Hitachi Energy India reported a solid performance for Q3 FY26, driven by robust operating momentum and record-high order inflows reaching ₹29,872 crores. Revenues grew 29.6% YoY to ₹2,168 crores, while PBT before exceptional items jumped 118.4% YoY to ₹402 crores. Management highlighted strong macroeconomic tailwinds, particularly in renewables, transmission, and data centers, positioning the company well for sustained growth.
Q3 FY26 Performance Overview
Hitachi Energy India Limited held its Q3 FY26 Analyst Conference Call on February 05, 2026, detailing performance for the quarter ending December 31, 2025. Management expressed satisfaction with the progress made toward key objectives: sustaining growth momentum and enhancing efficiency.
Financial Highlights
The quarter demonstrated significant financial traction across key metrics:
- Order Inflows: Orders stood at ₹2,477.6 crores. Excluding the prior quarter’s large HVDC order, the company achieved 73% YoY growth. Quarter-on-quarter growth was 11.7%.
- Order Backlog: The order backlog reached an all-time high of ₹29,872 crores.
- Revenues: Revenues were ₹2,168 crores, marking a 29.6% growth YoY and 13.2% growth QoQ.
- Profitability: Profit Before Tax (PBT) before exceptional items was ₹402 crores, an impressive 118% increase YoY. PBT margin stood at 18.5%.
- EBITDA: Operational EBITDA reached ₹338 crores, growing 100% YoY, reflecting a margin of 15.6% for the quarter.
- PAT: Profit After Tax was ₹261 crores, representing a 12.1% margin.
For the nine-month period, revenues were up 24% year-over-year.
Strategic Environment and Growth Drivers
Management noted several tailwinds supporting future performance:
Macro and Policy Tailwinds
The recent Union Budget lays a strong roadmap for technology-led growth, especially concerning AI data centers and advanced manufacturing. Furthermore, the newly concluded EU-India Free Trade Agreement is expected to eliminate tariffs on nearly 97% of EU exports to India, boosting supply chain integration in renewables like offshore wind. The US-India trade deal also reduces US tariffs on Indian exports to 18%, enhancing export potential.
Segment Focus
Growth momentum remains strong in renewables (wind and solar), data centers, and industries. While transmission and rail & metro saw a slight QoQ decline influenced by project timing, management expects improvement.
The data center segment is viewed as a significant opportunity, with 90% of AI-ready data centers currently in the US and China, signaling substantial growth potential for India.
ESG and Operational Excellence
Sustainability remains central to the strategy. The company is on track to achieve a 70% reduction in operational CO2 emissions compared to the 2019 base level, well ahead of 2025-2026 targets. Safety metrics also improved, with the Total Recordable Injury Frequency Rate falling to 0.09, surpassing the internal target of 0.19.
Project Execution and Localization
Notable project execution during the quarter included 765 kV reactors, ICTs for solar and wind substations, and a modular 400 kV mobile substation concept gaining traction in Kutch, Gujarat.
Regarding HVDC localization, the company is continuously taking actions to increase value addition, including efforts to localize supply chains in other regions like Australia. The firm remains confident in its capacity to take on large HVDC LCC projects, such as the 6000 MW Barmer project, should they bid.
Future Outlook and Exports
Management confirmed that the order backlog is protected by price escalation formulas covering more than 70% of the portfolio, mitigating commodity pressure risk.
The export strategy is three-pronged, leveraging global feeder factories and allocated markets. The combination is expected to drive exports to 25%-30% of revenues going forward, excluding the impact of the large HVDC project.
Regarding FY27 demand outlook, management views the energy transition as a multi-year growth story, supported by strong demand in transmission and electrification, particularly from data centers.
Q&A Insights
In response to queries on margins, management confirmed that the gross margin fluctuation observed QoQ was primarily due to the product mix being executed. On royalties, it was clarified that these are generally calculated based on overall revenue, excluding inter-company transactions.
Addressing concerns about delays in the Adani HVDC project, management stated clearly that there are no delay-related penalties (LD hits) on account of the company, and commissioning is expected shortly.
Source: BSE
