Hitachi Energy India: Powering Ahead with Strong Order Book and Sustainable Growth

Hitachi Energy India Limited has reported a robust performance for the second quarter of Fiscal Year 2026 (Q2 FY26), demonstrating significant growth across key financial metrics. The company's strategic focus on India's burgeoning energy sector, coupled with disciplined execution, has resulted in a record order backlog and substantial profit expansion. For Q2 FY26, the company recorded total orders of INR 2,217.1 crore, marking a 13.6% year-on-year growth. Revenue from operations stood at INR 1,915.2 crore, a healthy 23.3% increase compared to the previous year. This strong top-line performance translated into exceptional profitability, with Profit Before Tax (PBT) soaring by 399.8% year-on-year to INR 352.9 crore, and Profit After Tax (PAT) witnessing an impressive 405.6% jump to INR 264.4 crore. The operational EBITDA for the quarter reached 15.2%, reflecting enhanced operational efficiency and a favorable product mix.

The company's performance was bolstered by significant contributions from the renewables (wind & solar) and rail & metro segments, which saw order growth of 40% and 61% respectively. While the transmission and data center segments experienced a temporary decline in orders for the quarter, management remains optimistic about their long-term prospects, attributing the dip to timing rather than fundamental weakness. The strategic emphasis on the domestic market, driven by India's energy transition, continues to be a core focus, complemented by a consistent export contribution ranging between 25-30% of the order book. Key orders in Q2 FY26 included automation solutions for state transmission companies, HVDC connections, and various AIS/GIS stations for solar, wind, and industrial projects, alongside locomotive transformers for Indian Railways.

Financial Highlights: A Snapshot

Strategic Initiatives and Market Leadership

Hitachi Energy India's robust performance is underpinned by its proactive strategic initiatives and commitment to sustainable growth. The company has achieved its highest ever order backlog of INR 29,412.6 crore, providing substantial revenue visibility for future quarters. This backlog is a testament to its leadership in core segments like Renewables, Utilities, HVDC, Industries, and Infrastructure, while also actively harnessing opportunities in new segments such as data centers.

In line with its long-term vision, the company is undertaking significant capacity expansions. It plans to deploy approximately INR 750 crore in CAPEX for FY26 and around INR 720 crore for FY27, with a total CAPEX outlay of nearly INR 2000 crore to address future demand across its facilities in Chennai, Bangalore, Mysore, and Baroda. These investments are crucial for leveraging the large order backlog and ensuring the ability to supply the growing domestic market.

Sustainability remains a cornerstone of Hitachi Energy India's business strategy. The company is projecting a 76% reduction in CO2 emissions for FY25, significantly exceeding its 2030 target of a 50% reduction from the 2019 baseline. Furthermore, it has already achieved 100% renewable electricity in its operations, a commitment it plans to maintain through FY25. Efforts in social sustainability are also notable, with gender diversity improving to 11% by FY24 end, moving towards a target of 16-18% by 2030, and the first batch of women engineering graduates securing 100% employment.

Outlook and Future Trajectory

Management expressed confidence in sustaining the current growth momentum and profitability. The company has already achieved double-digit EBITDA margins ahead of its own targets and aims to maintain and further improve these. The pipeline for HVDC projects remains strong, with 2 projects expected to be finalized in the current financial year and an additional 2 to 3 projects per year anticipated for bidding in the next year. This aligns with India's growing energy network and increased focus on advanced grid technology, digitalization, storage, and integrated solutions.

Hitachi Energy India is well-positioned to capitalize on India's economic growth and the significant investments flowing into the clean energy sector. The renewable energy sector alone attracted nearly INR 1 lakh crore in H1 2025, and the sanctioned INR 2.4 lakh crore transmission plan for 500 GW further underscores the market potential. The company's proactive approach, coupled with its strong order book and strategic investments, positions it for continued leadership and sustained growth in the evolving energy landscape.