Hitachi Energy Q3 Profit Jumps 90% Amid Strong Order Inflow

Introduction

Hitachi Energy India Limited announced a stellar performance for the third quarter of fiscal year 2026, ending December 31, 2025. The company reported a 90.3% year-on-year surge in net profit, underpinned by strong revenue growth, significant margin expansion, and a robust order book. The results reflect sustained demand from key sectors like renewables, data centers, and infrastructure, positioning the company to capitalize on India's accelerating electrification journey.

Detailed Financial Performance

In Q3 FY26, Hitachi Energy India's revenue from operations climbed 29.6% YoY to ₹2,168 crore. This top-line growth was driven by efficient execution of a healthy order pipeline. The company's operational efficiency was clearly visible in its profitability metrics. Operating EBITDA more than doubled, rising 100.4% YoY to ₹338.4 crore. This led to a substantial expansion in the Operating EBITDA margin, which stood at 15.6%, a significant improvement from 10.1% in the same quarter of the previous year. Net profit after tax reached ₹261.4 crore, a sharp increase from ₹137.4 crore in Q3 FY25. The company did note an exceptional item of ₹54.24 crore related to the implementation of new Labour Codes, which impacted the profit before tax.

Key Financial Metrics for Q3 FY26

Order Inflow and Backlog Strength

The company's order inflow for the quarter was strong at ₹2,477.6 crore, marking a 73.7% increase year-on-year when excluding a large order from the base period. This growth was fueled by demand for transformers, reactors, and switchgear. Key growth drivers included the rapid expansion of data centers and the continuous push towards renewable energy integration. Exports also played a significant role, contributing nearly 30% of the total orders, with demand coming from Southeast Asia and Southern Africa. As of December 31, 2025, Hitachi Energy India's order backlog stood at a record ₹29,872.2 crore, providing strong revenue visibility for the upcoming quarters.

Sustained Nine-Month Performance

The strong performance in the third quarter is part of a larger trend of sustained growth throughout the fiscal year. For the nine-month period ending December 31, 2025, the company's revenue grew by 24% YoY to ₹5,603.6 crore. The net profit for the same period saw a remarkable surge of 228.5% YoY, reaching ₹657.4 crore. This highlights the company's consistent ability to execute projects efficiently and manage costs effectively over an extended period.

Management Commentary and Strategic Outlook

N Venu, Managing Director & CEO of Hitachi Energy India, commented on the results, stating, "Our Q3 results highlight the increasing pace of electrification in India and the world. AI's power-intensive growth demands strategic infrastructure investments, and we are proud to be at the forefront." Management highlighted key strategic priorities for FY26, which include maintaining leadership in core segments like renewables and utilities while expanding into high-growth areas such as Data Centers and Battery Energy Storage Systems (BESS). The company is also increasing its focus on exports, services, and digital offerings to diversify its revenue streams.

Market Drivers and Future Prospects

The outlook for Hitachi Energy India remains positive, supported by several macroeconomic tailwinds. India's goal to increase per capita electricity consumption to 2,000 kWh by 2030, coupled with the massive expansion in renewable energy capacity, necessitates significant investments in grid modernization and infrastructure. The rise of power-intensive AI and data centers further fuels this demand. Additionally, potential agreements like the EU-India Free Trade Agreement are expected to enhance collaboration in clean energy, creating new opportunities for exports and investment.

Conclusion

Hitachi Energy India's third-quarter results demonstrate strong operational and financial health. The company's ability to secure large orders, execute them efficiently, and expand margins is a testament to its market leadership and strategic focus. With a record order backlog and favorable industry trends, Hitachi Energy is well-positioned to continue its growth trajectory and play a crucial role in India's energy transition.