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Informist, Saturday, May 23, 2026

By Afra Abubacker

NEW DELHI – Hitachi Energy India Ltd. is expected to report a sharp rise in net profit for the March quarter, driven by strong project execution and sustained domestic demand for power transmission and distribution equipment from data centres and railways. However, profitability may ease sequentially as margins normalise from elevated levels seen in the previous quarter, according to analysts.

The power equipment maker's standalone net profit for Jan-Mar is expected to rise 67% on year and decline 3% from the previous quarter to INR 3.07 billon, according to the average of estimates from six brokerages. The highest estimate for net profit is INR 3.55 billion by Prabhudas Lilladher Pvt Ltd. and the lowest is INR 2.63 billion by Motilal Oswal Financial Services Ltd.

Hitachi Energy's revenue is expected to rise over 27% on year and over 15% on quarter to INR 24.01 billion in the March quarter, according to the average of estimates. The highest estimate for revenue is INR 26.79 billion by Equirus Securities Pvt Ltd. and the lowest is INR 21.80 billion by HDFC Securities Ltd.

For the December quarter, the company had reported a net profit of INR 2.61 billion, up 90% on year, on revenue of INR 20.82 billion, up 28% on year.

According to brokerages, execution of large high-voltage direct current projects will remain the key driver of growth in the March quarter. "We estimate a robust revenue growth on YoY basis helped by the execution of the Mumbai HVDC, Marinus Link HVDC, and Khavda-Nagpur HVDC projects, and an uptick in the OB (order book) in recent quarters," Equirus said.

Equirus expects order inflows to remain robust in the near-to-medium term, driven by inter-state transmission and distribution, investments in data centres, and railways. Meanwhile, Nuvama Wealth Management Ltd. listed Hitachi Energy and GE Vernova T&D as the top outperformers among capital goods, and Siemens and Thermax as the laggards in the sector.

"Hitachi remains well placed for a strong execution-led growth phase, underpinned by its INR 300 bln order book (~5x FY25 revenue)," Nuvama said.

Power equipment makers such as Hitachi Energy are expected to enter "a multi-year growth phase", as the grid will extend to support a sharp rise in renewable capacity, according to JP Morgan. India's target of 470 gigawatts of solar and wind additions over the next decade is expected to drive demand for transmission infrastructure, JP Morgan said in early April, when it began covering these companies.

Earlier this month, Hitachi Energy India Ltd. said it and Adani Energy Solutions had successfully commissioned one of the world's largest high-voltage direct current city centre infeed in Mumbai, increasing power supply coming from outside the city by 50% to support the daily needs of more than 20 million people.

The company's earnings before interest, tax, depreciation, and amortisation are seen rising over 65% on year and 15% on quarter to INR 3.89 billion, as per the average of estimates. While Prabhudas Lilladher expects EBITDA margins to expand on year due to operating leverage and a favourable product mix, Equirus cautioned that margins are likely to normalise sequentially from elevated levels.

Hitachi Energy India will announce its March quarter earnings on Monday. Analysts will look out for the management's comments on new order inflows, execution timelines of large projects, and gross margin trajectory as multiple projects are under execution. Updates on capital expenditure plan and the impact of volatile commodity prices will also be noted.

Of the seven brokerage reports on the company available with Informist, four have a 'buy' recommendation on the stock, with an average target price of INR 27,198, down 23% from the current market price. Two brokerages have a 'sell' call and one 'hold' call on the stock.

Friday, Hitachi Energy's shares closed 2.5% lower at INR 35,555 on the National Stock Exchange. Since reporting its December quarter earnings, shares of the company have risen 63%.

The following are the Jan-Mar earnings estimates for Hitachi Energy India from six brokerages in descending order of the estimate of net profit in INR billion:

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Edited by Akul Nishant Akhoury

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