Hitachi Energy India reported a 68.6% revenue increase and a 123.5% surge in net profit for the first quarter of fiscal year 2027. The company's record order backlog of ₹32,222 crore is being driven by strong demand for power infrastructure and new projects in data centers and energy storage.
Hitachi Energy India has started the new fiscal year with strong financial growth, as demand for power infrastructure continues to rise across the country. In the first quarter of fiscal year 2027, the company reported revenue from operations of ₹2,493.7 crore, marking a 68.6% increase compared to the same period last year. Net profit also rose significantly, climbing 123.5% to reach ₹294.2 crore.
The company’s performance is supported by a massive order backlog totaling ₹32,222.1 crore. This order book provides a clear view of future work, as the company continues to secure new contracts. In the first quarter alone, the firm recorded order inflows of ₹5,096.5 crore. Even without counting large, one-time High Voltage Direct Current (HVDC) projects, the underlying order intake grew by 26.1% compared to the previous year. This suggests that the demand for grid modernization and renewable energy integration remains broad and consistent.
Strategic Shift to Data Centers and Storage
Beyond traditional power transmission, Hitachi Energy India is expanding its business into high-growth areas. The company recently secured its first major Battery Energy Storage System (BESS) contract in Andhra Pradesh. This project, which covers 165 MW and 330 MWh of storage capacity, marks a step in the company’s transition toward providing complete energy management solutions. The firm is also seeing increased demand from the data center sector, where it supplies critical equipment like transformers and gas-insulated switchgear to handle the high power needs of these facilities.
To support this expansion and increase its local manufacturing capacity, the company has begun work on its 20th manufacturing facility in Karjan, Vadodara. This plant is scheduled to be commissioned by December 2028. By manufacturing more equipment locally, the company aims to improve its operational efficiency and better manage its profit margins.
Investor Monitorables and Risks
While the company is seeing strong order growth, investors may keep an eye on operational costs and project execution. The energy sector is highly competitive, and the company must navigate the need for efficient project delivery while managing potential fluctuations in input costs for materials like steel and copper. Additionally, the company’s business model depends on its ability to complete complex, large-scale infrastructure projects on time. Any delays in the supply chain or technical execution could impact financial performance. As the company expands its manufacturing footprint, managing the costs and regulatory requirements of these capital-intensive projects remains important to track.