Shares of Hitachi Energy India rose over 10% on August 10, 2026, following a strong Q1 performance with revenue up 68.6% and profit surging 123.5%. Despite the record order book of Rs 32,222 crore, Motilal Oswal maintained a ‘Neutral’ rating with a revised target of Rs 36,000, citing that high valuations may already reflect the company's growth potential.
Hitachi Energy India witnessed a sharp move in its stock price, rising over 10% on August 10, 2026, after releasing strong first-quarter financial results for FY27. The company posted a net profit of Rs 294.15 crore, marking a 123.5% increase compared to the same period last year. Revenue also showed robust growth, climbing 68.6% to reach Rs 2,493.69 crore during the quarter.
Operational Gains and Order Backlog
The company's profitability saw a clear boost, with operational EBITDA margins expanding to 16.0%, a rise of 450 basis points from the previous year. This improvement was supported by increased operational efficiency and a stronger mix in project execution. A primary contributor to this performance is the company's record order backlog, which now stands at Rs 32,222.1 crore. Excluding large-scale HVDC (High Voltage Direct Current) projects, new order inflows grew by 26.1% year-on-year, showing steady demand from sectors like data centers and industrial infrastructure.
Understanding the Neutral Stance
Following these results, brokerage firm Motilal Oswal revised its price target for the stock to Rs 36,000 from the earlier Rs 32,000. Despite the upward revision in the price target and the solid financial metrics, the brokerage maintained a 'Neutral' rating. The reasoning lies in the company's current valuation. At nearly 90 times its estimated FY27 earnings, the stock is trading at a level where investors have arguably already priced in a significant amount of future growth, including expected wins in large-scale transmission projects.
Risks and Future Monitorables
For investors, the focus will now shift to project execution. While the massive order book provides long-term revenue visibility, the company faces risks common to the power infrastructure sector, such as potential volatility in raw material prices—specifically copper—and the pressure to execute complex, large-scale projects without delays or cost overruns. Additionally, with such a high valuation multiple, the company must consistently deliver on growth expectations to justify these price levels. Investors may continue to track upcoming order inflows and how effectively the company converts its record backlog into realized revenue and cash flow in the coming quarters.