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Informist, Wednesday, Feb. 4, 2026

By Gunjan Rajput

MUMBAI –  Hitachi Energy India Ltd. is expected to report a sharp increase in its net profit for the December quarter, driven by strong growth in operating profit on higher margin and operating leverage, even as revenue growth remains comparatively slower, according to analysts.

The company's December quarter standalone net profit is estimated at INR 2.36 billion, up over 72% on year, as per the average of estimates from four brokerages. Sequentially, the net profit is expected to fall 11%. The highest estimate for Hitachi Energy India's net profit is INR 2.72 billion from Motilal Oswal Financial Services Ltd., while the lowest estimate is INR 1.96 billion from Nuvama Wealth Management Ltd.

Hitachi Energy India's revenue is estimated at INR 20.06 billion for the reporting quarter, a 24% increase from INR 16.20 billion a year ago, as per the average of estimates from four brokerages. Sequentially, the revenue is expected to be up over 9%. The highest estimate for the company's revenue is INR 22.03 billion from Motilal Oswal, while the lowest estimate is INR 18.98 billion from Nuvama Wealth Management.

The rise in the company's revenue is likely to be led by healthy execution of the opening order book of INR 294 billion. Key factors to be monitored include further ramp-up in margins, progress on high-voltage direct current project execution, and the execution of export orders, according to Motilal Oswal.

The rise in Hitachi's net profit is driven by the increase in its earnings before interest, tax, depreciation, and amortisation margin, on the back of operating leverage gains and improved order mix. The execution of product and export orders is expected to support revenue and margins in the near term, Motilal Oswal said.

Some brokerages, such as Nuvama Wealth Management, Emkay Global Financial Services Ltd., and HDFC Securities Ltd., flagged near-term margin volatility leading to sequential pressure on earnings, while Motilal Oswal focused on strong year-on-year growth.

Hitachi's margins are expected to remain modest in the December quarter as the effects of legacy orders taper off, Nuvama Wealth Management said.
 

The company's EBITDA is estimated at INR 2.91 billion, up nearly 72% on year from INR 1.68 billion a year ago. Sequentially, EBITDA is expected to be broadly flat from INR 2.91 billion, according to the average of four estimates. The highest estimate for Hitachi's EBITDA is INR 3.52 billion from Motilal Oswal, while the lowest estimate is INR 2.27 billion from Nuvama.

Hitachi Energy will report its December quarter results on Thrusday.

At 1238 IST, the company's shares traded at  INR 19,090 on the National Stock Exchange, down over 3%. The stock has fallen nearly 19% since its September quarter results were announced.

Of the four brokerage reports on the company available with Informist, two have a 'buy' recommendation on the stock with an average target price of INR 25,550 per share. This is nearly 54% higher than the current market price. Two brokerages have a 'sell' recommendation on the stock with an average target price of INR 17,700 per share.

Following are the December quarter earnings estimates for Hitachi Energy from four brokerages in the descending order of the estimate of net profit in INR billion:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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