Hitachi Energy Q1 FY27 Earnings Call — Analysis (NSE: POWERINDIA)
Hitachi Energy India started FY27 with robust 68.6% YoY revenue growth and 135% YoY operational EBITDA surge, driven by strong execution of its record order backlog.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q1FY27 Revenue from operations ₹2,493.7 Cr ( +68.6% YoY ) . New story: Capacity expansion for Make in India .
Results
Revenue ₹2,493.7 Cr +68.6% YoY; Operational EBITDA ₹399.9 Cr +135% YoY; PBT up 120.2% YoY; Order intake ₹5,096.5 Cr (+26.1% YoY ex-HVDC); Order backlog ₹32,222.1 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from operations | ₹2,493.7 Cr | +68.6% | yoy · Q1FY27 |
| Operational EBITDA | ₹399.9 Cr | +135.0% | yoy · Q1FY27 |
| Order intake | ₹5,096.5 Cr | +26.1% | yoy · Q1FY27 · ex-HVDC |
| Order backlog | ₹32,222.1 Cr | point_in_time · Q1FY27 · as of Jun-26 | |
| PBT margin | 15.6% | none · Q1FY27 | |
| PAT margin | 11.8% | none · Q1FY27 | |
| Export revenue share | ~25% | none · Q1FY27 · of revenue |
What management committed to
- A full greenfield HVDC project currently under bidding is expected to be awarded in 6 months. — Q3FY27
- The Karjan transformer factory will be commissioned by December 2028. — Q3FY29
- Railway and metro project orders are expected to pick up from the second half of FY27. — Q3FY27-Q4FY27
Key themes
Order execution, new capacity and BESS/data center wins
How the narrative shifted
- Grid investment super-cycle: Management portrays India's electricity demand growth and transmission infrastructure investments as an unprecedented, multi-year structural tailwind.
- Capacity expansion for Make in India: New Karjan factory start of construction signals commitment to expanding domestic manufacturing footprint to capture growing demand and support 'Make in India'.
- Execution converting backlog: Strong revenue growth driven by execution of record order backlog; operational leverage and disciplined execution leading to profitability expansion.
- Export market diversification: Export revenue share of ~25% and major European wind evacuation order demonstrate global competitiveness and de-risking of domestic concentration.
- BESS and data center new demand: First BESS project and multiple data center orders validate entry into high-growth segments, with scalable solutions offering future revenue potential.
- FX and mix margin headwinds: Unrealized forex loss of ₹36.37 Cr and product mix shift caused slight YoY gross margin contraction, but overall cost ratios consistent.
- Manageable competitive landscape: Management downplays threat from new Chinese entrants, emphasizing level playing field and existing competitive ability.
Operational commentary
- Secured first Battery Energy Storage System (BESS) project – 165 MW/330 MWh in Andhra Pradesh, validating grid integration and power quality capabilities.
- Won 2 GW wind power evacuation project in Europe, comprising three transmission links with a combined order value of ~₹1,700 Cr.
- Multiple data center orders from hyperscalers, including a 40×2500 kVA project in Hyderabad; launched ‘Grid to rack solution’ for data centers.
- Began construction of 20th manufacturing facility in Karjan, Vadodara, with targeted commissioning by December 2028; facility to be fully digital and smart.
- Export revenue contribution reached ~25%, with strong order pipeline across domestic and export markets.
- Executed key projects: GIS substation for iron ore plant, 220 kV bays in Odisha, 220 kV GIS in Mumbai, and 1,000 MW Kudus-Aarey HVDC transmission project.
- Railway & metro orders temporarily soft; H2 FY27 pick-up expected; Kinet Railway Solutions/Vande Bharat sleeper trains present future traction transformer opportunity.
Analyst Q&A
Q. What is the quantum of the 2 GW TenneT order and are more orders expected globally?
The order is a combination of three orders with approximate value around INR 1,700 Cr. We look more at services and support from here.
Q. On gross margin, there seems to have been a contraction of over 350 basis points; what drove it?
Initially, CFO said gross margin improved QoQ and YoY. After analyst pressed for YoY comparison, CFO corrected: 'When we compare the gross margin with the same period last year, there is some contraction, which is mainly because of the product mix that we have executed.'
Q. Request for breakdown of order backlog between HVDC and non-HVDC
We do not give specifically how much is HVDC. We have not given so far. So, you should please respect that.
Research and educational content only. Not investment advice.