The shares of the Midcap company specializing in providing energy solutions, including the development, manufacturing, and supply of products and services related to electrical power systems, are in focus after management expects to achieve Double-Digit EBITDA Growth in FY26.
Price action
With a market capitalization of Rs. 51,926.80 Crores on Friday, the shares of Hitachi Energy India Ltd rose by 3 percent after making a high of Rs. 11861.85 compared to its previous closing price of Rs. 11516.00.
About the Company
Hitachi Energy India Ltd (formerly known as ABB Power Products and Systems India Ltd) specializes in providing products, systems, and services for electricity transmission and distribution. Established in 2019 as a joint venture between Hitachi and ABB’s Power Grids and headquartered in Bengaluru, Karnataka, the company operates across various sectors, including utilities, industries, and infrastructure.
Their offerings include advanced technologies such as High Voltage Direct Current (HVDC) systems, transformers, and digital solutions aimed at enhancing power grid efficiency and supporting renewable energy integration.
Guidance of Hitachi Energy
According to the company’s recent interaction, N Venu, managing director and CEO of Hitachi Energy, said that they targeting double-digit revenue growth in FY26 on the back of a strong order pipeline of Rs 19,000 crore.
He also said that the company wouldn’t face a significant impact from the reciprocal tariff policy announced by US President Donald Trump due to the minimum exposure to the US market.
Orderbook Segments Mix
As of FY24, Hitachi Energy India’s order book is segmented as follows: 78 percent from products, 15 percent from projects, and 7 percent from services. As of December 31, 2024, Hitachi Energy India Ltd reported its highest-ever order backlog of Rs. 18,994.4 crore, providing strong revenue visibility for the coming quarters.
This substantial backlog is attributed to a significant high-voltage direct current (HVDC) order aimed at transmitting renewable energy from Gujarat to Maharashtra, along with notable contributions from power quality and substation projects across various sectors.
New Business Unit
A new service business unit will be established starting April 1, 2025, to enhance customer experience and capitalize on service opportunities.
Market Trends and Future Outlook
The management remains optimistic about the energy transition, which is expected to drive growth in the energy segment. India is projected to become the third-largest economy by 2030-31, with significant investments in renewable energy and power transmission. The renewable generation sector alone is expected to attract approximately Rs. 18.8 lakh crores in investments.
Q3 FY25 Performance Overview
Hitachi Energy India Limited reported its highest-ever quarterly order intake of Rs. 11,594.3 crores, marking a YoY growth of 838 percent. Revenue rose by 31 percent from Rs. 1,276.42 to Rs. 1,672 crores, driven by a favorable execution mix and operational efficiencies.
Profit before tax surged four times to Rs. 184 crores, and profit after tax increased nearly five times from Rs. 22.97 to Rs. 138.2 crores. Additionally, Hitachi Energy India became debt-free as of December 31, 2024, due to improved cash collections and advances from projects.
Written by Sridhar J
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