HPL Electric & Power Limited (HPL) Q4 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good afternoon. Welcome to HPL Electric & Power Limited's Q4 and FY '26 Earnings Webinar produced by ElevEase. It's a pleasure to have you all here. So I'm Shankhini, the Director of Investor Relations at Dickenson, the IR Advisers to HPL, and I'll be moderating our call today. So joining us from the HPL management team is Mr. Gautam Seth. He's the joint MD and CFO of the company. To all our participants, just a disclaimer. Please note that this conference is being recorded, and that some statements in this call may be forward looking based on current expectations and subject to risks that could cause results to differ materially. You can download the HPL IR deck and press release for FY '26 from the company website or the NSE. Perfect. So I'll hand over to Gautam now to begin with opening remarks. Over to you, Gautam.

Thank you, Shankhini. Good afternoon, everyone, and thank you for joining us today. FY '26 has been an important year for HPL. Revenue crossed INR 1,800 crores and Q4 revenue crossed INR 500 crores for the first time. EBITDA grew ahead of revenue. Gross margins improved and cash profit expanded even as reported PAT reflected higher depreciation from capacity additions. HPL Electric is now visibly a 2-engine electrical equipment and solutions company. Smart Metering remains our long-cycle growth opportunity, with technology relevance, order book visibility and a strong role in India's power distribution transformation. Consumer & Industrial, the C&I segment, grounds the company through brand, channel, product, breadth and everyday customer connect. This balance is important. Smart Metering gives us scale and visibility. Consumer & Industrial gives us the resilience, market reach, faster business cycles and a wider base of customers across residential, commercial, institutional and industrial markets. Together, they make HPL a more diversified and more dependable business. The Consumer & Industrial delivered a strong year. Revenue grew 26% to INR 784 crores, and its share of total revenue increased from 37% to 43% in FY '26. Q4 was the strongest C&I quarter on record at INR 214 crores. This growth was not the result of a reduced focus on metering. It was, in fact, driven by stronger internal execution, wider channel engagement and a deeper product basket, a better traction across multiple end markets. Within C&I, Wires & Cables was a standout performer, growing 50% in FY '26 to INR 340 crores. The quality of this growth is encouraging because it becomes broader and more volume-led, with demand from real estate, industrial, solar, telecom, institutional and domestic channels. This gives us greater confidence that the category is moving from a strong growth to structural scale up. Switchgear continues to be a steady and strategically valuable part of HPL Electric. It benefits from our manufacturing depth, technical credentials and long-standing presence across industrial and channel-led markets. Lighting and fans, while competitive categories, help complete the C&I basket and improve HPL's relevance with dealers, retailers and end customers. Our distribution network remains a key asset, with more than 900 authorized dealers and 85,000 retailers. HPL has reached that has been built over many years. Our product portfolio across Wires & Cables, Switchgear, Lighting and fans becomes stronger, and the same network can support higher throughput, stronger brand recall and better operating leverage. At the same time, Smart Metering remains a major growth engine. The business faced an industry-wide execution disruption earlier in the year, but recovered through the FY '26 and Q4, metering revenue was the strongest quarter of the year. Our order book continues to provide visibility, with metering accounting for more than 97% of the order book of over INR 3,200 crores as of 22nd May '26. Within this platform, Neeram Pulse, our smart water meter, represents a strategically important adjacency for the metering segment. It allows us to expand our metering R&D, communication technology and manufacturing capabilities into smart water infrastructure. We have also inaugurated a dedicated panel meter and AMI water meter manufacturing facility at Gurugram. The near-term contribution will depend upon approvals, pilots and utility adoption cycles. So we are approaching it in a calibrated manner. Strategically, it positions HPL early in a long duration opportunity alongside electricity metering. Looking ahead, our focus across both engines, Metering & Systems and Consumer & Industrial is quality growth, better product mix, pricing discipline, working capital focus and calibrated capacity expansion with continued investments in R&D. In FY '27, our priorities are executing on the Smart Metering order book and scaling C&I with quality while protecting our margins, managing receivables and strengthening HPL as India's trusted electrical equipment platform for the long term. So on this note, let's open the floor for Q&A.

Thanks, Gautam. I request you to keep your camera on for the Q&A session. All right. So we'll start with the Q&A. [Operator Instructions] So we'll get started with the Q&A session. So our first question is a question that's written in. So Gautam, this question is mainly about this kind of 2 growth engine story that we're trying to convey. Can you give us more insight as to how both of our segments from metering to C&I really position us strongly when it comes to our business model strength?

Yes. So we -- as HPL Electric, we have 2 verticals, and our focus largely in terms of the R&D, in terms of our product management marketing sales is focused on both of these. Now Smart Metering, as we are aware has been our primary division where we have been seeing a good amount of growth, a very good traction by the government. And so it's got a long-term story, which we have aligned ourselves very well in terms of the product, in terms of R&D and also in terms of the supplies. So that is one focus, which is there, which traditionally has been the B2B focus. So we are one company which has, over the last, you can say, 15, 20 years, we've been able to align both B2B and B2C in a proper manner and grow both together. [ Of late ], since the last 4 or 5 quarters, we have been seeing the B2C part also grow. The channel expansion has been there and all the products, in fact, led by Wires & Cables, but even the Switchgear, the Lighting has really come back and with the introduction of fans, that is also growing. So for us, in a medium or long term, we see both these 2 pillars of HPL, the Smart Metering, more on the B2B side, and the Consumer & Industrial on the B2C side, both to be really growing. And our focus largely remains on both of them for an aggressive growth in the coming years.

Thanks, Gautam. We'll have a participant ask some questions now. So participant asking question will be from the line of [ Kunal Dubi ].

Good set of numbers...

Kunal, sorry, we request you to start again. We missed you at the beginning of your question.

Can you hear me now?

Yes, loud and clear. Yes, we can hear you. Go ahead.

Gautam, congratulations on the good set of numbers. I had 2 questions for you. First of all, I would just like to thank, you committed around INR 500 crores in the last con call and you achieved that. So you walked to the top. Congratulations on that front. Question is on the numbers on the C&I business. Last year -- last quarter, you did not commit. But if I assume that we -- will we be able to cross INR 1,000 crores in this year, FY '27, is my first question. Should I go ahead and give the second question -- part of the question?

Yes, please.

The second part of the question is on the Smart Metering. I was reading that the government has now [ bugged ] up on the Smart Metering thing because the target was FY '26, they could not meet it. And now they are saying FY '27, '28, they will [ back it ] up. So my question is, how is the demand on the floor? Is it picking up? Or it will still be seasonality like Q1, Q2 last year, it was on the lower side, and you said in Q4, it picked up. So how is the demand in Q1 because we are almost 15 days left for Q1. So that is the second part of the question. And third, if I may ask you, I see a lot of pledge, a lot of meaning 2.5% of pledge on the promoter share. I heard you last time saying that there was no major CapEx involved. So if I may ask, is there any CapEx involved or what could be the reason for that pledge or something like that?

Okay. So I'll take one -- each of the questions. So if you see the...

Yes. The C&I business, the first part of INR 1,000 crores, was my question. Hello?

Yes. So on the C&I...

Gautam, I cannot hear you.

Yes. Can you hear me now?

Yes, yes. I can hear you.

Yes. So on the C&I part, we have seen a growth of 26% last year. And I think the similar trend would continue going forward in the current year. And we are already seeing a good amount of traction happening within the first quarter itself. And I feel it would continue in this year and even going beyond on that. And this would be largely, of course, led by the Wires & Cables, but also by Lighting, by the Switchgears and others. So I think that would be there. So to answer your question, yes, we should be looking at INR 1,000 crores revenue this year. But normally, I would not give a specific number. But yes, I think we are moving in that direction, and I think we should be looking to cross that. So that is it. So that would become -- for us in future, it would be a good starting point for us with around INR 1,000 crores of revenue to really scale up this vertical also in a bigger way in the next 3 to 5 years with more and more products catching on. The focus has been a lot on the channel expansion. And so that is how we have seen that paying results in the last 4 quarters, and I would say that would continue as we go forward. Now looking at the smart meter part, in the first quarter, yes, there was certain disruption, you can say, more -- not on the supply side, but more because of the execution part. But gradually, if you see quarter-on-quarter, that part has picked up. And so the Smart Metering and the trend what we see in the Q4, we see that almost continue in the Q1 as well. Of course, here, the -- here, the final dispatches goes because of the clearances coming in from the from the AMISPs. But overall, I see the demand being intact. And I think the government's target of -- I think they have extended the date to 2028, somewhere in March. So I think that seems to be possible. And if you go by the industry or the government figures, already 7 crore meters have been installed of smart meters, which is roughly -- if you see the initial sanction was about 22 crores. So almost 30% of the execution has happened. So it definitely now, I would say, the Smart Metering part, the execution part is in intact. As a company for us, the capacity is not an issue. Even if the execution gets ramped up, we are there to cater to that. Now in this year, the last year, we have done substantial CapEx, a lot into the metering part into other parts. But this year, we are expecting the CapEx to be mainly on the maintenance -- basically the maintenance CapEx.

Right. Cool. And the third part was on the pledge. Anything specific which I -- if you want to answer on that piece also?

No. So it is -- no, I think it's the -- one of the promoter entity, and it's about 2.42%, I think, yes. So that's -- yes, exactly. So I think we expect that to be reduced in the coming quarters, yes. But nothing related to the CapEx on that.

Okay. On the Neeram Pulse or the new -- are we seeing any revenue potential in this year by any chance?

Yes. We should start seeing some marginal revenues starting in the second part of the year. Now you should -- like if you see these are new products, they are currently undergoing certain testing, like we have the BIS mark already for this, which is mandatory, but there are other international certifications, which are ongoing right now. There are also certain testings, more of a pilot with -- which is done at the end customer, along with their integration. So those are happening. So I would say the couple of -- next couple of months would be focused more on the pilot projects on getting approvals in various tenders. And thereafter, the supplies would start. So it's going to be -- it's a long-term opportunity for us. We -- since we have the manufacturing capability, thanks to our energy meters and the communication technologies, what we have, the software technologies, what we have. So definitely, this should be -- the revenues would start. But the meaningful revenues would start coming in the next 1, 2 years. But this would have a big scale up as we go forward, yes.

Thanks, Gautam. Our next question written in is, what is expected TAM for the water metering? Is government coming out with major orders? How much is the remaining order from the government side on the smart meters?

Yes. So water meter typically happens more at the municipal and the [ Jal ] board level. So -- but I think that is more of a state subject right now. And although there are unconfirmed talks that maybe they come out, the government comes out with something similar to what they have done in the energy, electricity meters coming out with an AMISP and others, but I don't think there is any confirmation on that. Nevertheless, the demand for -- at the [ Jal ] board levels are high. The tenders are already out. So we are also looking at -- we are studying the market. We are very new into it, but the thing what we have right now is on -- our technology, we believe, is much better than what is generally available in the market. So we will approach this in a different way. And definitely, we should be looking at revenues coming in, in the near future. But overall, I think there should be -- hopefully, there should be a shift by the government, but it would depend entirely on their policies coming in place on use of new technology, on use of communication. Now coming to the -- like on the energy meter, you asked about the -- how many -- like the position of the installations and others. So my data is as good as yours because I'm also -- we would also refer to the government websites and the data which is there in the public domain. But roughly, I think out of the 22 crore meters, about 7 crores are installed. And about 15-some crores are tendered out. So there is a lot of -- like for us, as HPL Electric, we are focused on the supply side, we are supplying to various AMISPs. So our business is not dependent upon the tenders coming out for the AMISPs. Obviously, it is dependent, but there are still a lot of orders in hand. We ourselves are sitting on over INR 3,200 crores of confirmed orders. There are still a lot of orders which are pending at the AMISP levels to be given out to the meter manufacturers. And thanks to the performance of our meters, what we have, like the supply is what we are doing and the performance is what we are getting on the field. We continue to remain a preferred vendor for, I would say, almost every AMISP. So if you look at our customer profile, we are today covering almost every AMISP in a way. And we are definitely preferred with all of them. So I think those things definitely gives us a big opportunity going forward. The numbers are definitely there. The next 4, 5 years are going to be, again, very big in smart meters because even after the 22 crore meters, the -- if you look at the industry data and if you hear the expert opinions, I think people are anticipating that the total requirements would go up to 31 crores, 32 crores. So again, that gives us again a big upside as we go forward. And so overall, the numbers should be there definitely going forward.

Gautam, our next question is more about the software side on the Smart Metering piece. Can you give us more insight as to what our differentiator here is on the software piece? And how are we seeing this technology evolve going forward as the metering technology changes may be going into Phase 2 of the metering transition?

No. So right now, I think -- there's a lot to be done in the Phase 1 itself. So I think the Phase 2 time will come. And definitely, we will gear up for that with probably better and more wider solutions. We would definitely be out in that. But right now, if you see, there are a lot of -- based on the changes happening or the feedbacks coming in from the AMISP while on the installation side, so there are a lot of changes what we have been making in the hardware and the software. Of course, the overall specification is frozen and that -- within those parameters that is happening. So I will not -- I cannot be very specific on that. But if you look at the -- there is a lot of changes or [ updations ] or corrections happening on a day-to-day basis, and that is where our R&D is happening. So therefore, the feedback, what we get from the AMISPs based on the performance of our meters and the software is, I would say, pretty good. And that is what we stand for.

Thanks, Gautam. Our next question is from the line of [ Vishal Joshi ].

Yes, Mr. Gautam. I understand we have an order book of close to INR 3,000 crores. Can you just give us a flavor in terms of state. Which state would this be implemented in the current year? I understand last year, probably this was UP. Considering the elections in the state, do we see any impact on -- around our installations progress this year?

Yes. So I think this question was discussed even in the last con call. So our monitoring is -- because we are not doing the implementation. So we are just supplying to the various AMISPs, and they, in turn, would do the implementation in various states and the circles what they have bid for. So yes, some part very -- but I would say our exposure to UP is very less, only through one of the AMISPs. But if you see, all the major AMISPs, we are supplying right now. So maybe due to some elections or certain things, certain slowdowns could be there. But I think the issue in what you are mentioning is more about changing from a -- the prepaid to a postpaid. Now just to clarify for everyone that all the smart meters are actually programmed for prepaid, postpaid and net meters. And the changes in the specifications can be done right from the back end. So I think from our point of view, we are just supplying to them. However, the customers, whether they're AMISPs or the utility, if they want to use it for a prepaid or postpaid, I think that option is there. So it does not change anything from a business perspective. It does not change anything from the hardware or any of our supplies in that. So that is it. But overall, the business is large. And look, while 1 or 2 states might be going into elections, there are 5 states which are out of it. So we have already started seeing supply ramp up in, let's say, like West Bengal, we have started seeing that. So I think that's a continuous process. Overall, the numbers are large. The requirements are large. So maybe 1 or 2 states might see certain slowdown here and there. But for an industry -- from an industry perspective, the moment we -- as an industry of 7 crore meters have been installed. So at least now certain meaningful numbers have started coming into that. [ Once ] about 30% of the meters, the initial sanction meters are done and balance are underway. So on a month-to-month basis, the implementations are happening, and I think that should be a positive for the industry.

Our next question is from Manish Gupta from MoneyGrow PMS and AIF. So he says, hi, Gautam, any plans to get into gas meters? We recently met another Smart Metering company, and they were guiding towards much higher TAM for gas meters as opposed to water meters. Would appreciate your insights on gas meters.

Yes. So right now, of course, we have done internal testings. We have done certain study on that part also because globally, if you see, most of the metering companies are into electricity, gas and water, this thing. And there is a lot of production and R&D leverage, what one can build in it. But right now, we don't have any plans or a solution right now for that. But yes, we have internally studied that. And as and when we have something to share or something once we are coming out, we will definitely keep the house informed.

Thanks, Gautam. Our next participant asking questions is from the line of Pranjal Mukhija.

Gautam, sir, am I audible?

Yes, Pranjal. Go ahead.

Yes, Pranjal.

So Gautam, sir, I had a couple of questions, more on the software side of the business. So firstly, I would like to understand, like I would love to understand the makeup of our R&D team and the new product development team. Can you just tell us how the team has divided in terms of when you talk about the device side of things and in the software side of things? Like how are we building the team there? What kind of engineers are we hiring from? What kind of schools? And generally, would love to understand the strength and building in that part of the business?

Yes. So I think -- of course, I don't think I would be sharing too much of an internal information. But yes, we have teams which are working now, and they are internally divided on various projects. They are divided also on various, let's say, amendments, new developments, plus there are core software, hardware teams which are there. So I think those alignments are there. And -- but for me to share on how the entire teams are structured and how -- what our over 120 people are doing, I don't think that, that would be right and proper. But overall, yes, we -- there are teams, there are targets, what they have, and some on a short term and some on long-term development work.

Sure, sir. So sir, actually, I was wanting to like understand a little bit on the tech side. I was recently at the CII Smart Metering Conference that happened in Delhi. And the government there sort of laid down a proper road map for the tech and the software part of the whole AMI concept. And they were talking about how, using smart meter, they want to basically unlock actionable intelligence for grid planning. And this can include maybe forecasting, grid management, reliability analytics, and optimizing the whole distribution sector, so that is visible. And I think [ DER ], as a concept, I think they were talking about a lot. So just wanted to understand how are we sort of building our business and positioning our business to sort of capture these newer opportunities that are emerging in the whole AMI 2.0 thing that is happening globally now actually? And like how are we trying to integrate into the whole India energy stack piece, which is also a very unique and interesting development that's taking place in the country.

Yes. So I think -- I think technically, I won't be able to answer so much. But what you just said is probably our teams are working on most of these because we do, in internal reviews, do keep hearing on these type of developments what are happening. One thing is there that apart from our major focus as HPL Electric has been on the supply side of the meter. Of course, wherever value-add work can be done, we have always aligned those with the metering supplies. But we are also -- we have one AMISP where -- in West Bengal, and which I think with the new government in place now, that has gained a lot of momentum. And we hope that within the -- by the Q4, we should be able to complete the online part on that. So there, we also have the softwares, the head end, the billing. So those types of software are also there. So we -- in our own way, we've been also working on the whole ecosystem, although our primary focus has been and will remain for some time on the supply side. But in terms of capability, I would say we have one of the finest R&D centers in the country, if you look at from a metering point of view, and with capabilities on all types of software and hardware development.

All right, sir. Sir, if you could like -- if possible, maybe you could share some sort of areas where we're trying to build the software and solutions. Is it on the cost optimization side for the utilities? Or is it like on the revenue generation side?

All of it. All of it, Pranjal. So on the -- like what could be there looking at -- because we've also started now focusing on the international market. So there are a lot of new requirements also which are now coming because Indian market typically is working on certain set of broad parameters and specifications. And that is -- that was the idea of the government that there would be a broader specification across the country in the smart meter, let's say, 1.0, the initial rollout. But now we have started working on international markets. We -- so we have started getting more requirements. We are seeing the international trends. So on software, which would eventually help the customer, eventually help the utilities, I think that is what we are working for. And that is a basic thing what we do in HPL because if a customer gets benefit, they would come back for more of the product and solutions from us. And I think that is what we are working on. But specifically, what we are doing and what we are -- I don't think that we'll be able to disclose on a call like this.

Sure, sir. And sir, finally, because you mentioned the international market bit. Is Australia an opportunity that you're looking for? Because I think Australia meters are a completely different configuration, right, compared to India. And so I just wanted to understand like if your product is ready and by when are you thinking of launching in that market?

So we are working on IC specifications, which are broader -- of course, they're applicable in Australia as well, like our Switchgears and others. But specifically, I'll need to check with the team, but I think we are moving in Middle East. We are moving already in SAARC countries and 1 or 2 countries in Africa. So overall, we are relatively new for the metering product and especially the smart meter in the international market. But I think in the next 3, 4 years, we should cover a lot of the addressable market, what our kind of specifications can reach out to. So I think that's definitely going to be something where we are going to focus on.

Sure, sir. And sir, one small request, if we could also get a chance to visit the facilities, especially on the smart meter side. I know you don't usually entertain these requests, but really appreciate it.

Yes, all right, we could.

[Operator Instructions] Great. So we'll take another written question. This is more on the C&I segment. So C&I revenue grew 25%, near to 26% in FY '26. How do we think about this growth when it comes to scalability and sustainability for C&I segment?

Yes. So as I said, even in my opening remarks and in one of the answers that this is one part where I feel that certain momentum has been built up and the channel expansion has been going on at a fairly good rate. And this year, with the kind of growth what we are looking at, I think turnover around INR 1,000 crores should be there on board. But this, I would believe will be the starting point for HPL Electric to be, at least looking to really grow in major way as far as the consumer electrical segment is there. Now our focus is right now on a lot of product development. So if you see each of the things, whether it is in Lighting, Switchgear, domestic switchgears, switches, we've, in fact, just launched a new range of switches. In fact, the first launch is tomorrow in the morning, and I'm there in Patna myself for that. We are launching a new range of switches tomorrow. But in every segment of the consumer and industrial part, there are new products which are being launched. We also have -- the channel expansion now has taken a different way where we are using a lot of data. Our dealers, our manpower are connected through the various apps. So through that, we are trying to reach out to a larger part of the market. And I think the results have been showing. The growth have been coming in. But again, as I said, it's quite a start. The next 2 to 3 years should see this segment also expanding to a major part -- a major pillar in HPL, where like in smart meter, we would see the HPL consumer and industrial part also as a very strong pillar with -- not only on the revenue, but also on the margins and other things what we -- what goes with it.

So the next question is, how are we looking at debt reduction generally?

So we -- I think our debt levels, like definitely this year, we are seeing a growth in terms of revenue and -- in both the segments. But I don't see the debt going up. I would say that it would remain somewhere in the same levels right now. So probably because we have done a sufficient amount of CapEx in the last 3 years, so certain long-term debts have come on that. But right now, no immediate reduction, but I think the debt's to remain at this level, but with the revenues going up from here as well.

Thanks, Gautam. I will take a live question now from the line of Chandresh Malpani.

Congratulations, sir, on a good set of numbers. So sir, my first question is, like you mentioned on the UP that we don't have a higher exposure on that side. But let's say in your latest order announcement that you've done, that we have received about INR 230-odd crores from GMR entities. So I mean -- and you have also mentioned that there is a regular leading customers. So maybe if you can -- like since you have started giving the names of AMISP in your latest order announcement. So maybe top 5 AMISPs, you can just -- maybe just to understand the customer concentration risk that we are not having in our business of the current order book, let's say, of INR 3,200-odd crores.

Yes. So I'd just like to say that last many orders, in fact, we have -- we have not been giving the order announcement. So only, I think, one announcement we did give, but otherwise broadly a lot of orders, what we have received in this quarter or the last quarters we have not been giving because I think the new regulation requires that every detail of the order, including the quantity, price, name, everything needs to be given, which we, somehow, for competitive reasons, found it not necessary to give it. So I think that is as per the regulations. But we are -- of course, we are supplying to GMR. But if you look at all the other independent AMISPs, I think practically everybody we are supplying to them. And we are definitely their preferred vendors. And of course, Adani is big. There are other AMISPs. So we are practically with everybody. So our spread, if you look at from an AMISP is not concentrated on just 1 or 2, but all the active ones, we are supplying to them.

Okay. So let's say, if you are not like giving the absolute or exact numbers. But let's say -- why I'm asking this question is that, sir, of the total, about 15, 16-odd crores meter tendered out, let's say, 50% of that is with, let's say, Adani, plus which is -- now Intelli is also being acquired by them. So Adani plus the other listed players. So they are close to about 8 crore odd meters. So maybe like Adani, like you mentioned, in your remarks that, is it a significant customer, Adani? Or maybe I don't want the exact number of percentage of the order book, but let's say, the business with Adani, how it has been in these last 2 years?

Yes. So like you just mentioned 2 names, which are like both we've been supplying to, both Adani and IntelliSmart. We are approved in both of them. And I would say, yes, definitely, we -- since they have a major share. So we are also supplying to them, and we are one of the preferred vendors. So definitely, I think we are -- if you see traditionally also from [ '96 ] also, whenever we've been always in all the utilities, all the central and state utilities we've been supplying. So here also right now, we cover almost every AMISP and now whatever quantities they have. So to those proportions, we are supplying to all of them.

Okay. Okay. And second question is on the tendering side, sir. Let's say, last year was a kind of a lull period, but this year, what are your expectations from the newer -- I mean, the states of Tamil Nadu and alike? How you see this tendering going ahead in 1 or 1.5 years? And secondly, these tenders, how are you seeing the realizations moving basically, in percentage, if you can highlight that what is the reduction that is likely to be there in these newer tenders or because -- and on the input cost as well. So overall, that side.

Yes. So I think, again, when we look at -- I'll be going by the industry data, which says that almost 15-some crores have been tendered out, 7 have been installed. So I think we already are sitting on good order book. And even those orders, which the AMISPs need to give, we definitely have a good chance of getting in those orders. Now the balance, I believe we are almost 5 crores to 9 crores of orders which are on the floor, which need to be tendered out. So we are not -- because we are not in AMISP, so we are not directly participating in those tenders because those are done by the AMISP. But all the AMISPs which are actually participating in them, we have been supplying to them. We are already approved in their existing projects. So definitely, we have a very good chance of making it to be a supplier for those new projects. So I think -- that is how we look at the market. So it's...

Okay. And on the realization and input costs...

So those are there slightly -- you have to see it in 2 ways. One, obviously, the realizations move a little downwards, but the quantities have been going up because just 2 years back, the installation was very less, and now we've already crossed 7 crores as an industry. And I think in the next 2 years, probably we would be reaching out maybe 18 to INR 20 crore meters being installed. So the volumes go up, the realizations come down. But you have to also see that still the -- like us being a very established and a mature player even in the earlier setup. I think those -- that experiences definitely gives us an edge over others. And that is where our price realizations, even the orders what we are getting because I would say the realization is still fairly good. The margins are good. If you see even on the Q4 EBIT, it's almost 17.5% on the Smart Metering part. So those are there. Certain -- not exactly on the commodity, but let's say, the exchange variations or certain -- because of the war-like situation, certain supply chain disruptions may be there. But right now, we don't see anything. No headwind on that part as well. And -- so for us, when we go into this year, we are seeing a good amount of growth. Our order book is strong. The implementation, the run rates are fairly good. One or two states might be a little slow on maybe due to elections or due to some other things. But I think overall in the numbers, we don't see that to be affecting the overall revenue and the margins.

Our next question is written in. So this is pertaining to the C&I segment again. Hi, Gautam, can you explain more on the C&I segment turnaround? We saw double-digit growth over the last 3 years. What gives us confidence to sustain this? How much is structural or volume led? How much is commodity price movement?

No. So other than Wires & Cables, which has certain component on the -- based on the commodity, the prices have gone up. But still, even if you look at Wires & Cables on stand-alone base as well, we did almost, I think, over 80% growth in the Q4. So largely, it is volume led, even our Q3 growth were very high. So overall, if you see the 50% growth, the large part of it on the Wires & Cables has been on the volume growth. And I would say that would continue in the first quarter and even the next quarters going forward. So that is there. In the other part, if you look at the Switchgear, Lighting and the fans and others, there have been certain increases in prices, but I think that has happened more in this quarter, in the current first quarter, what we have done. So it's not too much of commodity driven where we have the prices being increased or passed on to the things. Certain -- whatever increases happen, although in -- especially in the trade market, that gets passed on, but that's with a lag. There is a 2 to 3 months of a time period where -- but the cost eventually gets passed on. And one thing interesting has been that in Lighting, I think after a 7-year period, we have seen the price increase to happen and actually get passed on to the channel and to the customers. So I think it's -- overall, that part is there as regard the price increase, what you talked about. Looking at the growth, we are seeing a volume-led growth. We have internally come out with a, what we call as an HPL, like a one consumer type of a campaign internally where we are making all our existing dealers to look at the broader basket of the consumer products. So I think that has helped us. Each one of the dealers are picking up 1 or 2 of like -- the wire dealers are picking up the lighting or vice versa or even others. So that is also helping us. The channel expansion is happening in a major way. There are targets for the retailers, dealers, there are a lot of [ big ] plans on a daily and a weekly, monthly basis. So that is all helping the brand to grow. We are also investing a lot into the BTL activities, which -- just to make the brand visible at least at the point of sale. So a lot of new type of campaigns, new strategies are happening. But once the results are coming, so we are also now becoming much more enthusiastic on this segment. And hopefully, you should see the results even in the next couple of quarters here. So this segment, as I said earlier, also will become a strong pillar in HPL.

So there's a follow-up on this point. C&I margins were lower this year despite some strong growth. Can you give us more idea on what caused this? And how would margins improve, whether it be Wires & Cables or Switchgear or Lighting?

Yes. So there are 2 aspects of that because, one, the share of Wires & Cables has, within the C&I segment, has gone up because wire has seen quite an unprecedented growth. So that has been one reason. But other thing is also, as I said, that the price increase, and from February onwards, we have seen the commodity prices go up. We have seen an increase in the industrial plastics, in the metals, all across that has gone up. And so there, the price increases get passed on in the first -- by end of April and beginning of May, they got passed on. So I think -- hopefully, we should see the margins coming back. And the last one week event has also made the inflation. And if you look at the metals, the exchange rate crude, because industrial plastics are also dependent upon crude. So I think we are seeing certain ease out on that. So hopefully, the margin should come back.

Thanks, Gautam. Just a reminder to all our participants. If you have any further questions, please feel free to write to us at [email protected]. This e-mail ID is also on the last page of our investor deck. We'll be taking any follow-ups through written questions off-line after this earnings call. I'll now hand over to Gautam for closing remarks. Just a reminder to all participants, before we do that, you'll be receiving a survey after the end of this call. It would be really valuable to us to have your feedback so we can align our coms to your expectations. So on that note, over to you, Gautam, for your closing remarks. I think you're on mute, Gautam.

So thank you, everyone, for your questions and continued interest in HPL Electric. So we have seen FY '26 has reinforced our confidence in the company's direction with a higher scale, improved operating quality and 2 complementary growth engines. So the Smart Metering remains a large, let's say, technology-led opportunity with a strong order book, while the Consumer & Industrial part continues to be a compounding platform for us, supported by the Wires & Cables, Switchgear, Lighting, fans and a wide distribution network. So built over the last couple of decades, the manufacturing, the technology, the distribution channel and the trust, what we have, we are quite focused on the sustainable growth and creating a long-term value for HPL. So thank you for all of you for your time and support.

Thanks, Gautam, and thanks to all our participants for being with us today on behalf of HPL. We look forward to keeping you updated on our company's progress and updates. Once again, for any more follow-ups, please feel free to write to us, and we'll make sure your questions are answered. Thank you, everybody. Please have a pleasant day ahead. Very good afternoon. Thanks, Gautam. Cheers, everybody.