Synopsis: A power equipment maker plans a major manufacturing push with a ₹2,000 crore factory investment, targeting India’s fast-growing grid infrastructure demand.
India’s power sector is witnessing a significant capacity push as one of the country’s leading energy equipment makers announces a large-scale manufacturing investment. With grid expansion, data centres, and industrial electrification driving transformer demand, the company is betting big on domestic production to capture a share of India’s multi-lakh crore transmission infrastructure opportunity.
Shares of Hitachi Energy India Limited, with a market capitalization of Rs.1,52,504 crore, are trading at a price of Rs.34,250 i.e. 3% up from its previous closing price of Rs.33,250. It is trading at a P/E ratio of 150.
New Factory, Bigger Ambitions
Hitachi Energy India Limited has announced an investment of approximately ₹2,000 crore to set up a new Large Power Transformer (LPT) factory in Karjan, Vadodara, Gujarat. The new facility is scheduled for completion in FY28 and will complement the company’s existing transformer and insulation factories in Gujarat, Mysore, and Halol.
The Vadodara factory will manufacture a significant volume of power transformers annually, targeting applications including high-voltage transmission, HVDC, power generation, AI data centres, and large-scale industrial use. Planned as a fully digital, LEED-certified facility, it will integrate smart manufacturing technologies and end-to-end digital connectivity to support data-driven operations and quality output.
The investment comes against a strong structural demand backdrop. According to the Central Electricity Authority, India will need transmission infrastructure investments totalling ₹7.93 lakh crore to integrate over 900 GW of non-fossil fuel-based energy by 2035. Hitachi Energy’s new factory is positioned to serve this demand locally, reinforcing its “Make in India” commitment and supporting supply chain development. The project is expected to create more than 1,000 direct and indirect jobs.
On the financial front, Hitachi Energy India delivered a strong FY26 performance. Full-year revenue rose to ₹8,148 crore from ₹6,385 crore in FY25, a growth of around 28% year-on-year. Net profit for FY26 stood at ₹988 crore, compared to ₹384 crore in FY25 – a jump of over 157%. Operating profit margin expanded sharply to 15% in FY26 from 9% in FY25. In Q4 FY26 alone, the company reported revenue of ₹2,754 crore and net profit of ₹330 crore, with an operating margin of 15%.
About the Company
Hitachi Energy India Limited, listed on NSE and BSE as POWERINDIA, is a leading power technology company operating in electrification, grid infrastructure, and industrial solutions. A part of the global Hitachi Energy group, the company has a 77-year presence in India with manufacturing facilities across Gujarat, Mysore, and Halol.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
