Company Overview – HPL Electric & Power Limited
HPL Electric & Power Limited (NSE: HPL, BSE: 540136) is a four-decade-old electrical equipment maker operating across five verticals — metering, modular switches, switchgears, LED lighting, and wires & cables. It holds about a 50% share of domestic on-load changeover switches and roughly 20% of electric meters, and is a preferred vendor to most active smart-metering (AMISP) projects in India. Headquartered in Sonipat, it listed in October 2016 and exports to 40-plus countries. This makes HPL Electric & Power a capex-led industrial growth story, with smart metering as its primary near-term driver.
HPL Electric & Power Financial Analysis
In FY2025-26, HPL Electric & Power grew consolidated revenue 6.5% to Rs 1,811.10 Cr, but net profit slipped 2.9% to Rs 91.01 Cr as depreciation and finance costs rose. Return ratios remain modest (ROE ~10%, ROCE ~13.5%).
Consolidated Revenue (FY26)
Rs 1,811.10 Cr
Net profit Rs 91.01 Cr | EPS Rs 14.15
Standalone Net Profit (FY26)
Rs 83.06 Cr
Standalone EPS Rs 12.92 | Face value Rs 10
HPL Electric & Power Dividend History Table
| Financial Year | Dividend/Share | Record Date | Payment Date |
|---|---|---|---|
| FY 2025-26 | Rs 1.00 | 17 Sep 2026 | Within 30 days of AGM |
| FY 2024-25 | Rs 1.00 | 22 Sep 2025 | 29 Oct 2025 |
| FY 2023-24 | Rs 1.00 | 23 Sep 2024 | 30 Oct 2024 |
| FY 2022-23 | Rs 1.00 | 23 Sep 2023 | 30 Oct 2023 |
| FY 2021-22 | Rs 0.15 | 23 Sep 2022 | 30 Oct 2022 |
| FY 2020-21 | Rs 0.15 | 23 Sep 2021 | 30 Oct 2021 |
| FY 2019-20 | Rs 0.15 | 23 Sep 2020 | 30 Oct 2020 |
| FY 2018-19 | Rs 0.20 | 19 Sep 2019 | 26 Oct 2019 |
| FY 2017-18 | Rs 1.00 | 20 Sep 2018 | 27 Oct 2018 |
| FY 2016-17 | Rs 1.50 | 20 Sep 2017 | 28 Oct 2017 |
HPL Electric & Power has paid a dividend every year since listing. Amounts were cut to Rs 0.15 through FY20-FY22, then restored to Rs 1.00 for the last four years. No special dividends.
HPL Electric & Power Expert Commentary
The headline "10% dividend" from HPL Electric & Power is a face-value figure — the real yield at the current price of Rs 280 is only 0.36%. The rupee payout has been frozen at Rs 1 for four years even as profit multiplied, which tells you management's priority is reinvestment, not distribution. The genuinely positive signal in FY26 is operational: EBITDA grew faster than revenue. The genuinely cautionary one is that profit still fell, because depreciation surged 50% and borrowings rose. For readers, the practical read is simple — treat HPL as a growth stock, and judge it on execution, not on the dividend.
HPL Electric & Power Future Outlook
HPL Electric & Power's near-term outlook rests on smart metering and its stated goal of scaling the consumer & industrial segment. Q1FY27 revenue was a record ~Rs 515 Cr, and India Ratings has affirmed a stable outlook on a healthy order book. The swing factor is whether heavy capex — visible in the 50% jump in depreciation — converts into margins and free cash flow, and whether working capital and debt are contained. If execution holds, earnings can re-accelerate; if collection cycles stretch, the current thin free cash flow persists. Dividend policy is likely to stay token while the company reinvests.
Dividend Snapshot – HPL Electric & Power Limited
HPL Electric & Power has recommended a final dividend of Rs 1.00 per share (10% on Rs 10 face value) for FY2025-26. At the current price of Rs 280, the real dividend yield is just 0.36%. This is a growth stock paying a token dividend, not an income stock.
Dividend Per Share
Rs 1.00
Final dividend (10% on Rs 10 face value)
Dividend Yield (CMP Rs 280)
0.36%
Announcement-date yield 0.27% (Rs 372.30)
Record Date
17 Sep 2026
Eligibility cut-off fixed by company
Total Dividend Outflow
Rs 6.43 Cr
Rs 1 x 6.43 crore shares; ~7% of profit
HPL Electric & Power Dividend Announcement Summary
The Board of HPL Electric & Power met on 27 May 2026 and recommended a final dividend alongside audited FY26 results. It is subject to shareholder approval at the AGM on 24 September 2026, and will be credited within 30 days of the AGM.
What the board approved
- Final dividend of Rs 1.00 (10%) per Rs 10 share
- For financial year 2025-26
- Auditor M/s. Sakshi & Associates — unmodified opinion
Company identifiers
- NSE: HPL | BSE: 540136
- ISIN: INE495S01016
- Type: Final Dividend
HPL Electric & Power Dividend — Key Dates Timeline
Announcement / Board Meeting
27 May 2026
Record Date
17 September 2026
Ex-Dividend Date
17 September 2026 (inferred)
AGM
24 September 2026
Payment / Credit
Within 30 days of AGM
Expected ~24 Oct 2026; exact date Not Disclosed by Company
Financial Year
FY 2025-26
Under India's T+1 settlement, the ex-date typically coincides with the record date. We show 17 September 2026 in line with HPL's history, but this is inferred pending the official NSE/BSE circular. Buying on the ex-date does not confer eligibility.
HPL Electric & Power Dividend Yield Analysis
The "10% dividend" is calculated on the Rs 10 face value, not the market price. What matters is the yield on the price you actually pay — and that is just 0.36%.
The face-value illusion
- "%" on face value: 10% (Rs 1 on Rs 10)
- Real yield at CMP Rs 280: 0.36%
- Yield at announcement (Rs 372.30): 0.27%
Why the yield "rose"
The yield rose from 0.27% to 0.36% only because the share price fell ~25% since May. A higher yield here signals a weaker price, not a bigger dividend — the payout is unchanged at Rs 1.
Even after a ~43% one-year fall, HPL Electric & Power yields well below the Industrials sector norm of ~1.2-1.3%.
HPL Electric & Power Dividend History Analysis
HPL Electric & Power is a consistent but low and cyclical payer. It has never missed a year since listing, but it cut the dividend sharply to Rs 0.15 during the weak FY20-FY22 stretch and has since held it flat at Rs 1.00 for four years — even as profit multiplied.
What the pattern shows
- No suspension; payment continuity intact
- Cut to Rs 0.15 in FY20-FY22, then restored
- No special dividends; peak was Rs 1.50 (FY17)
Classification
Dividend growth has not tracked profit growth. The flat Rs 1 payout against sharply higher earnings confirms a deliberate low-payout, reinvestment-first policy.
HPL Electric & Power Financial Performance & Operating Leverage
FY26 is a case of revenue and operating profit rising while net profit fell — the key to understanding both the share-price drop and the token dividend. Figures are consolidated.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue | Rs 1,811.10 Cr | Rs 1,700.24 Cr | +6.5% |
| EBITDA (approx.) | Rs 280.8 Cr | Rs 259.5 Cr | +8.2% |
| Finance cost | Rs 94.11 Cr | Rs 89.72 Cr | +4.9% |
| Depreciation | Rs 63.23 Cr | Rs 42.16 Cr | +50.0% |
| Net profit (owners) | Rs 91.01 Cr | Rs 93.77 Cr | -2.9% |
| EPS | Rs 14.15 | Rs 14.58 | -2.9% |
Operations improved — EBITDA (+8.2%) outgrew revenue (+6.5%). The drag was below EBITDA: depreciation jumped 50% as capex hit the P&L, finance costs rose ~5%, and a Rs 5.45 Cr exceptional charge (mainly new Labour Code liabilities) weighed on profit.
HPL Electric & Power Cash Flow Analysis
Cash is fact where profit is opinion — and here HPL Electric & Power looks healthier on cash. FY26 operating cash flow was strong and rising even as reported profit dipped.
Operating Cash Flow (FY26)
Rs 226.48 Cr
Up from Rs 138 Cr; well above Rs 91 Cr profit
Free Cash Flow (FY26)
~Rs 10.3 Cr
Thin — capex absorbed most operating cash
Operating cash flow covers the Rs 6.43 Cr dividend 35 times over, so it is funded from current earnings — not reserves or borrowing. Free cash flow is thin only because ~Rs 180 Cr went into plant & equipment. Integrity check: our computed outflow (Rs 6.43 Cr) exactly matches the "Payment of dividend Rs 6.43 Cr" line in the FY26 cash-flow statement. Watch receivables, up ~Rs 51 Cr.
HPL Electric & Power Balance Sheet Strength
HPL Electric & Power carries meaningful debt, and it grew in FY26 to fund working capital and capex — the key context for judging the dividend.
Total Borrowings (FY26)
Rs 749.75 Cr
Up from ~Rs 632.79 Cr
Cash & Bank
Rs 81.16 Cr
Net debt ~Rs 668.59 Cr; net D/E ~0.67x
HPL is paying a dividend while borrowings rise, but the payout is so tiny (Rs 6.43 Cr vs Rs 750 Cr debt) it barely moves the balance sheet. It confirms growth-first priorities. ROE is ~10%, ROCE ~13.5%, with a long cash-conversion cycle (debtor days ~154).
HPL Electric & Power Dividend Sustainability
Across four coverage tests, the HPL Electric & Power dividend passes comfortably — because the payout is so small.
| Coverage Test | Ratio | Verdict |
|---|---|---|
| Earnings (EPS 14.15 / DPS 1) | 14.2x | Very strong |
| Operating cash flow | 35.2x | Very strong |
| Free cash flow | 1.6x | Adequate |
| Cash & bank | 12.6x | Very strong |
Verdict: Sustainable. There is essentially no risk of this Rs 1 dividend being unaffordable. The honest caveat: it is so small that "sustainable" barely matters — the real point is that HPL chooses to keep distributions token to reinvest in growth.
HPL Electric & Power Peer Comparison
Against the broader Industrials space, HPL Electric & Power is a low-yield, mid-return name. Figures are directional.
| Metric | HPL Electric & Power | Industrials (typical) |
|---|---|---|
| Dividend yield | 0.36% | ~1.2-1.3% |
| Payout ratio | ~7% | 20-35% |
| ROE | ~10% | 12-18% |
| ROCE | ~13.5% | 15-20% |
| Net D/E | ~0.67x | Many peers lower |
HPL's ~7% payout is well below the typical 20-35% for established peers, and its yield is roughly a third of the sector norm. Large-cap names like Havells, Polycab and KEI offer higher returns on capital. Re-verify against latest data.
HPL Electric & Power Promoter Impact Analysis
With promoters owning nearly three-quarters of HPL Electric & Power, most of the dividend flows to the promoter family — but the small total keeps the rupee benefit modest for everyone.
Promoter Holding
72.66%
Promoter income: ~Rs 4.67 Cr
Public Shareholding
26.50%
Public income: ~Rs 1.70 Cr
A low payout with high promoter ownership means promoters are leaving profits inside the business rather than extracting cash — aligning with reinvestment. For minority holders, returns rest almost entirely on share-price appreciation, not dividends.
HPL Electric & Power Dividend Taxation
Since April 2020, dividends are taxed in the investor's hands at the applicable slab rate, added as "income from other sources."
The rules in brief
- Taxed at your slab rate
- TDS 10% if dividend from the company exceeds Rs 10,000/year (20% without PAN)
- NRIs: 20% TDS plus surcharge/cess, subject to DTAA
Worked example (1,000 shares)
- Gross: Rs 1 x 1,000 = Rs 1,000
- TDS: Nil (below Rs 10,000)
- Tax at 30% slab: Rs 300; net Rs 700
- Post-tax yield at Rs 280: ~0.25%
You would need over 10,000 shares for this dividend alone to cross the TDS threshold. Consult a tax adviser for your situation.
HPL Electric & Power — Key Risks
- 1. Rising debt while reinvesting: Borrowings rose to ~Rs 749.75 Cr; finance costs of Rs 94.11 Cr directly eroded FY26 profit.
- 2. Profit fell despite revenue growth: Net profit dipped 2.9% as depreciation jumped 50%; continued below-EBITDA pressure would keep earnings flat.
- 3. Stretched working capital: Debtor days ~154 and a long cash cycle tie up capital and force short-term borrowing.
- 4. Metering concentration: Heavy reliance on government/AMISP smart-metering orders exposes revenue to policy and payment-cycle risk.
- 5. Weak price trend: The stock is down ~43% in a year; the 0.36% yield offers no cushion.
HPL Electric & Power — What To Monitor
- 1. Smart-metering execution: Order-book conversion and consumer & industrial segment scaling — watch quarterly segment revenue.
- 2. Capex payback: Whether the 50% depreciation rise converts into revenue and margin, or just fixed cost.
- 3. Debt trajectory: Whether borrowings stabilise and finance cost as a share of EBITDA improves.
- 4. Working-capital cycle: Debtor and inventory days; improvement would lift free cash flow.
- 5. Payout policy: Whether management lifts the flat Rs 1 dividend as profits grow — any change is a signal.
Should You Consider HPL Electric & Power for Dividend Income?
The HPL Electric & Power final dividend of Rs 1.00 for FY2025-26 is a gesture of continuity, not income. The "10%" is on face value; the real yield at Rs 280 is 0.36%, and it rose only because the price fell ~25% since May.
Positives
- Unbroken dividend record since listing
- Covered 14x by earnings, 35x by cash
- EBITDA grew faster than revenue
- Strong 5-year growth (~16% revenue CAGR)
Negatives
- Real yield only 0.36%
- Flat at Rs 1 for four years
- Net profit fell 2.9%; debt rising
- Share price down ~43% in a year
HPL suits investors backing a capex-driven growth story; it does not suit those seeking income. The dividend is safe but symbolic.
Frequently Asked Questions About HPL Electric & Power Dividend
What dividend has HPL Electric & Power announced for FY2025-26?
What is the HPL Electric & Power dividend yield?
What is the record date for the HPL Electric & Power dividend?
What is the ex-dividend date for HPL Electric & Power?
When will the HPL Electric & Power dividend be paid?
Who is eligible for the HPL Electric & Power dividend?
How is the HPL Electric & Power dividend taxed?
Is the HPL Electric & Power dividend sustainable?
What is the dividend history of HPL Electric & Power?
Why did HPL Electric & Power's profit fall in FY26?
How much of the dividend goes to HPL Electric & Power promoters?
What should investors monitor in HPL Electric & Power?
Disclaimer — HPL Electric & Power Dividend Analysis
This article on the HPL Electric & Power Limited dividend is for informational and educational purposes only and does not constitute investment, financial, legal or tax advice, nor a buy, sell or hold recommendation. Dividend figures, dates and financials are drawn from the company's audited results dated 27 May 2026 and stock-exchange announcements; market prices, yields and peer data are sourced from public providers and are subject to change. The ex-date is inferred pending official confirmation. Figures have been rounded. Investors should verify all details against original filings on the NSE, BSE and the company's website and consult a SEBI-registered adviser before making any investment decision. ShareBazaar Online and its authors accept no liability for any loss arising from the use of this information.