Hitachi Energy India Reports Over Five-Fold Jump in Q2 Profit on Strong Demand and Execution

Hitachi Energy India Ltd. has reported a substantial increase in its financial performance for the second quarter of fiscal year 2026 (ended September 30, 2025). Net profit surged by over five times to ₹264 crore, a significant jump from ₹52 crore in the same period last year. Revenue saw an 18% year-on-year increase, reaching ₹1,832.5 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) more than doubled to ₹299.3 crore, with EBITDA margins improving from 7% to 16.3%.

The company attributes this impressive growth to robust order execution, strong profit margins, and continued demand from the crucial renewable energy and industrial sectors. N Venu, Managing Director & CEO, emphasized that India's expanding renewable energy capacity necessitates smarter and more resilient power infrastructure, focusing on advanced grid technologies and digitalization, which directly reflects in the company's performance.

Key contributors to the order book were industries and renewables, with exports making up over 30% of total orders. The company also noted sustained growth in its service business, including orders for retrofitting and India's first installation of EconiQ, a sustainable, SF6-free switchgear technology.

Despite global trade uncertainties, Hitachi Energy views India's economy as resilient, backed by steady investments and a favourable policy environment.

Impact: This news indicates strong operational efficiency and market demand for Hitachi Energy India's solutions, particularly in the growing renewable energy and industrial infrastructure space. It suggests positive momentum for the company and potentially for related companies in the energy infrastructure and technology sectors. The successful execution of high-margin orders and innovation like EconiQ further strengthen its market position. This financial performance could positively influence investor sentiment towards the stock and sector. Impact: 7/10.

Definitions: Net Profit: The profit remaining after all expenses and taxes have been deducted from revenue. Revenue: The total income generated from the sale of goods or services related to the company's primary operations. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance. EBITDA Margin: EBITDA divided by revenue, expressed as a percentage, indicating operational profitability. Order Execution: The process of fulfilling orders received from customers. Renewables Sector: Industries focused on energy derived from natural resources like solar, wind, hydro, and geothermal. Industrial Sectors: Businesses involved in manufacturing, production, and other heavy industries. SF6-free switchgear technology: Electrical switchgear that does not use Sulfur Hexafluoride (SF6) gas, which is a potent greenhouse gas, opting for more environmentally friendly alternatives like EconiQ.