New Delhi, June 24
Manufacturers of smart electric meters in Indian will see their revenue grow 20 per cent, akin to fiscal 2025, and touch around Rs 9,000 crore this fiscal (FY26), a report showed on Tuesday.
According to Crisil, the key catalyst here is the resolution of initial implementation constraints seen under the Smart Meter National Programme (SMNP), through which the government aims to replace 25 crore conventional electricity meters with prepaid smart electric meters.
Launched in 2017, the SMNP provides a Rs 90,000 crore revenue opportunity for the industry. Under the programme, each state distribution company (discom) awards contracts for installing smart electric meters to an Advanced Metering Infrastructure Service Provider (AMISP), which procures them from smart electric meter manufacturers.
The high revenue growth will perk up the operating profitability of manufacturers by 75-80 basis points (bps) to nearly 13 per cent in fiscal 2026.
This is because smart electric meters have high margins due to increased functionality compared with conventional electric meters. This, along with rising capacity utilisation following accelerated order execution, will lead to better cost absorption, the report mentioned.