Hitachi Energy Profit Soars 90%, Stock Jumps 14% in 2026

Introduction

Shares of Hitachi Energy India surged 14% to an intraday high of ₹21,900 on Friday following the announcement of stellar financial results for the third quarter of fiscal year 2026. The company reported a 90.3% year-on-year increase in net profit, supported by robust revenue growth and strong operational performance. This impressive performance underscores the company's ability to capitalize on the accelerating pace of electrification in India and other key markets.

A Deep Dive into Q3 Financials

Hitachi Energy India's financial performance for the quarter ending December 31, 2025, demonstrated significant strength across all key metrics. Revenue from operations climbed 29.6% to ₹2,168 crore, up from ₹1,672 crore in the same quarter of the previous year. This growth was attributed to strong execution of projects and sustained demand.

The company's profitability saw a more substantial leap. Net profit for the quarter stood at ₹261.4 crore, a sharp increase from ₹137 crore reported in the corresponding period last year. Operational efficiency was a key highlight, with the operational EBITDA margin reaching a strong 15.6%. This reflects the company's focus on cost management and execution of high-margin orders.

Record Order Book Signals Future Growth

A significant indicator of the company's future prospects is its record-high order backlog, which stood at ₹29,872.2 crore as of December 31, 2025. This provides strong revenue visibility for the coming quarters. During the quarter, new orders totaled ₹2,477.6 crore. Excluding a large one-time order from the same period last year, this represents a 73.7% year-on-year increase.

Demand was primarily driven by orders for transformers, reactors, and switchgear. Key sectors contributing to this growth include data centers and renewables, which are experiencing rapid expansion. Exports also played a crucial role, accounting for nearly 30% of the orders, with significant demand from Southeast Asia and Southern Africa.

Market Reaction and Stock Performance

Investors responded positively to the strong earnings report, with Hitachi Energy India's stock price rallying as much as 14% to its day's high of ₹21,900 on the BSE. The stock traded close to its 52-week high of ₹22,840, reflecting strong market confidence in the company's growth trajectory and operational capabilities. The trading volume was also significantly higher than its 20-day average, indicating heightened investor interest.

Management Outlook on Electrification and AI

The management expressed a positive outlook, linking the company's performance to the increasing pace of electrification globally and in India. N Venu, Managing Director & CEO, highlighted that the power-intensive growth of Artificial Intelligence (AI) necessitates strategic investments in infrastructure, positioning Hitachi Energy at the forefront of powering AI-ready data centers.

Management also pointed to India's ambitious target of reaching 2,000 kWh per capita energy consumption by 2030. Achieving this goal will require significant capacity expansion and grid modernization, creating substantial opportunities for the company. Furthermore, the potential EU-India Free Trade Agreement is expected to strengthen clean-energy collaboration, particularly in renewables and green hydrogen, which could boost technology exchange and investment flows.

Brokerages Remain Bullish

Following the strong results, several brokerage firms reiterated their positive stance on the stock, raising their target prices. The consensus among analysts is that the company is well-positioned to benefit from the structural growth story in India's power sector.

These upgrades reflect confidence in the company's ability to sustain its earnings momentum, driven by a strong order book, margin expansion, and favorable industry tailwinds.

Conclusion

Hitachi Energy India's third-quarter performance for FY26 showcases a company in a strong position. The combination of a 90% profit surge, robust revenue growth, and a record order backlog demonstrates excellent operational health. With powerful growth drivers like the energy transition, data center expansion, and grid modernization, the company is well-aligned with long-term secular trends. The positive sentiment from analysts further solidifies the outlook, suggesting that Hitachi Energy is poised for continued growth as it plays a critical role in India's evolving energy landscape.