5 | 93.6 | 79.5 | 191.9 | 544.1 | 302.4 | 74.7 | 146.7 |
| Other income | 12.2 | 1.54 | 6.84 | 19.6 | 15.8 | 10.5 | 13.0 | 20.6 |
| Depreciation and amortisation | 11.3 | 11.2 | 10.9 | 11.5 | 12.2 | 12.3 | 14.6 | 12.4 |
| Exceptional items (income +, expense -) | 0.19 | -0.04 | -1.09 | -3.11 | -23.9 | -0.97 | -3.32 | -0.01 |
| Share of profit/(loss) of associates | 11.1 | 6.28 | -7.58 | 1.51 | -0.02 | 2.54 | 7.98 | -1.77 |
| Non-controlling interest share of profit | -0.19 | 0.06 | -0.21 | 0.08 | -0.02 | -0.51 | 0.01 | 0.06 |
| Profit attributable to owners | 87.3 | 64.6 | 45.0 | 143.3 | 387.3 | 220.6 | 63.7 | 109.1 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 35.6% | 12.9% | 63.2% | -11.9% | 67.9% |
| EBITDA margin | 19.0% | 19.9% | 33.7% | ||
| Net margin | 12.6% | 14.1% | 24.7% | ||
| Return on equity | 25.9% | 20.5% | 44.1% | ||
| Return on capital employed | 14.2% | 13.8% | 33.0% | 24.7% | 56.0% |
| Return on assets | 19.1% | 15.2% | 33.1% | ||
| Net debt (₹ crore) | -168.6 | -648.4 | |||
| Net debt / EBITDA | -0.43x | -0.58x | |||
| Interest cover | 29.3x | 23.9x | 29.5x | 26.7x | 72.3x |
| Asset turnover | 1.12x | 1.13x | 1.52x | 1.08x | 1.34x |
| Receivable days | 88 | 83 | 62 | 69 | 71 |
| Inventory days (on revenue) | 92 | 90 | 71 | 99 | 62 |
| Payable days (on revenue) | 26 | 26 | 21 | 34 | 20 |
| Cash conversion | 0.97x | 0.89x | 0.91x | ||
| Capex intensity | 1.8% | 4.0% | 2.4% | 6.2% | 4.6% |
| Free cash flow (₹ crore) | 16.9 | 68.2 | 219.9 | 125.1 | 588.1 |
| Dividend payout | 4.4% | 5.0% | 10.2% | ||
| EPS, diluted (₹) | 3.39 | 3.55 | 10.07 | 9.96 | 29.37 |
| Book value per share (₹) | 31.23 | 34.32 | 44.03 | 53.49 | 79.88 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA excluding other income / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on capital employed: EBIT / average equity plus borrowings.
- Return on assets: net profit to owners / average total assets.
- Net debt (₹ crore): Net debt (borrowings less cash, other bank balances, current investments); negative is net cash.
- Net debt / EBITDA: net debt / EBITDA excluding other income.
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Reported diluted EPS on issuer comprehensive-income basis).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 1, information to 16 Oct 2026); market data at the close of 16 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on HBL Engineering includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on HBL Engineering
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Prices are the last close on the NSE, 23 Oct 2026. Research from Mool’s report of 16 Oct 2026; page updated 25 Oct 2026.
Mool’s research is written by AI agents and published by Mool Capital Private Limited, a SEBI-registered Research Analyst, registration INH000012449, which is responsible for it. This page shows factual company information and an excerpt of that research; it carries no rating and is not investment advice for any individual. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Read the disclosures.