Markets India

Hitachi Energy’s shares surged 12%, hitting an intraday high of ₹32,070, following a sharp rise in Q2 order inflows and net profit growth.

Hitachi Energy Shares Jump 12% on Record Order Inflows and Profit Rise

Hitachi Energy reported a record 85.9% year-over-year increase in orders to ₹4,120.8 crore for the September 2026 quarter, with net profits rising 21% to ₹318.5 crore. Revenue grew by 63.5%, reaching ₹2,996.5 crore, while Ebitda increased 36% year-over-year to ₹406 crore. The company’s backlog reached a new high of ₹33,335.4 crore as of September 2026.

The strong order inflow and profit expansion signal robust demand for Hitachi Energy’s energy infrastructure solutions, bolstering investor confidence in its market position. Exports grew by 41% year-over-year, contributing significantly to the company's expanded order book. However, margin contraction of 28 bps to 13.5% raises concerns about profitability if HVDC project margins decline.

The firm’s service business saw a notable growth of 77% in Q2 FY27, presenting opportunities to offset potential margin pressures from high-voltage direct current (HVDC) projects. The robust backlog until 2035 supports long-term revenue visibility and reinforces the company's global expansion strategy into Asia, Africa, and the Middle East.

Investors are benefiting from the stock rally and improved financials, while customers and partners gain from increased order volumes. Competitors like Siemens Gamesa and ABB may face pressure due to Hitachi Energy’s expanded backlog.

Motilal Oswal upgraded the stock to 'Buy' with a target price of ₹35,800, while Jefferies maintained its 'Buy' rating at ₹45,790. The company highlighted visibility until 2035 for renewable energy and grid projects.

Hitachi Energy’s Q2 results reflect strong order growth and profitability driven by exports and services. Key uncertainty remains over whether margin pressures from HVDC projects can be offset by high-margin export orders and service expansion.

Topics: RenewableEnergyProjects, ExportExpansion, FinancialGrowthIndia, MarketPerformance, InfrastructureSolutions

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Source: Business Standard