Hitachi Energy Stock Soars 14% on Strong Q3 Results 2026

Introduction

Shares of Hitachi Energy India Ltd. surged by 14% on Friday, February 6, marking the stock's best performance in three months. The significant rally was fueled by the company's impressive third-quarter financial results, which surpassed market expectations, and a confident outlook for the upcoming financial year. The strong performance underscores the company's robust execution capabilities and its strategic positioning within India's growing energy sector.

Stellar Q3 Financial Performance

Hitachi Energy reported a remarkable financial performance for the third quarter. The company's profit after tax (PAT) saw a substantial increase of 90.5%, rising to ₹261 crore from ₹137 crore in the same period last year. This figure also exceeded analyst estimates of ₹235 crore by over 11%. Revenue from operations grew by a healthy 28.52% year-on-year to reach ₹2,082 crore, also beating Street expectations.

The most notable improvement was in the company's operational efficiency. Earnings before interest, tax, depreciation, and amortisation (EBITDA) more than doubled, increasing by 107.23% to ₹345.8 crore from ₹166.87 crore a year ago. Consequently, the operational EBITDA margin expanded by 600 basis points, climbing to 16.61% from 10.3% in the year-ago period. This marks the second consecutive quarter the company has achieved mid-teen margins, signaling sustained profitability.

Market Reaction and Stock Movement

The market responded positively to the strong earnings report. The stock price jumped 14% to trade at ₹21,466 apiece during Friday's session, up from its previous close of ₹19,199. This rally has contributed to the stock's impressive 74.6% gain over the past year, reflecting strong investor confidence in the company's growth trajectory and market leadership.

Management's Confident Outlook

N Venu, the Managing Director and CEO of Hitachi Energy India, provided key insights into the company's strategy and future prospects. He confirmed that the company has maintained its double-digit operational EBITDA guidance for the next financial year. Addressing concerns about rising input costs, Venu stated that approximately 70% of the company's orders are based on flexible pricing models, which helps mitigate the impact of commodity inflation.

He also highlighted significant growth opportunities. The development of AI-ready data centers presents a substantial market, with Hitachi Energy positioned to capture 10-15% of the total data center capital expenditure in India. Regarding competition, Venu noted that while Chinese firms pose a risk, potential policy changes favouring domestic manufacturing could limit direct imports, creating a more favourable environment for local players like Hitachi Energy.

Order Book and Business Momentum

While the company's total order inflow showed an annual decline, this was primarily due to a large High-Voltage Direct Current (HVDC) order in the base quarter of the previous year. Excluding this high-value order, the underlying order inflow demonstrated strong growth, up by over 70%. This indicates healthy demand and robust business momentum across its segments. Management also clarified that no penalties are anticipated for the Maharashtra HVDC project, which further supports margin sustainability.

Analyst Views Remain Bullish

Brokerage firms have maintained a positive stance on Hitachi Energy following the results. Jefferies reiterated its 'buy' rating on the stock, setting a price target of ₹25,000 per share. This target implies a potential upside of 30% from the previous closing price. The brokerage highlighted that the company's EBITDA beat its estimates by 43%, driven by the unexpectedly high margins.

Analysts at Jefferies believe Hitachi Energy is a key beneficiary of the multi-year energy transition in India. They have raised their earnings estimates for FY26-28 by 5-12% and project a 74% earnings per share (EPS) compound annual growth rate (CAGR) between FY25 and FY28. The broader analyst community shares this optimism, with 11 out of 13 analysts covering the stock recommending a 'buy'.

Conclusion

Hitachi Energy India's third-quarter results demonstrate strong operational and financial health, driven by efficient execution and robust demand. The significant improvement in profitability and margins, coupled with a positive management outlook and strong analyst backing, positions the company for sustained growth. As India continues to invest heavily in energy transition, grid modernization, and digital infrastructure, Hitachi Energy appears well-equipped to capitalize on these long-term opportunities.