A Rs 1 lakh investment in HBL Power Systems nearly seven years ago would have grown to more than Rs 53 lakh as the company transformed from a battery-focused engineering business into a broader technology company spanning railway electronics, industrial batteries, defence systems and electric drive trains.
Shares of HBL Engineering, which traded at around Rs 15 apiece on the NSE back in mid of 2019, are now trading around Rs 800.
This multibagger run by HBL Engineering shares comes with an underlying change in the entire business of the company. In 2019-20, HBL was dealing with falling telecom demand, which had a direct impact on its largest battery business.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The company reported consolidated revenue from operations of Rs 1,091.78 crore and profit after tax of Rs 26.2 crore in FY20. Since then, in FY26, consolidated revenue of the company reached Rs 3,302.83 crore, while profit after tax stood at Rs 814.9 crore.
So, the multibagger return of around 5,233% delivered by HBL Engineering stock price came along with a 3,000% plus growth in the profits of the company and a 200% jump in the revenue in these seven years.
From Telecom Batteries To Technology Gaps
HBL's transformation is also a story of a deliberate shift away from businesses where growth and margins were under pressure.
In FY20, telecom batteries were a major part of the business, and the company said the deterioration in the telecom sector had reduced demand. At the same time, HBL began putting greater resources into electronics, defence and niche battery products.
That strategy is visible in the company's current business structure. HBL now operates nine business units across three broad segments: industrial electronics, industrial batteries and defence. Its stated model is to identify technology gaps, develop products internally and target niche markets where engineering capability can create a competitive advantage.
Kavach Became A Major Growth Engine
Railway electronics has become one of the biggest changes in HBL's earnings profile.
HBL Engineering pioneered the Kavach system along with RDSO and currently is the market leader in execution of contracts received. The company also has TMS and Centralised Traffic Control capabilities, with less than 2% of the railway network currently covered by TMS.
The segment numbers underline the shift. In FY26, electronics generated Rs 1,626.25 crore of revenue and Rs 818.49 crore of segment profit, making it the largest profit contributor among HBL's reported segments.
Also Read: Railway Safety Gets A Boost As Kavach 4.0 Commissioned On South Central Railway
Batteries Still Matter, But The Mix Has Changed
Industrial batteries generated Rs 1,416.22 crore of revenue in FY26, while defence and aviation batteries contributed Rs 211.58 crore. In the June quarter of FY27, industrial battery revenue increased to Rs 361.94 crore, while electronics revenue stood at Rs 227.31 crore.
The next potential business is electric drive trains for heavy trucks and maritime. HBL has developed the complete system in-house, including motors, batteries, electronics and the battery-management system. The company says road trials have covered about 40,000 km, with homologation for 55-tonne trucks expected by March 2027 and pilot sales targeted from July 2027.
FY27 Starts With A Mixed Quarter
HBL's June quarter consolidated revenue from operations rose to Rs 638.03 crore from Rs 601.77 crore a year earlier. However, profit after tax fell to Rs 109.14 crore from Rs 143.35 crore, reflecting the quarter-to-quarter volatility in the company as well.
For investors looking at the next phase of the growth story of HBL Engineering, the numbers point to three businesses driving the transformation, which are Kavach and railway electronics, specialised batteries, and new technology-led products such as electric drive trains.
Also Read: 425% Return In Three Years: PC Jewellers Achieves Debt-Free Status. A Look At Journey On Rocky Road
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
