The demand for smart meters is experiencing a boom driven by policy tailwinds – the Revamped Distribution Sector Scheme and the Smart Meter National Programme. The Ministry of Power aims to install 25 to 30 crore smart meters nationwide. This translates to a cumulative market opportunity of ₹60,000-90,000 crore, as per HPL Electric.
The Smart Meter Thesis
Smart meters are advanced digital devices that measure and record energy consumption (electricity, gas, or water) in real time. Unlike traditional mechanical meters, these devices automatically transmit this usage information to utility providers via wireless communication networks. They act as the primary edge devices and the “cornerstone” of the smart grid.
They replace one-way power distribution with a two-way data flow. By integrating with AI, the Internet of Things, and blockchain, these meters are expected to revolutionise the grid. This enables peer-to-peer energy trading, personalized energy solutions, and the development of smart cities.
This article examines three beneficiaries of smart meter opportunities.
#1 Genus Power Infrastructure: The Scale Leader in India’s Smart Grid
Genus Power (GPIL) is one of India’s largest companies in the smart metering solutions space. Genus provides comprehensive, end-to-end smart metering solutions across the electricity, gas, and water metering ecosystems. Its offerings span the entire technology stack.
Manufacturing Dominance: Scaling to 1.8 Crore Meters Annually
Genus is a dominant force in India’s energy transition. The company serves around one in five Indian households. It has installed over 9.1 crore meters to date (and is approaching the 10 crore mark). The company has a massive annual production capacity of 1.8+ crore meters. Genus also exports its products to international markets.
The 45% Smart Meter Market Share
Out of approximately 5.6 crore smart meters installed in India to date, Genus has supplied 2.5 crore of them. This translates to a massive market share of nearly 45% of the country’s currently installed smart meters.
The ₹27,217-Crore Order Book Moat
The company is on track to commission approximately 80-90 lakh smart meters during FY26. As of Q3FY26, the total executable order book stood at approximately ₹27,217 crore (net of taxes). This covers about 2.75 crore smart meters and provides clear, multi-year execution and revenue visibility over 8-10-year concession periods.
In addition, tendering activity provides a significant runway for the future. Genus is bidding on live tenders totaling roughly 4.5-5 crore meters across Tamil Nadu (3 crore meters), BSES Delhi, Madhya Pradesh, Punjab, and Haryana. These are expected to be finalized over the next 3 to 6 months.
Management expects continuous growth over the next five years, with a steady year-over-year growth rate of about 10% after the initial scale-up to ₹6,000 crores by FY27, up from ₹4,500 crores in FY26E. To ensure diversification beyond smart electricity meter rollout, it is heavily investing in new verticals, such as gas and water meters.
Capturing the 2030 Gas and Water Metering Opportunity
The Total Addressable Market for gas meters in India is estimated at 12 crore connections by 2030. Water metering is in its early stages but shows promise. Genus expects these segments to deliver meaningful revenue contributions within the next 3-4 years. Financials remained robust in 9MFY26.
Standalone Financials
Total revenue grew by 113.5% year-on-year to ₹3,213.8 crore, driven by order book execution. EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) rose by 158.6% to ₹676.2 crore, while margins expanded 367 bps to 21%. Operating leverage, execution efficiencies, and disciplined cost management drove the margin. Net profit grew by 157.1% to ₹424.3 crore.
#2 Techno Electric & Engineering Company: The High-Speed Execution Specialist
Techno Electric (TEECL) is a fully integrated player delivering end-to-end solutions across power generation, transmission, and distribution. TEECL has built over 50% of India’s national grid substations. TEECL commands a high-speed execution rate of 3,000 smart meters per day.
The DBFOOT Model: Annuity-Style Stability
TEECL is expanding its footprint as an Advanced Metering Infrastructure Service Provider. It executes these projects under DBFOOT (Design-Build-Finance-Own-Operate-Transfer) and TOTEX models. It handles the full scope of grid digitisation, including procurement, field installation, IT backend integration, and consumer support.
The contracts typically span 120 months, consisting of a 27-month installation phase followed by a 93-month Operations and Maintenance (O&M) phase. Once installed, the projects shift into the O&M phase, which provides steady, predictable cash flows. Smart meters’ efficiencies are also high.
Leveraging Data to Combat Tampering and Revenue Leakage
For instance, TEECL successfully installed around 400,000 smart meters recently in Indore. This project alone detected 688 tampering cases, generated ₹31.84 crore through remote connect/disconnect operations, and increased average consumer billing by 17% due to accurate consumption tracking.
The ₹2,612 Crore Order Book
TEECL has already rolled out over 25 lakh smart meters. It has an ongoing smart metering order book valued at over ₹2,170 crore, accounting for 18% of the total order book. The company has an active order book of 22.4 lakh meters valued at ₹2,612 crore. It has invested around ₹1,000 crore in its smart metering ventures.
The 22.4 Lakh Meters Deployment Pipeline
To complete the deployment of the current 22.4 lakh meters, the company plans to invest around ₹1,500 crore. TEECL has successfully deployed around 50% of its order book. As of Q3 FY26, the active rollout completion rates stand at 86% in Madhya Pradesh, 52% in Jharkhand, 34% in Jammu & Kashmir, and 31% in Tripura.
The Jammu & Kashmir (Lot-B) project, covering 2.5 lakh consumer meters, is 100% complete and fully operational. The company expects to complete the Indore and Ranchi facilities by June 2026, and the Kashmir and Tripura projects by December 2026.
TEECL financials also stayed strong in 9MFY26. Total revenue in 9MFY26 increased 38.97% year-on-year to ₹2,209.3 crore, driven by strong business momentum and consistent order book execution. EBITDA increased 40.06% to ₹315.6 crore, while margin expanded 12 bps to 14.29%. Net profit increased 49.04% to ₹373.3 crore.
#3 HPL Electric & Power: A Market Leader
HPL Electric & Power is a prominent Indian manufacturer of electrical equipment. It serves as a one-stop shop for low-voltage electrical solutions. HPL serves a range of customers, including power utilities, government agencies, institutional clients, and retail consumers. HPL operations are divided into two main reporting segments.
Metering, Systems & Services (B2B) focuses on smart meters, panel meters, and prepaid metering solutions. This segment is a major growth driver, largely driven by India’s transition to smart electrical infrastructure. This segment accounts for 61% of total revenue as of Q3FY26, with the balance coming from Consumer, Industrial & Services (B2C).
The 20% Share in Domestic Metering
HPL holds 20% market share in the domestic electric meters market, with an installed annual manufacturing capacity of 1.1 crore meters. It is heavily involved in the national rollout led by Advanced Metering Infrastructure Service Providers. HPL recently included a 4th fully automated smart meter assembly and testing line in Gurugram.
A Portfolio 99% Aligned with Smart Infrastructure
As of February 2026, the order book stood at ₹3,100 crore, with over 99% of the orders coming from smart metering projects. On the financial front, revenue in 9MFY26 increased 6.93% year-on-year to ₹1,291 crore, driven by the execution of the smart metering order book.
EBITDA grew 13.46% to ₹195.62 crore, while margin expanded 87 bps to 15.15%. Net profit increased 6.43% to ₹60.35 crore.
Diversifying into the ₹3,000 Crore Water Meter Market
Leveraging its expertise in electrical smart meters, HPL recently launched Niram Pulse (a smart water meter with automatic meter reading and advanced meter infrastructure) and entered the data-driven water infrastructure market. It addresses a rapidly growing market estimated to exceed ₹3,000 crore by 2030.
Bottomline
Genus Power leads in return ratios, both Return on Capital Employed (ROCE) and Return on Equity (ROE) showing superior efficiency, followed by Techno and HPL. On the valuation front, post-recent correction, the multiples of all three companies have declined below both their historical multiples and the industry median valuation. Techno, however, is trading at a premium to the industry.
| Peer Comparison (X) | |||||
| Company | P/E | 5Y Median P/E | Industry P/E | ROCE (%) | ROE (%) |
| Genus Power | 14.4 | 66.4 | 25.2 | 19.2 | 17.5 |
| Techno | 28.3 | 31.5 | 16.4 | 16.5 | 12.8 |
| HPL Power | 23.0 | 45.2 | 27.9 | 14.5 | 10.8 |
| source: screener.in | |||||
India’s smart meter push offers long-term visibility for established players. Genus leads with scale and returns, Techno Electric brings annuity-style cash flows, and HPL offers steady execution with diversification into water metering.
As deployment accelerates, balance sheet strength, execution efficiency, and margin sustainability will separate durable compounders from cyclical beneficiaries. Until then, it’s worth keeping them in your watchlist.
Disclaimer:
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were unavailable have we used an alternate, widely accepted, and widely used source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The articles’ content and data interpretation are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.