Synopsis:
Hitachi Energy India posted strong YoY growth in Q1 FY26, with soaring profit and order inflow, but sequential declines in revenue and margins raise concerns.
During Thursday’s trading session, shares of a global technology leader in electrification and a prominent player in the heavy electrical equipment sector moved down by nearly 6.6 percent on BSE, despite the company reporting a net profit growth of around 1,165 percent YoY in Q1 FY26.
At 02:41 p.m., the shares of Hitachi Energy India Limited were trading in the red at Rs. 20,092.45 on BSE, down by around 3.5 percent, as against its previous closing price of Rs. 20,824.75, with a market cap of Rs. 89,557 crores. The stock has delivered positive returns of around 73 percent in the last one year, and has gained by over 56 percent in the last six months.
What’s the News
According to the latest regulatory filings on the stock exchanges, Hitachi Energy India Limited announced the financial results for Q1 FY26 on Wednesday after market hours.
For Q1 FY26, Hitachi Energy India reported revenue from operations of Rs. 1,479 crores, marking around a 21 percent QoQ decline compared to Rs. 1,884 crores in Q4 FY25, but a year-on-year increase of about 11 percent from Rs. 1,327 crores recorded in Q1 FY25.
The company’s net profit for the quarter stood at Rs. 131.6 crores, reflecting a decline of around 28 percent QoQ compared to Rs. 184 crores in Q4 FY25, but an impressive year-on-year rise of about 1,165 percent from Rs. 10.4 crores recorded in Q1 FY25.At the operating level, EBITDA stood at Rs. 170.2 crores during Q1 FY26, improving by 177 percent YoY but declining by 28 percent QoQ.
In terms of margins, the company reported a PAT Margin of 8.6 percent in Q1 FY26, a jump from 0.8 percent in Q1 FY25 but slightly down from 9.6 percent in Q4 FY25. Similarly, the EBITDA margin improved to 11.1 percent from 4.6 percent in Q1 FY25, but fell from 12.3 percent in Q4 FY25, suggesting margin pressure on a sequential basis despite long-term gains.
As of Q1 FY26, the company’s order book stood at Rs. 11,339.2 crores, up by 417.6 percent QoQ from Rs. 2,190.8 crores and 365.4 percent YoY from Rs. 2436.7 crores. This surge was largely driven by a major win: the Bhadla-Fatehpur High Voltage Direct Current (HVDC) link project.
Hitachi Energy India also secured a bulk order from POWERGRID to supply 30 units of 765-kilovolt (kV) 500 megavoltampere (MVA) single-phase transformers. Segment-wise, transmission continues to dominate the order book, followed by orders from the rail & metro and data centre segments. The company’s order backlog stood at Rs. 29,125.3 crore as of June 2025, offering revenue visibility for the upcoming quarters.
Despite a strong year-on-year performance, particularly in profit and order inflow, Hitachi Energy India reported a weak quarter-on-quarter performance, with revenue, net profit, EBITDA, and both EBITDA and PAT margins showing sequential weakness.
Moreover, the company reported a total Other Income of Rs. 50.94 crores in Q1 FY26, reflecting a rise of around 33 percent QoQ and 56,500 percent YoY. This primarily comprised interest income from bank deposits, security deposits, and other interest-bearing assets.
Furthermore, the stock is currently trading at a price-to-earnings (P/E) ratio of 241, significantly higher than the industry average of 68.4, suggesting that the stock may be overvalued relative to peers at current levels.
Hitachi Energy India Limited, a part of Hitachi Energy Limited, operates through four business units – Grid Automation, Grid Integration, Transformers and High-Voltage Products, offering a variety of products, software, systems and services for energy networks.
The solutions ensure a quality power supply to customers in the field of transmission networks, utilities, transport networks, renewable energy, data centres, industries and many other enterprises.
Written by Shivani Singh
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