Hitachi Energy India Ltd. share price target

Hitachi reported a good quarter, on both fronts - earnings and order inflows (OI). It saw revenue growth of 69% YoY to INR 25bn. EBITDA margins expanded 410bps YoY to 14.6% – translating to ~2.3x YoY growth in EBITDA/PAT to INR 3.6bn/INR 3bn.

Hitachi Energy’s 1Q result was ahead of our estimates with a sharp beat on both revenue and PAT. Order inflows (ex-HVDC) grew by 26% YoY to INR51b, taking the order book to INR322b, up 11% YoY.

Since our last recommendation, the stock has witnessed a significant re-rating. While the 3.63x Orderbook/TTM Sales ratio appears robust, it remains disproportionately skewed towards HVDC projects, whereas base business order accretion has remained subdued. The topline for the company is expected to compound at 40% CAGR and earnings are expected to expand at 22% CAGR. However, at prevailing valuation multiples, much of the structural tailwinds are already discounted in the price, and Hitachi trades at a steep premium relative to sectoral peers. That said, the company remains a critical solutions provider...

We attended the analyst meet of Hitachi Energy India and came out enthused by the strong and structural growth opportunities the company can capture. Hitachi energy is gearing well for the future with a strong portfolio of products and solutions. Hitachi Energy posted a strong set of financials for Q4FY26 with EBITDA and PAT beating consensus estimates by ~6%. The management highlighted 5 growth drivers for the long term namely 1) Data Centres 2) Mobility driven electrification 3) 900 GW of non-fossil power by FY36 4) BESS 5) Transmission of 900 GW of non-fossil power. Hitachi Energy has the complete...

Company has announced an additional accelerated capex of ~Rs20bn towards setting up a large power transformer facility in Vadodara, taking the cumulative announced capex to ~Rs40bn almost doubling transformer capacity Exports contributed ~25% to total ex-HVDC revenue, while...

Hitachi Energy’s results came in ahead of our expectations for 4QFY26, led by a beat on both revenue and profitability. For FY26, revenue/EBITDA/PAT grew by 28%/111%/203% YoY.

Hitachi Energy India is a potent play on the strong and growing theme of power transmission in India and across the world. We like the company on the back of (1) Leadership and Rich Proficiency in HVDC Project execution (2) Strong demand drivers and tailwinds for base business and (3) Robust HVDC Pipeline. Hitachi Energy is benefitting from strong demand from end user industries such as utilities, data centres, renewables and railways. Hitachi has already bagged two mega HVDC projects namely Khavda-Nagpur and Bhadla-Fatehpur of 6GW each in FY25 and FY26 respectively which will see increasing revenue...

POWERIND: At the forefront of HVDC ........................................................................................................................................................................................................................................... 5 India's power buildout to drive huge T&D capex ......................................................................................................................................................................................................................... 9 Energy transition led capacity addition attracts capex of ~Rs9.15trn in T&D industry ............................................................................................................................................ 9 Transformers: Crucial piece of the T&D puzzle ............................................................................................................................................................................................................................ 9 Investment Rationale.............................................................................................................................................................................................................................................................................. 12 HVDC Future of High-Efficiency Energy Transmission ..................................................................................................................................................................................................... 12 Seizing the future: ~Rs434bn opportunity for POWERIND over next 3 years from planned HVDC projects with total cost of ~Rs1.0trn ............................ 12 Consolidated HVDC market with steep entry barriers favors POWERIND ............................................................................................................................................................. 13...

Order inflow grew 13.6% YoY to Rs. 2,217.10cr, due to a 16% growth in the railway and metro segment, 40% in the renewables (wind and solar) segment and 10% in the industries segment. However, order inflows declined 43% in the transmission...

Hitachi Energy’s 2QFY26 results beat our estimates on the back of a sharp recovery in EBITDA margins and higher other income. Order inflow was healthy for the quarter, and the bid pipeline also remains strong for the company.

Hitachi's revenue grew during the quarter, driven by efficient order execution and enhanced operational efficiencies. The company experienced a notable influx of new orders, resulting in a strong order backlog for the quarter. This indicates the company has a healthy pipeline, providing better visibility of future performance. The outlook for the sector appears promising, with the government increasing expenditure on renewable energy and implementing favourable policies. These are also expected to drive the company's performance going forward. The company strives to capitalise on emerging opportunities in Data Centers, Services, Exports,...

Hitachi Energy’s 1QFY26 revenue and EBITDA margin came in below our estimates, whereas PAT beat our estimates on the back of higher other income.

Orders from the renewables segment rose a sharp 386% YoY, followed by the transmission segment (91% YoY) and railways and metro (24% YoY). However, orders from data center and industry fell 56% and 33% YoY, respectively, with the management mentioning that this was seasonal. Hitachi Energy has delivered strong financial results, with notable growth in both revenue and profitability. The momentum is expected to continue, driven by the *over or under performance to benchmark index company's strategic positioning in high-growth areas such as HVDC projects, data...

Hitachi reported operating margin of 12.7% (+190bps), ahead of consensus expectations in Q4FY25. The margin was 7% in FY24. It has also guided for double-digit margins in FY26, allaying the street concerns.

Hitachi Energy’s 4QFY25 revenue came in below our estimates, whereas PAT beat our expectations on the back of better margins and higher other income. Order inflow was healthy for the quarter, while FY25 inflow was boosted by HVDC order wins.

Hitachi Energy’s 1QFY25 result came in significantly below our estimates due to a steep decline in margin. The company reported 28%YoY growth in revenue.