Shares of HBL Engineering Ltd declined nearly 7% on Tuesday, November 11, as investors engaged in profit booking following the stock’s sharp rally in the previous session. The stock fell to Rs 1,026.20, down 6.61%, from the previous close of Rs 1,098.80 on the National Stock Exchange (NSE).
The correction comes a day after HBL Engineering shares surged nearly 15%, hitting an all-time high of Rs 1,122, driven by the company’s stellar Q2 FY26 earnings. On Monday, the Hyderabad-based engineering company had emerged as the top gainer in the Nifty Smallcap 100 index, amid unusually high trading volumes — over 1.4 crore shares changed hands on the NSE, far above its two-week average of 10.34 lakh.
HBL Engineering’s strong second-quarter performance sparked the rally, as the company reported a four-fold jump in consolidated net profit to Rs 387 crore, compared to Rs 87 crore in the same period last year. Revenue from operations soared 135% year-on-year to Rs 1,223 crore, while EBITDA surged 400% to Rs 544 crore, and EBITDA margins improved to 44% from 21%.
The company’s electronics segment revenue rose eightfold to Rs 794 crore, contributing significantly to overall growth, while profit from this segment jumped 22 times to Rs 461 crore. However, the defence and aviation battery segment revenue declined 14%, which analysts suggest may have prompted short-term caution among traders.
At present, the stock remains volatile as investors lock in gains after a substantial rally, with market capitalization standing at Rs 2.83 lakh crore and a P/E ratio of 83.37.
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