Hitachi Energy India Posts 90% PAT Surge, Record Order Backlog

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AuthorVihaan Mehta|Published at:
Hitachi Energy India Posts 90% PAT Surge, Record Order Backlog
Overview

Hitachi Energy India Ltd. reported robust Q3 FY26 results with revenue climbing 29.6% year-on-year to ₹2,168.0 crore and Profit After Tax (PAT) surging 90.3% to ₹261.4 crore. Operational EBITDA margin expanded significantly to 15.6% from 10.1% YoY. The company achieved a record order backlog of ₹29,872.2 crore, driven by strong demand in transformers, GIS/AIS, data centers, and renewables. An exceptional item of ₹54.24 crore due to new Labour Codes impacted QoQ PAT slightly.

📉 The Financial Deep Dive

Hitachi Energy India Limited has delivered a strong financial performance for the third quarter and nine months ended December 31, 2025, marked by significant year-on-year growth across key metrics.

The Numbers:

  • Revenue: Operations revenue surged by 29.6% year-on-year to ₹2,168.0 crore. Quarter-on-quarter, revenue saw a healthy increase of 13.2%.

  • Profitability: Profit After Tax (PAT) witnessed a remarkable 90.3% jump YoY, reaching ₹261.4 crore. Profit Before Tax (PBT) before exceptional items grew even more robustly at 118.4% YoY to ₹402.0 crore. Quarter-on-quarter, PBT before exceptional items increased by 13.9%.

  • Margins: Operational EBITDA margin improved significantly to 15.6% from 10.1% in the same period last year, underscoring enhanced operational efficiency and pricing power.

  • Exceptional Items: A notable exception was the impact of new Labour Codes, which resulted in an exceptional item of ₹54.24 crore for the nine months. This impacted the sequential (QoQ) profitability, with PAT seeing a slight decline of 1.1% and PBT after exceptional items falling 1.5%.

The Order Book:

The company bolstered its future revenue visibility by achieving its highest-ever order backlog of ₹29,872.2 crore as of December 31, 2025. Orders secured in Q3 FY26 totalled ₹2,477.6 crore, an impressive 73.7% year-on-year growth (excluding a large order from the prior year's Q3). Key growth drivers included transformers, GIS/AIS, with substantial contributions from data centers and the renewables sector.

🚩 Risks & Outlook

Management expressed a positive outlook, citing the accelerating global and Indian electrification trends and rising demand for AI-ready data centers. India's ambitious energy targets and the EU-India Free Trade Agreement (FTA) are identified as significant opportunities for clean-energy collaboration. The company aims to maintain its leadership in providing sustainable power solutions. However, challenges remain in managing increasingly demanding power systems, which necessitates strong local manufacturing and advanced technological capabilities. A Qualified Institutions Placement (QIP) of approximately ₹2,520.82 crore was approved in March 2025, with a portion yet to be utilized, suggesting potential future strategic investments or capital allocation plans.

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