Hitachi Energy India CAPEX to ₹4,000 cr by 2028

Board clears fresh ₹2,000 crore in Q4 FY26

Hitachi Energy India said its board, during the quarter four FY26 meeting, approved an incremental capital investment of ₹2,000 crore. The company said this approval is over and above the capital expenditure programme it had announced earlier in October 2024. With the additional approval, Hitachi Energy India’s total cumulative capex commitment now stands close to ₹4,000 crore.

The company linked the investment decision to the demand outlook in the power transmission and grid infrastructure space. It also flagged rising requirements from renewable-energy evacuation and “new age” loads such as data centres. The incremental capex, according to the company’s disclosures, is part of an accelerated execution programme.

Greenfield transformer facility planned at Karjan, Vadodara

A key element of the additional investment is the establishment of a state-of-the-art greenfield large transformer manufacturing facility in Karjan, Vadodara, Gujarat. The company has described the plant as a large-type transformer facility, aimed at strengthening domestic manufacturing capability.

The Vadodara facility is expected to produce large power transformers as well as HVDC converter transformers. In separate reporting around the expansion, the Karjan plant has been described as Hitachi Energy India’s 20th facility in the country, reflecting a broader manufacturing footprint expansion.

Target: factory completion by last quarter of calendar 2028

Hitachi Energy India said it wants to complete the greenfield transformer factory by the last quarter of calendar year 2028. The company framed the timeline as part of an accelerated execution programme, suggesting a fast-tracked buildout versus a regular multi-year capacity addition.

While the company did not provide intermediate milestones in the provided material, it clearly positioned the 2028 completion as central to its plan to add large transformer capacity. The output mix includes both large power transformers and HVDC converter transformers, equipment that is closely tied to high-capacity grid expansion projects.

Order book context: ₹20,000 crore HVDC orders, backlog near ₹30,000 crore

The expansion comes as Hitachi Energy India has reported strong order visibility in high-voltage direct current (HVDC) projects. The company has “locked in” HVDC orders of about ₹20,000 crore, and has cited a total order backlog of nearly ₹30,000 crore.

In another disclosure included in the provided material, Hitachi Energy India reported a record order backlog of ₹29,555 crore. The company’s positioning in HVDC is relevant because HVDC converter transformers are among the products planned at the new Vadodara facility.

Q4 FY26 performance: revenue from operations up 46.2%

Alongside the capex update, the company reported strong financial performance. Revenue from operations increased 46.2% year-on-year to ₹2,754.1 crore, compared with ₹1,883.7 crore a year ago.

The capex approval was disclosed with the company’s Q4 FY26 and FY26 results, along with a dividend recommendation, as referenced in the provided information. The combination of earnings momentum and capex acceleration indicates the company is aligning investment with demand conditions it sees as structural.

Why transformer capacity is a focus now

The Vadodara facility is being positioned to manufacture power transformers at a scale that India’s grid expansion requires. The provided material also notes that this is a scale the domestic ecosystem currently cannot fully supply, creating a local manufacturing opportunity.

Hitachi Energy India has also linked the broader demand cycle to rising power demand, an expanded remit of electrical applications, renewable energy buildout, and data centre growth. In its own framing, the company is investing because it sees strong demand visibility.

Export angle: positioning Vadodara as a global hub

The company is not limiting the new facility to domestic supply. The provided material states that Hitachi Energy India is positioning the Vadodara plant as a primary export hub for transformers and transmission equipment for global markets.

This export orientation matters for two reasons. First, it can diversify end-market exposure beyond India’s utility and grid capex cycle. Second, it places greater emphasis on quality, compliance, and scale in manufacturing, given the standards and reliability requirements typically associated with international transmission equipment supply.

Other India investments mentioned: Mysuru and Chennai

Beyond Vadodara, the provided material references other investments in India. One statement notes an investment of ₹300 crore to enhance manufacturing capability of transformer insulation materials at its Mysuru facility in Karnataka, described as part of the overall ₹2,000 crore India investment announced in October 2024.

A separate update note in the provided material mentions “INR 300 million” for Mysuru, which equals ₹30 crore when expressed in ₹ crore terms. This figure is presented differently across the provided sources and is included here only as reported.

The provided material also references plans to invest ₹2,000 crore to expand the Global Technology and Innovation Centre in Chennai, with an expectation of creating 3,000 new jobs over the next five years.

Market snapshot: stock price and fundraising plan

Following the results and capex announcement, Hitachi Energy India (POWERINDIA) shares were reported trading higher by 0.55% at ₹35,807.30 during Tuesday’s session.

Separately, the company has said it will seek shareholders’ approval to raise up to ₹4,200 crore through issues of equity shares or other securities, including via public or private offering and a qualified institutions placement (QIP). As per the notice referenced in the provided material, voting is scheduled to start at 9 am on January 22 and continue until 5 pm on February 20.

Key figures at a glance

What this means for investors and the sector

The central takeaway from the disclosures is that Hitachi Energy India is scaling manufacturing capacity in anticipation of sustained demand for grid equipment. The decision to expand cumulative capex to nearly ₹4,000 crore and target completion by late 2028 signals a long investment cycle tied to India’s transmission buildout.

The order numbers cited in HVDC and the overall backlog provide context for why converter transformer capacity is being added. If the Vadodara site delivers on both domestic and export ambitions described in the provided material, it would add an additional dimension to the company’s India strategy, combining local capacity building with global supply.

Conclusion

Hitachi Energy India’s board-approved incremental ₹2,000 crore capex takes its cumulative planned investment close to ₹4,000 crore, anchored by a greenfield transformer facility in Karjan, Vadodara. The company has set a completion target for the last quarter of calendar 2028 and has linked the move to strong demand visibility across renewables, transmission, and data centres. Next, investors will track execution progress on the Vadodara facility, updates on the backlog, and the timeline for shareholder approval of the proposed ₹4,200 crore capital raise.