Hitachi Energy Q3 Results: Profit Soars 90% on Record Orders

Introduction

Hitachi Energy India Limited announced a stellar financial performance for the third quarter ending December 31, 2025, underscoring a period of significant growth and operational strength. The company's net profit nearly doubled year-on-year, propelled by robust execution of high-margin orders and sustained demand across key sectors. This performance is further solidified by a record-high order backlog, providing strong revenue visibility for the future.

Stellar Quarterly Performance

In Q3 FY26, Hitachi Energy India posted a consolidated revenue from operations of ₹2,168.0 crore, marking a substantial 29.6% increase compared to the same period last year. The growth was even more pronounced on the profitability front. Profit After Tax (PAT) surged by an impressive 90.3% year-on-year, reaching ₹261.4 crore. This significant jump in profitability reflects the company's focus on operational efficiency and a favorable product mix. Sequentially, revenue grew by 13.2%, demonstrating sustained momentum from the previous quarter.

Margin Expansion and Operational Efficiency

A key highlight of the quarter was the remarkable improvement in margins. Operational EBITDA grew by 100.4% YoY to ₹338.4 crore. Consequently, the Operational EBITDA margin expanded significantly to 15.6%, a 550 basis point improvement from 10.1% in Q3 FY25. Similarly, the net profit margin improved to 12.1%. The company did note an exceptional item charge of ₹54.24 crore during the quarter, related to the incremental impact of new Labour Codes. This one-time charge resulted in a marginal 1.1% sequential dip in PAT but does not detract from the strong underlying operational performance.

Record Order Book Signals Future Growth

Hitachi Energy India achieved its highest-ever order backlog, which stood at a formidable ₹29,872.2 crore as of December 31, 2025. This robust backlog provides clear visibility for future revenues. The company received new orders worth ₹2,477.6 crore in Q3 FY26. When adjusted for a large, one-time order in the previous year's corresponding quarter, this represents a 73.7% YoY increase. The demand was driven by key segments including transformers, switchgear, and high-growth areas like data centers and renewables. Export orders constituted nearly 30% of the total, with significant traction from Southeast Asia and Southern Africa.

Strong Liquidity and Capital Position

The company maintains a strong and healthy balance sheet. Following a Qualified Institutions Placement (QIP) in March 2025 that raised approximately ₹2,520.82 crore, a significant portion of these funds remains available for strategic initiatives. As of December 31, 2025, an amount of ₹2,365.74 crore was unutilized, primarily held in bank deposits. This strong liquidity position equips the company to fund future capacity expansions and capitalize on emerging market opportunities without relying on external debt.

Management Commentary and Strategic Outlook

N Venu, Managing Director & CEO of Hitachi Energy India, attributed the strong results to the accelerating pace of electrification both in India and globally. He emphasized that the power-intensive growth of Artificial Intelligence (AI) demands strategic infrastructure investments, positioning the company as a key enabler for AI-ready data centers and a sustainable energy future. Management highlighted India's ambitious goal of reaching 2,000 kWh per capita energy consumption by 2030, which will necessitate significant capacity expansion and grid modernization.

Market Drivers and Opportunities

The outlook for Hitachi Energy remains positive, supported by several macroeconomic tailwinds. The global transition towards sustainable energy, coupled with India's domestic push for electrification and grid reliability, creates a fertile ground for growth. The company is well-positioned to benefit from investments in renewable energy integration, grid modernization, and industrial automation. Furthermore, the potential finalization of the EU-India Free Trade Agreement is seen as a catalyst that could boost collaboration in clean energy technologies like green hydrogen and enhance export opportunities.

Conclusion

Hitachi Energy India's Q3 FY26 results demonstrate a company firing on all cylinders. With robust revenue growth, expanding margins, and a record order backlog, the company has showcased strong execution capabilities. Its strategic alignment with high-growth sectors like data centers and renewables, combined with a solid financial position, positions it well to capitalize on the long-term trends of global decarbonization and India's energy transition journey.