Hitachi Energy India Surges 12% After Q2 FY27 Results: 6 Key Things to Know About Its Growth Outlook
Shares of Hitachi Energy India surged nearly 12% after the company reported its Q2 FY27 results, drawing attention to its strong revenue growth, improving operational performance and expanding order book. The company has been benefiting from rising investments in power transmission, renewable energy and grid infrastructure. However, with profit margins showing some moderation, there are several factors investors should consider before evaluating its growth outlook. Here are six key things to know.
Hitachi Energy India Ltd shares were trading around ₹32,037 per share as of November 13, 2026, giving the company a market capitalisation of approximately ₹1.41 lakh crore . The stock's 52-week range stood at approximately ₹16,104–₹38,800 , while its trailing P/E ratio was around 114x . The stock surged 12% after the announcement.
Also Read: Sensex & Nifty 50 | Stock Market Live Updates Today: Nifty Falls 0.35%, Sensex Slips 0.19%; IT and Energy Stocks Gain
1. Revenue Growth Accelerates
Hitachi Energy reported revenue of ₹2,996.5 crore in Q2 FY27, compared with ₹1,832.6 crore in the corresponding quarter last year, registering a growth of 63.5%. Revenue also increased 20.2% sequentially from ₹2,493.7 crore in Q1 FY27. For the first half of FY27, revenue stood at ₹5,490.2 crore, marking a 65.8% increase year-on-year.
The growth was supported by stronger execution across transmission, industrial and data centre projects. The company also secured multiple orders from global hyperscalers, strengthening its presence in the fast-growing data centre infrastructure segment.
2. Operational EBITDA Improves
The company's operational EBITDA increased to ₹494.4 crore from ₹291.6 crore in Q2 FY26, registering a growth of 69.5%. More importantly, operational EBITDA margin improved to 16.5% from 15.9% in the year-ago quarter, indicating better operating performance.
On a sequential basis, operational EBITDA increased 23.6%. However, material costs rose to 61.7% of revenue from 57.5% a year ago. This is an important factor to monitor as higher input costs could put pressure on profitability if the company is unable to maintain cost discipline.
3. Profit Growth and Margin Pressure
Hitachi Energy reported a net profit of ₹318.5 crore in Q2 FY27, compared with ₹264.4 crore in Q2 FY26, registering a growth of 20.5%. Profit before tax also increased 22% to ₹430.4 crore, while H1 FY27 net profit reached ₹612.6 crore, up 54.7% year-on-year.
However, profit growth was considerably slower than revenue growth. PAT margin declined to 10.6% from 14.4% in the corresponding quarter last year, while PBT margin fell to 14.4% from 19.3%. This suggests that investors will need to watch whether the company can convert its strong revenue growth into better bottom-line profitability.
4. Strong Order Book Visibility
One of the key positives in the quarter was the company's order backlog, which stood at ₹33,335.4 crore as of September 2026, increasing 13.3% year-on-year. Fresh order inflows during the quarter reached ₹4,120.8 crore, compared with ₹2,217.1 crore in Q2 FY26, marking an increase of 85.9%.
The company secured orders for transformers and substations from leading EPC players, along with STATCOM and grid automation projects. It also received multiple orders from global hyperscalers for data centre projects. A notable win was the Khavda South–Olpad HVDC project, which includes a cooling system and 22 GIS bays of 420 kV capacity.
A healthy order backlog provides better revenue visibility, although timely execution and conversion of these orders into revenue will remain important.
Also Read: 1:2 Split and 5:1 Bonus Issue: FMCG Stock Jumps 3% After Announcing 104% YoY Increase in Net Profit
5. Exports and Services Drive Growth
Apart from domestic demand, Hitachi Energy is also seeing opportunities in international markets. Export orders increased 41% year-on-year in Q2 FY27 and 184% in H1 FY27, with orders coming from Asia, Africa, the Middle East, Europe and the US, including the TenneT order.
The service business also remained a growth driver, with orders increasing 77% during the quarter and 36% in H1 FY27. The company secured digitally enabled service agreements, augmentation and extension projects, and orders from utilities, industrial customers and EPC players.
This expansion in exports and services can help the company diversify its order pipeline and reduce dependence on a single market or customer category.
6. Capacity Expansion Fuels Future Growth
Hitachi Energy is expanding its manufacturing capabilities across nine facilities to prepare for rising demand in India's power infrastructure sector. These projects cover large power transformers, high-voltage equipment, GIS feeders, HVDC and power electronics, insulation, grid automation and capacitors.
The expansion spans locations such as Karjan, Savli, Mysuru, Halol, Maneja, Peenya, Chennai and Doddaballapura, with the majority of planned capital expenditure expected to be completed by 2028.
The opportunity is supported by India's growing energy requirements. According to the company's datas, India's renewable energy capacity reached 299.25 GW in H1 FY27. Additionally, the proposed investment of ₹68,816 crore in a 1,150 kV transmission system and rising electricity demand from data centres, which could reach 17 GW by 2031-32, present further opportunities.
Also Read: KCP Sugar Q2: Consolidated Net Profit Surges To ₹39.32 Cr On Fair Value Investment Gains
Conclusion
Hitachi Energy's Q2 FY27 performance highlights strong revenue growth, improving operational EBITDA and a healthy order pipeline. Its investments in manufacturing capacity, exports and emerging segments such as data centres could support its next phase of growth. However, the moderation in PAT margins and rising material costs remain important factors to watch. With the stock gaining nearly 12%, investors will also need to assess whether its current valuation adequately reflects these growth opportunities.