Synopsis: Shares surged over 13% after stellar Q2 results showing a 407% YoY profit jump and strong order growth. Backed by a robust order book, renewable demand, and rising capex in power infrastructure, the company remains well-positioned for sustained growth and margin improvement.
The shares of the prominent transformer manufacturer gained up to 13 percent in today’s trading session after the company’s net profit zoomed by 407 percent YoY and 100 percent QoQ in Q2FY26.
With a market capitalization of Rs 90,030.60 crore, the shares of Hitachi Energy India Ltd were trading at Rs 20,198.75 per share, increasing around 12.16 percent as compared to the previous closing price of Rs 17,936.75 apiece.
Q2FY26 Highlights
The shares of Hitachi Energy India Ltd have seen bullish movement after announcing its financial performance in Q2FY26, in which revenue increased by 18 percent on a year-on-year basis from Rs 1,554 crore in Q2FY25 to Rs 1,833 crore in Q2FY26. However, on a Quarter-on-Quarter basis, revenue zoomed by 24 percent from Rs 1,479 crore in Q1FY26 to Rs 1,833 crore in Q2FY26.
Moreover, net profit increased by 407 percent on a yearly basis from Rs 52 crore in Q2FY25 to Rs 264 crore in Q2FY26, meanwhile, on a quarter-on-quarter basis, net profit jumped by 100 percent from Rs 132 crore in Q1FY26 to Rs 264 crore in Q2FY26.
ICICI Securities, one of the well-known brokerages in India, maintained a ‘Buy’ recommendation on this stock with a target price of Rs 24,500 apiece, indicating a potential upside of 22 percent from Tuesday’s price of Rs 20,108.00per share.
ICICI Securities highlighted a strong outlook for India’s power sector, driven by a robust order pipeline, capex plans, and improving margins. With grid upgrades planned to evacuate 900GW and renewable power expected to reach 43% of total consumption by 2030, transmission capex of Rs 3.4 lakh crore is projected over the next five years, boosting HV equipment demand.
Operational Highlights
The company reported strong order growth of 13.6% YoY in Q2FY26, reaching Rs 2,217.1 crore, driven by large gas-insulated and air-insulated switchgear stations and locomotive transformer projects. Key demand came from the industries and renewables segments, while exports contributed 30.4% of total orders, reflecting growing global traction.
Service orders rose 35% YoY, supported by utilities and industries for advanced solutions like HVDC air core reactors, GIS/AIS extensions, and retrofitting projects. Notably, the company secured India’s first EconiQ SF6-free technology order. With an order backlog of Rs 29,412.6 crore, it maintains strong revenue visibility for upcoming quarters.
Recently, Hitachi Energy has acquired a minority stake in Shermco, recently bought by Blackstone, to strengthen North America’s power grid maintenance and reliability. Alongside, it is investing over $1 billion to expand its global Service business, enhance digital solutions like HMAX, and boost workforce capacity, supporting energy infrastructure from generation to industrial electrification.
Hitachi Energy India is a leading technology company driving the nation’s energy transition through advanced electrification and automation solutions. Focused on power transmission, renewable integration, and digital transformation, the company supports India’s sustainable growth with innovative products and services that enhance grid reliability, efficiency, and clean energy adoption.
Written by Abhishek Singh
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.
