Hitachi Energy India shares jump 8% as brokerages raise targets after Q2 beat

Hitachi Energy India shares jumped more than 8% to a day’s high of ₹30,855 on NSE on Friday after a strong Q2 execution beat prompted brokerages to raise their price targets, despite pressure on reported margins.

The company’s revenue rose 64% year-on-year to Rs 2,997 crore in the quarter, beating Jefferies’ estimate by 26%. EBITDA increased 36% to ₹406 crore, coming in 6% above the brokerage’s forecast, while reported profit rose 20% to ₹319 crore.

The operational performance was stronger after adjusting for a mark-to-market foreign exchange loss. Nuvama said adjusted EBITDA rose 54.7% to ₹462 crore, while adjusted profit increased 41.7% to ₹375 crore, 4% above its estimate.


The biggest positive for investors was the order pipeline. Hitachi Energy’s Q2 order inflows surged 86% from a year earlier to ₹412 crore, led by transmission, grid automation, data centres and industrial customers. Its order backlog rose 13% to a record ₹33300 crore, equivalent to about four times fiscal 2026 revenue, providing visibility for the next two to three years.

Orders included four transformer and substation packages from two leading EPC companies, a STATCOM project, grid automation contracts, data-centre orders from global hyperscalers and local colocation players, and a digitally enabled service contract for a semiconductor customer.

Exports rose 41% year-on-year, while service orders increased 77%. Brokerages noted that exports and services typically carry margins 300–400 basis points higher than the domestic business.

Hitachi Energy also expects four to five high voltage direct current, or HVDC, projects to be awarded over the next 12–24 months. One project based on India’s first 800 kilovolt VSC technology has already been approved by the National Committee on Transmission.

The company is also positioned for India’s first 1,150 kilovolt alternating-current system, with Equirus noting that Hitachi Energy is the only player in India with a type-tested 1,150 kilovolt transformer. Data centre supplies currently cover India, Southeast Asia and the wider Asia Pacific region.

The earnings beat came with a margin caveat. Reported EBITDA margin contracted to 13.6% from 16.3% a year earlier, while gross margin fell 420 basis points to 38.3% because of product mix and raw material inflation. Equirus also cited a ₹561 million exchange and commodity loss.

Nuvama, however, said EBITDA margin excluding the notional forex loss expanded to 16.5%, supported by operating leverage. Management expects gross margins to normalise towards fiscal 2026 levels as exports and services scale up.

Jefferies raised its price target to ₹45,790 from a closing price of ₹29,125.70 and retained its Buy rating. The brokerage said Hitachi Energy has visibility until 2035, supported by renewable energy additions, grid modernisation and transmission expansion. It expects a 54% earnings per share compound annual growth rate between FY26 and FY29.

Nuvama raised its target to ₹35,750 from ₹35,400 and upgraded the stock to Buy, citing the more than 20% correction since its earlier Hold recommendation. Equirus upgraded the stock to Long from Reduce and set a December 2027 target of ₹32,985, compared with ₹32,895 earlier.

The brokerages also flagged risks including competitive intensity, pricing pressure, working-capital requirements and potential cost overruns or execution delays in HVDC projects. Hitachi Energy’s operating cash flow fell to ₹0.9 billion in the first half of fiscal 2027 from ₹8.7 billion a year earlier, as HVDC contract assets increased.

(Disclaimer: This article has been written by Nikhil Agarwal, who is not a SEBI-registered Research Analyst or an Investment Adviser. Nikhil Agarwal and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimershere)