HBL Engineering Reports 204% FY26 PAT Growth; Share Price Slip 2% Despite Strong Annual Performance

On Monday, the Indian equity benchmarks traded higher during the session, with the benchmark Nifty 50 index rising 0.98 per cent to 23,954.65. Defence and electronics stocks remained in focus following quarterly earnings announcements. In this segment, HBL Engineering's share price declined 2.02 per cent to Rs 759 despite the company reporting strong FY26 earnings growth led by its electronics business segment.

HBL Engineering Q4FY26 Performance

HBL Engineering Limited reported consolidated sales from operations of Rs 604.12 crore during Q4FY26 as against Rs 475.58 crore reported in Q4FY25, registering a growth of around 27 per cent YoY. Total income stood at Rs 617.15 crore during the quarter compared to Rs 482.41 crore reported in the corresponding quarter previous year.

Quarterly profitability remained muted during the period. Profit before Tax declined 4.5 per cent YoY to Rs 67.45 crore from Rs 70.63 crore reported in Q4FY25. Net profit after tax came in at Rs 52.03 crore during the quarter as against Rs 52.32 crore reported in the corresponding quarter previous year. Earnings per share stood at Rs 2.32 during Q4FY26 compared to Rs 1.66 reported in Q4FY25.

Segment-Wise Performance

During Q4FY26, revenue from the Industrial Batteries segment declined 4.1 per cent YoY to Rs 344.62 crore. Defence & Aviation Batteries revenue increased 49.7 per cent to Rs 69.05 crore, while Electronics segment revenue surged 230 per cent YoY to Rs 178.93 crore.

HBL Engineering FY26 Performance

For the financial year ended March 31, 2026, HBL Engineering reported consolidated sales from operations of Rs 3,302.83 crore as against Rs 1,967.20 crore reported in FY25, registering a growth of around 67.9 per cent YoY. Total income stood at Rs 3,361.82 crore during FY26 compared to Rs 1,993.29 crore reported in the previous financial year.

Profit before tax nearly tripled during FY26, rising 198.8 per cent YoY to Rs 1,075.41 crore from Rs 359.94 crore reported in FY25. Net profit after tax surged 204 per cent YoY to Rs 798.10 crore as against Rs 262.57 crore reported in the previous financial year.

The electronics segment remained the key growth driver for the company during FY26, with segment revenue surging 476.4 per cent YoY to Rs 1,626.25 crore from Rs 282.15 crore reported in FY25.

Exceptional Items

Exceptional items during FY26 stood at Rs 31.25 crore. The company recognised Rs 26.49 crore towards unrecoverable costs incurred during development of high-performance batteries for torpedoes. Additionally, HBL Engineering recognised an estimated Rs 25.49 crore impact related to newly notified Labour Codes under other expenses.

About HBL Engineering

HBL Engineering Ltd, formerly known as HBL Power Systems Limited, designs, develops and manufactures specialised batteries, electronics and engineering products for industrial, Railway, aviation and defence sectors.

Headquartered in Hyderabad, the company operates across 59 countries and has manufacturing facilities in India and overseas through subsidiaries and associate companies.

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Disclaimer: This article is for informational purposes only and not investment advice.