Hitachi Energy India has Rs 1,665.26 crore QIP proceeds unspent

Hitachi Energy India Limited had Rs 1,665.26 crore of approximately Rs 2,520.82 crore raised through its qualified institutions placement, or QIP, unutilised on September 30, 2026, including Rs 1,630 crore held as bank deposits. The disclosed balance represented about 66% of the placement proceeds raised in the quarter ended March 31, 2025.

What did Hitachi Energy India disclose about its QIP proceeds?

Hitachi Energy India disclosed that Rs 1,665.26 crore of QIP proceeds remained unutilised at September 30, 2026. The company said it had used the remaining proceeds for the purposes for which they were raised, without providing a project-wise or category-wise allocation in the financial-results notes.

The QIP involved the issue and allotment of 21,90,688 equity shares with a face value of Rs 2 each to eligible qualified institutional buyers during the quarter ended March 31, 2025. The aggregate proceeds were approximately Rs 2,520.82 crore, which means Rs 855.56 crore had been utilised by September 30, 2026, based on the difference between the stated issue amount and unutilised balance.

The company said directly attributable issue costs were adjusted against securities premium under Indian Accounting Standard 32 in the quarter ended March 31, 2025. Its note did not state a target date for using the remaining Rs 1,665.26 crore or identify the individual assets, projects or working-capital uses funded from the Rs 855.56 crore calculated as utilised.

Where is Hitachi Energy India's unused QIP money held?

Hitachi Energy India said Rs 1,630 crore of its Rs 1,665.26 crore unutilised QIP balance was kept as deposits with banks on September 30, 2026. Bank deposits therefore accounted for about 98% of the undistributed balance, while the filing did not classify the remaining Rs 35.26 crore.

The September 30 balance sheet reported Rs 4,472.66 crore of cash and cash equivalents, down from Rs 4,689.17 crore on March 31, 2026. It also reported Rs 0.44 crore under bank balances other than cash and cash equivalents, but the QIP note does not reconcile the Rs 1,630 crore of deposits to the balance-sheet classifications.

Interest income was Rs 114.57 crore in the six months ended September 30, 2026, compared with Rs 120.75 crore in the corresponding previous period. The cash-flow statement recorded Rs 114.30 crore of interest received for the same six months, but Hitachi Energy India did not attribute any specified portion of this income to the QIP deposits.

How does the QIP balance compare with Hitachi Energy India's balance sheet?

Hitachi Energy India's Rs 1,665.26 crore unutilised QIP balance equalled about 37% of its Rs 4,472.66 crore cash and cash equivalents at September 30, 2026. Total assets rose to Rs 14,126.52 crore from Rs 12,043.72 crore at March 31, while total equity increased to Rs 5,755.59 crore from Rs 5,175.96 crore.

Inventories increased to Rs 2,209.09 crore at September 30 from Rs 1,485.04 crore six months earlier, and trade receivables rose to Rs 2,121.34 crore from Rs 1,913.26 crore. Other current assets increased to Rs 3,179.06 crore from Rs 2,079.73 crore, though the filing does not link any of these changes to QIP proceeds.

Capital work-in-progress rose to Rs 408.07 crore at September 30, 2026 from Rs 192.01 crore at March 31, 2026. Cash used for purchases of property, plant and equipment, including capital advances, was Rs 369.52 crore in the six months ended September 30, compared with Rs 66.72 crore in the corresponding period of 2025; however, Hitachi Energy India did not identify the funding source for this expenditure.

What financial results accompanied Hitachi Energy India's QIP update?

Hitachi Energy India reported revenue from operations of Rs 5,490.20 crore for the six months ended September 30, 2026, compared with Rs 3,311.45 crore in the corresponding previous period. Profit before tax increased to Rs 819.91 crore from Rs 529.79 crore, while profit after tax rose to Rs 612.64 crore from Rs 395.96 crore.

For the quarter ended September 30, 2026, revenue from operations was Rs 2,996.51 crore, up 63.5% from Rs 1,832.55 crore in the year-earlier quarter. Quarterly profit after tax was Rs 318.49 crore, compared with Rs 264.36 crore in the corresponding 2025 quarter, and the company identified Power Grids as its sole operating segment.

Second-quarter orders were Rs 4,120.8 crore in Q2FY27, compared with Rs 2,217.1 crore in Q2FY26, according to the company’s November 12 results release. First-half orders, however, were Rs 9,217.3 crore against Rs 13,556.3 crore a year earlier; Hitachi Energy India said orders excluding high-voltage direct current, or HVDC, increased 53.1% year on year in the first half.

Operational earnings before interest, tax, depreciation and amortisation, or Op EBITDA, were Rs 494.4 crore in Q2FY27, compared with Rs 291.6 crore in Q2FY26. The company reported an Op EBITDA margin of 16.5% for the latest quarter, versus 15.9% a year earlier, using revenue from operations as the denominator.

Conclusion

The September disclosure shows that most of Hitachi Energy India's 2025 QIP proceeds had not yet been deployed by the end of the first half of FY27, despite higher revenue, profit and capital expenditure. The company has disclosed the unutilised balance and the bank-deposit amount, but not a detailed allocation of deployed funds or a schedule for the remaining balance.

The next disclosure to watch is whether Hitachi Energy India reports a lower unutilised QIP amount or gives a clearer breakdown of the intended uses and timing of deployment. Management said on November 12 that it had invested in new infrastructure and was strengthening existing capabilities, but the financial-results filing does not connect those initiatives to a specified portion of QIP funds.