Hitachi Energy: Robust Performance Priced In. Maintain ADD
By Prime Research | Last Modified: May 27, 2026 12:40 PM IST
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Hitachi Energy India (HEI) reported a strong Q4FY26 performance, with revenue, EBITDA and APAT beating estimates. Higher share of lower-margin HVDC revenue and INR 315mn forex loss impacted margins, though operating performance remained strong.
The company continues to benefit from a strong transmission order book, increasing exports, grid modernization projects, and emerging opportunities in data centers and BESS infrastructure.
- Q4FY26 financial highlights: Revenue stood at INR 27.5bn (+46.2% YoY), EBITDA at INR 4.16bn (+74.9% YoY), and APAT at INR 3.30bn (+79.7% YoY).
- Margin performance: EBITDA margin improved to 15.1%, driven by operating leverage and strong execution.
- Strong order inflow: Orders worth INR 24.2bn were received during Q4FY26, covering transmission, renewables, rail and data center projects.
- Capacity expansion: The company is investing INR 40bn to expand manufacturing capacity and increase local as well as global market participation.
- Order book strength: Order backlog stood at approximately INR 295.6bn as of March 2026, providing strong revenue visibility.
- Growth outlook: Future growth is expected from HVDC projects, export opportunities, data center demand, and battery energy storage systems (BESS).
Financial Summary (INR mn)
| Particulars | 4QFY26 | 4QFY25 | YoY (%) | 3QFY26 | QoQ (%) | FY26 | FY27E | FY28E | FY29E |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 27,541 | 18,837 | 46.2 | 20,822 | 32.3 | 127,130 | 168,897 | 177,342 | 177,342 |
| EBITDA | 4,163 | 2,380 | 74.9 | 3,453 | 20.6 | 22,693 | 28,375 | 30,343 | 30,343 |
| APAT | 3,305 | 1,839 | 79.7 | 2,207 | 49.7 | 17,759 | 21,346 | 22,181 | 22,181 |
| Diluted EPS (INR) | 74.1 | 41.2 | 79.7 | 49.5 | 49.7 | 398.2 | 478.6 | 497.3 | 497.3 |
| P/E (x) | 75.2 | 72.4 | |||||||
| EV / EBITDA (x) | 54.8 | 50.8 | |||||||
| RoE (%) | 26.6 | 21.8 |
Source: Company, HSIE Research
Change in Estimates (INR mn)
| Particulars | FY27E New | FY27E Old | Chg % / Bps | FY28E New | FY28E Old | Chg % / Bps |
|---|---|---|---|---|---|---|
| Revenue | 127,130 | 129,896 | -2.1 | 168,897 | 175,360 | -3.7 |
| EBITDA | 22,693 | 19,355 | 17.2 | 28,375 | 25,778 | 10.1 |
| EBITDA (%) | 17.9 | 14.9 | 295.0 | 16.8 | 14.7 | 210.0 |
| APAT | 17,759 | 15,190 | 16.9 | 21,346 | 19,687 | 8.4 |
ADD
| CMP (as on 26 May 2026) | INR 35,995 |
| Target Price | INR 31,414 |
| NIFTY | 23,914 |
Key Changes
| OLD | NEW | |
|---|---|---|
| Rating | ADD | ADD |
| Price Target | INR 22,892 | INR 31,414 |
| EPS Change FY27E | +16.9% | |
| EPS Change FY28E | +23.4% |
Key Stock Data
| Bloomberg code | POWERIND IN |
| No. of Shares (mn) | 45 |
| MCap (INR bn) | 1,604 |
| 6m avg traded value (INR mn) | 3,834 |
| 52 Week high / low | INR 36,766 / 16,104 |
Stock Performance (%)
| 3M | 6M | 12M | |
|---|---|---|---|
| Absolute (%) | 41.7 | 62.1 | 120.3 |
| Relative (%) | 49.3 | 73.3 | 127.8 |
Shareholding Pattern (%)
| Dec-25 | Mar-26 | |
|---|---|---|
| Promoters | 71.31 | 71.31 |
| FIs & Local MFs | 7.17 | 6.95 |
| FPIs | 10.69 | 11.68 |
| Public & Others | 10.81 | 10.07 |
| Pledged Shares | – | – |
Source:
- BSE
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