Hitachi Energy Stock Soars 14% on Stellar Q3 FY26 Results

Introduction: Stock Rallies on Exceptional Earnings

Shares of Hitachi Energy India Ltd. experienced a significant rally, surging 14.09 per cent to reach Rs 21,900 on Friday. This upward momentum followed the company's announcement of a robust financial performance for the third quarter of the fiscal year 2026, which ended on December 31, 2025. The strong results underscore the company's effective execution and its ability to capitalize on sustained market demand.

A Deep Dive into Q3 Financial Performance

Hitachi Energy India reported a remarkable 90.3 per cent year-on-year (YoY) increase in its net profit, which stood at Rs 261.4 crore for the quarter. This substantial growth in profitability was driven by a healthy top-line expansion, with revenue from operations rising by 29.6 per cent YoY to Rs 2,168 crore. The company attributed this performance to a combination of robust demand from both Indian and key international markets, an expanded market share, and the successful implementation of strategic initiatives.

The operational efficiency of the company was equally impressive. Operational EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached Rs 338.4 crore. This translated into a strong operational EBITDA margin of 15.6 per cent, a significant improvement that places the company in a healthy double-digit margin corridor and reflects effective cost management and operational leverage. The Profit Before Tax (PBT) before exceptional items grew by an impressive 118.4 per cent year-on-year to Rs 402.0 crore.

Key Financial Metrics for Q3 FY26

To provide a clear overview of the company's performance, the key financial figures for the quarter are summarized below.

Robust Order Inflow and Growing Backlog

The company's order book reflects strong underlying demand for its products and services. During the quarter, Hitachi Energy secured new orders totaling Rs 2,477.6 crore. When excluding a large, one-off order from the corresponding quarter in the previous fiscal year, this represents a substantial YoY growth of 73.7 per cent. This growth was primarily led by strong demand for transformers (including power, traction, and dry types), reactors, and both gas-insulated switchgear (GIS) and air-insulated switchgear (AIS).

From an end-market perspective, two key sectors emerged as major contributors to the order book: data centres and renewables. This highlights the company's successful alignment with high-growth industries that are central to the global energy transition and digitalization trends. Furthermore, exports played a significant role, accounting for 29.8 per cent of the total orders booked for the quarter, with key orders coming from Southeast Asia and Southern Africa. The company's total order backlog stood at a formidable Rs 29,872.2 crore as of December 31, 2025, providing strong revenue visibility for the upcoming quarters.

Management Commentary on Future Trajectory

N Venu, Managing Director & CEO of Hitachi Energy India Ltd., commented on the results, emphasizing the increasing pace of electrification in India and globally. He noted that the power-intensive growth of artificial intelligence (AI) necessitates strategic infrastructure investments, positioning the company at the forefront of powering AI-ready data centers. Venu also highlighted India's ambitious energy targets, such as achieving 2,000 kWh per capita consumption by 2030, which signals robust needs for capacity expansion and grid reliability. These trends, according to the management, position Hitachi Energy for sustained leadership in the sector.

Strategic Outlook and Market Opportunities

Looking ahead, Hitachi Energy is well-positioned to benefit from several favorable industry trends. The company noted that the recent EU-India Free Trade Agreement (FTA) is expected to strengthen clean-energy collaboration, particularly in renewables and green hydrogen. This agreement could boost opportunities for Indian energy firms by enhancing technology exchange and investment flows, while also supporting exports and attracting long-term capital for infrastructure.

The company acknowledges that the primary challenge is not just supplying electricity but also managing it under increasingly demanding conditions. As India's industrial complexity and urban growth continue, the need for enhanced capacity, control, and coordination in the power system becomes critical. Hitachi Energy aims to address these challenges through a collaborative approach, supported by its strong local manufacturing and technological capabilities. The company's strategic focus on high-growth areas like data centers and Battery Energy Storage Systems (BESS), alongside its core business, provides a diversified and resilient growth path.

Conclusion: Strong Foundation for Sustained Growth

Hitachi Energy India's third-quarter results for FY26 demonstrate a company firing on all cylinders. With significant growth in revenue and profit, expanding margins, and a record order backlog, the company has laid a strong foundation for future performance. The strategic alignment with high-growth sectors like renewables and data centers, coupled with a positive industry outlook, suggests that the momentum is likely to continue. Investors have responded positively to this strong performance, and the company's ability to execute on its large order book will be a key factor to watch in the coming quarters.