Hitachi Energy India: Powering Ahead with Robust Q3 FY26 Performance

Hitachi Energy India Limited has reported a strong performance for the third quarter of fiscal year 2026 (Q3 FY26), demonstrating significant growth across key financial metrics. The company's revenue from operations surged by 29.6% year-on-year to reach Rs. 2,168 crore. This impressive top-line expansion was complemented by a remarkable increase in profitability, with Profit Before Exceptional Items (PBT) quadrupling by 118.4% to Rs. 402 crore. The Profit After Tax (PAT) also saw a substantial rise of 90.3% year-on-year, reaching Rs. 261.4 crore. This robust financial showing underscores the company's operational efficiency and strategic execution in a dynamic market environment.

The company's operating momentum remained strong, driven by a record-high order backlog of Rs. 29,872 crore, providing significant revenue visibility for the future. While the reported order intake for Q3 FY26 showed a year-on-year degrowth of 78.6% to Rs. 2,477.6 crore, management clarified that this was primarily due to a high base effect from a large HVDC Khavda project booked in Q3 FY25. Excluding this exceptional order, base orders actually grew by 73% year-on-year and 11.7% quarter-on-quarter, indicating healthy underlying demand. This performance reflects the company's ability to secure projects across diverse segments, including utilities, renewables, rail, and industry, with notable execution in 765 kV reactors, ICTs for solar and wind substations, and 400 kV CRP and substation automation.

Strategic Initiatives and Market Opportunities

Hitachi Energy India is strategically positioned to capitalize on India's growing economy and the accelerating energy transition. The company is actively pursuing several key initiatives to drive future growth and enhance its market leadership. Capacity expansions are a major focus, with the company expanding its traction transformer facility and recently conducting a ground-breaking ceremony for a new high voltage product manufacturing facility in Savli, Gujarat. These expansions are critical to meet the escalating domestic demand, particularly from sectors like high-speed rail and transmission, and to strengthen the company's competitive edge.

Another core strategic pillar is increasing HVDC localization and value addition. Hitachi Energy India is continuously taking steps to enhance local value addition in its High Voltage Direct Current (HVDC) projects. This includes participation in international projects like the Marinus link in Australia, which helps in localizing supply chains and improving cost-effectiveness. The company's commitment to strengthening its service business is also unwavering, with the establishment of a dedicated global Business Unit for Service, including operations in India. This initiative aims to drive productivity, operational excellence, and expand opportunities, especially for new-age customers such as data centers.

ESG Commitment and Market Outlook

Sustainability remains central to Hitachi Energy India's strategy, with ambitious Environmental, Social, and Governance (ESG) goals. The company is on track to achieve a 70% reduction in operational CO2 emissions by FY26 from its 2019 baseline, significantly ahead of its targets. It has also achieved a 69% reduction in waste disposed to landfill or incineration in FY25, with over 95% of general waste now recycled. The company maintains a strong safety record with zero fatalities and a commitment to zero incidents of corruption and bribery, reflected in improved external ESG ratings like CRISIL's