HBL Engineering achieved its 5-year CAGR outperformance through strategic expansion in electronics, innovation in railway safety systems, and strong profitability, setting it apart from traditional battery-focused peers.

Key Growth Drivers

• Breakthrough Performance in Electronics: In Q1 FY26, HBL’s electronics division revenue more than doubled year-on-year, becoming a major profit engine and contributing to overall margins that expanded by 1,100 basis points.
• Railway Safety Systems Leadership: HBL Engineering became a market leader with its proprietary train collision avoidance and management systems, notably the Kavach system for Indian Railways. This focus resulted in large contract wins and a robust order book worth over ₹40 billion, double the FY24 revenue and securing future growth.
• Innovation and Technological Edge: Investments in advanced electronic fuses, electric drive systems, and indigenous technology filled critical gaps in India’s infrastructure. The company’s ability to develop and deploy new solutions without foreign partnerships enabled repeat orders and rapid sector adoption.
• Diversified and Global Expansion: HBL expanded beyond India, focusing exports on defense and railway electronics, and maintained strong relationships with customers in more than 80 countries. This global push fueled sustainable revenue growth and insulated the company from local market challenges.
• Operational Excellence: Despite flat industrial battery revenues, cost controls and operational efficiency led to record profits—net profit grew by 79% year-on-year, while EPS nearly doubled in recent quarters.

Strategic Outlook

HBL’s strategy emphasizes volume growth in electronics and drive trains, ongoing innovation in defense and aviation batteries, and continuous engagement with high-margin infrastructure projects. This multi-pronged approach—anchored in technology, safety, and exports—secured its status as India’s top-performing battery stock by CAGR in 2025.