ICICI Securities has upgraded Hitachi Energy India from 'Add' to 'Buy' rating with a significantly revised target price of Rs 40,000 from Rs 37,800, as reported by Moneycontrol. The brokerage's revised target implies an upside potential of around 23% from the current market price of Rs 32,600. The upgrade follows the company's strong Q1FY27 performance that exceeded expectations across key metrics, with revenue surging 69% YoY to nearly Rs 2,500 crore and profit after tax more than doubling to about Rs 300 crore. ICICI Securities has revised its EPS estimates upward, factoring in stronger than expectation execution, robust order inflows and margin outperformance driven by better operating leverage.
Hitachi Energy India delivered impressive Q1FY27 results with revenue growth of 69% YoY to INR 25 billion and EBITDA margins expanding 410 basis points YoY to 14.6%, translating to ~2.3x YoY growth in EBITDA/PAT to INR 3.6 billion/INR 3 billion. The strong performance was driven by robust and timely execution of order backlog across all businesses. The company's order inflow remained robust at INR 51 billion (+26% YoY, ex-HVDC), taking the order book to a record ~Rs 322.2 billion and providing strong multi-year revenue visibility. The order momentum remained broad-based across renewables, industries, exports and data centres, with the company securing its maiden BESS project, multiple hyperscaler orders and a ~Rs 17 billion offshore wind transmission project in Europe.
Hitachi Energy India's standalone annual financial performance reveals robust growth across key metrics. For the year ending March 2026, the company reported standalone sales of Rs 8,147 crore, a significant increase from Rs 6,384 crore in March 2025, marking a 27.61% growth. Net profit also saw a substantial rise, climbing from Rs 383 crore in March 2025 to Rs 987 crore in March 2026, representing a 157.70% increase. Over the last three years, the company's sales have grown at a CAGR of 35.03% and net profit at 224.35%. The company's Basic EPS increased to Rs 221.63 in March 2026 from Rs 90.36 in March 2025, while Net Profit Margin improved to 12.12% from 6.01% in the previous year. Return on Networth/Equity reached 19.08% and ROCE stood at 25.93%, demonstrating strong operational efficiency.
Nomura believes Hitachi Energy India is positioned to benefit from five key tailwinds: lifecycle service orders for grid automation, expansion of transport infrastructure, multi-fold growth in data centres, energy storage solutions, and the target of ordering one HVDC project per year to enable grid integration. The brokerage expects the company to win two domestic HVDC projects over FY26-29F. Exports continue to strengthen with exports contributing ~25% of revenues and the order book. The HVDC pipeline remains healthy with new greenfield projects expected to be awarded by Q3FY27, while execution of existing projects remains on track and revenue contribution is expected to accelerate from the second and third years of execution. The outlook is further bolstered by new transmission approvals worth ~INR 0.5 trillion in YTD–FY27 and expected transmission bidding of INR 700–900 billion per annum for the next three years.
Hitachi Energy India shares experienced a 2.00% increase, trading at Rs 35,700 on Wednesday afternoon, placing the stock among the top gainers on the Nifty Midcap 150 index. The stock is currently trading above its 20-day and 50-day moving averages, indicating a positive short-term trend. Hitachi Energy India shares jumped over 7% to Rs 35,110.40 on the BSE following the company's strong Q1FY26 results. The brokerage expects EBITDA, revenue and PAT CAGRs of 38%, 48% and 45% respectively over FY26-29F, driven by robust existing order book, healthy order inflows across HVDC and ex-HVDC segments, rising T&D equipment demand from renewable energy capex, and margin expansion from better operating leverage. The company announced a final dividend of Rs 8.00 per share (400%) on May 25, 2026, with an effective date of August 21, 2026, reflecting its consistent dividend payout history and strong cash generation capabilities.
