HBL Power Systems Surges 14% with Defence-Railway Push

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Robust order inflows, booming defence and battery segments, and industry-leading margins Fuel HBL Power’s rally

By S JHA

MUMBAI, August 11, 2025 — Shares of HBL Power Systems Ltd soared 14.3% in Monday’s trade, closing near the ₹686 mark after a gap-up opening, as bullish sentiment swept through the defence-to-railway electronics player following stellar Q1 FY26 results.

According to a StockEdge analysis, the company has been riding a multi-sector growth wave — from defence and railway electronics to industrial batteries — backed by strong order inflows and a focus on indigenization.

“Q1 FY26 Performance showed a revenue jump of 18.23% YoY to ₹621.4 crore, while net profit surged 86.19% YoY to ₹141.2 crore, reflecting margin expansion and operational efficiency,” said StockEdge in its note posted in its Telegram channel.

Infographics of HBL Power Systems Q1FY26 results

On the technical front, the StockEdge momentum score paints a positive picture:

1-month score: 55/100 (Neutral)
3-month score: 63/100 (Bullish)
6-month score: 95/100 (Strong Bullish)

“The stock is sustaining above ₹686, with potential upside targets in the ₹725–740 range, and support near ₹646. RSI is firm above 51, indicating underlying strength,” added the Kolkata-based stock analysis firm.

Business strengths include a dominant position in railway anti-collision systems, strong battery portfolio, and minimal leverage with a debt-to-equity ratio of just 0.05. The company also boasts an industry-leading ROCE of 33.76%.

However, analysts caution that premium valuations (PE of 55) and intensifying competition in niche defence electronics could limit near-term upside. “Trend, fundamentals, and the order book look strong — but better risk-reward may come on dips,” the StockEdge note said.

Face value of shares of HBL Power Systems Ltd is ₹1, and the current market valuation of the company stands at ₹19000 crores. “Incorporated in 1983, HBL Power System Ltd manufactures and services different types of batteries, e-mobility, and other products,” read the description of the company on Screener.

The stock spurted b y over 14% on Monday on the strength of volume spike which had last been seen on July 1 this year when shares were trading at ₹620. The stock is also approaching its December, 2024 peak of ₹704, which also remains the all-time high for the shares.

There has been no change in the shareholding pattern for the stock in the last two recent quarters. The foreign institutional investors hold little under five percent of the shares, while their domestic counterparts own less than half a percentage in the company.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)