Hitachi Energy India Strengthens Growth Trajectory with Record Rs. 29,555 Crore Order Backlog and Rs. 2,000 Crore Expansion Plan

Hitachi Energy India Strengthens Growth Trajectory with Record Rs. 29,555 Crore Order Backlog and Rs. 2,000 Crore Expansion Plan

Strong demand from renewable energy, data centers, electrification and grid modernization drives growth; company announces major manufacturing expansion to capitalize on India's evolving power infrastructure needs

The Electrical Post

India's accelerating energy transition, rapid industrialization and growing electricity demand are creating unprecedented opportunities for power infrastructure companies.

Positioned at the center of this transformation, Hitachi Energy India has delivered another year of strong operational and financial performance, supported by robust order inflows, successful project execution and strategic investments aimed at strengthening future growth.

Hitachi Energy India Limited is a prominent leader in power grid technologies and electrification, operating as a key subsidiary of the global Hitachi Energy group (formed via a joint venture blending Hitachi and ABB's power grid businesses).

Speaking during the company's Q4 FY26 earnings conference call, Managing Director and CEO Mr. N. Venu highlighted that the company's growth continues to be driven by consistent execution, a resilient business model, strong customer relationships and sustained demand across multiple sectors.

One of the most significant milestones for the company is its record order backlog of ₹29,555 crore as of March 31, 2026. The sizeable order book provides strong revenue visibility for the coming quarters and reflects continued customer confidence in Hitachi Energy India's ability to execute large and technologically complex projects.

According to Mr. Venu, the strong backlog demonstrates the company's capability to win and deliver critical grid infrastructure projects across India. The company remains optimistic about future opportunities arising from the country's expanding power sector and energy transition initiatives.

Landmark Mumbai City Infeed Project Commissioned

A major highlight of FY26 was the successful commissioning of India's first city infeed project in Mumbai, based on advanced Voltage Source Converter (VSC) technology.

The project, which has a capacity of 1,000 MW, includes complete design, engineering, supply, erection and commissioning of HVDC converter stations at Aarey and Kudus. The infrastructure is designed to strengthen Mumbai's power supply by injecting 1,000 MW directly into the city's grid.

Mr. Venu described the project as one of the most advanced engineering models executed in India and emphasized its importance in supporting the growing energy needs of Mumbai. He noted that the project is already operational and delivering power to the city.

The successful completion of the Mumbai City Infeed Project further reinforces Hitachi Energy India's position as a trusted partner in the country's critical transmission infrastructure sector.

India's Power Demand to Drive Long-Term Growth

The company believes India's electricity demand is entering a prolonged growth phase that will extend over the next decade.

Several factors are expected to contribute to this expansion, including industrial growth, renewable energy integration, electric vehicle adoption and the rapid emergence of new-age load centers such as data centers.

The increasing deployment of artificial intelligence and digital technologies is also contributing to higher electricity consumption, creating new demands on transmission and distribution networks.

As the grid becomes more complex with higher load densities and stricter reliability requirements, investments in transmission infrastructure, distribution modernization and grid technologies are expected to rise significantly.

Hitachi Energy sees substantial opportunities across multiple sectors, including renewable energy, industrial infrastructure, railways, data centers and electrification projects.

The company also highlighted improving financial health among electricity distribution companies (DISCOMs), which is enabling increased spending on distribution infrastructure and supporting additional growth opportunities.

Strong Financial Performance in Q4 FY26

Hitachi Energy India reported strong operational momentum during the quarter ended March 31, 2026.

During Q4 FY26, the company recorded orders worth ₹2,422.5 crore, representing a year-on-year growth of 10.6%. Revenue for the quarter reached ₹2,754.1 crore, reflecting an impressive growth of 46.2% compared with the corresponding period of the previous year.

Profitability also improved significantly during the quarter. Profit before tax stood at ₹443.4 crore, while profit after tax reached ₹330.5 crore, demonstrating the strength of the company's operating performance and execution capabilities.

The management attributed the performance to healthy project execution, improved operational efficiency and continued demand across key business segments.

FY26 Delivers Record Results

For the full financial year FY26, Hitachi Energy India reported another year of strong growth despite operating on a high base.

Order intake for the year reached ₹18,456.5 crore, representing a growth of 1.6% over FY25. Revenue increased by 27.6% to ₹8,147.7 crore.

The company's profitability witnessed remarkable expansion during the year. Profit before tax surged by 166.3% to ₹1,375.2 crore, while profit after tax increased by 157.3% to ₹987.8 crore.

Annual EBITDA margin stood at 15.4%, reflecting improved operational efficiency and effective cost management.

Another noteworthy achievement was the company's strong cash generation. Operating cash flow for FY26 reached ₹1,746.3 crore, providing additional financial flexibility to support future expansion initiatives.

The most striking figure, however, remains the record order backlog of ₹29,555.3 crore, representing a year-on-year increase of 53.6%, underlining the company's strong market position and future revenue visibility.

Multiple Projects Successfully Executed

Beyond the Mumbai City Infeed Project, Hitachi Energy India successfully commissioned several strategic projects across the country during FY26.

These include renewable energy substations at Barmer, transformer supplies to leading utilities, AIS substation projects in Rajasthan and several other transmission and power infrastructure developments.

According to management, these projects demonstrate the company's ability to execute diverse and technically demanding assignments across different geographies and customer segments.

The successful execution of such projects continues to strengthen customer confidence and support future business opportunities.

Growth Across Emerging Segments

The company reported healthy order inflows across several growth sectors during FY26.

Industry, railways, renewable energy and data centers emerged as major contributors to order growth. Management noted that a slight decline in transmission sector order intake was primarily due to the exceptionally large transmission orders booked during FY25, resulting in a comparison mismatch rather than a slowdown in demand.

The rapid expansion of data centers in India is increasingly becoming a key growth driver. As digital infrastructure continues to expand, demand for reliable power quality solutions, transformers and grid technologies is expected to rise substantially.

Similarly, accelerating renewable energy installations are driving investments in transmission infrastructure required to integrate non-fossil fuel power into the national grid.

Sustainability Achievements Strengthen ESG Credentials

Alongside financial and operational performance, Hitachi Energy India continued to make progress in sustainability initiatives.

During FY26, the company surpassed its water reduction targets by achieving an 11% reduction compared with its 2019 baseline through recycling programs and deployment of efficient water management systems.

A major achievement was the recognition of its Halol facility in Gujarat with a Water Positive Index certification, highlighting the company's commitment to responsible water stewardship.

The company also announced that both its Halol and Mysore facilities have received Platinum Certification for Zero Waste to Landfill, demonstrating continued progress in circular resource management and waste reduction initiatives.

Management emphasized that sustainability remains an integral component of the company's long-term business strategy.

Board Approves Additional ₹2,000 Crore Investment

One of the most important announcements during the quarter was the approval of an additional ₹2,000 crore investment by the company's Board of Directors.

The investment will primarily support capacity expansion and manufacturing growth in India. A major portion of the capital will be used for establishing a state-of-the-art greenfield large power transformer manufacturing facility at Karjan in Vadodara, Gujarat.

The facility will manufacture large power transformers as well as HVDC converter transformers and is expected to begin production by the last quarter of calendar year 2028.

Management indicated that groundwork for the project commenced in June 2026, with the company aiming for accelerated execution of the manufacturing expansion program.

Importantly, the newly announced ₹2,000 crore investment is in addition to the capital expenditure program announced in October 2024. With this latest approval, Hitachi Energy India's cumulative investment commitment now approaches ₹4,000 crore.

Expanding Existing Product Capacity

Mr. Venu clarified that the new investment is not intended to address product gaps but rather to significantly expand capacity for existing high-demand products.

The company already manufactures large power transformers at its existing facility in Maneja, Vadodara. However, growing market demand requires additional manufacturing capacity to produce a larger number of transformers simultaneously.

In addition, Hitachi Energy is expanding its power quality manufacturing operations in Bengaluru. The company currently operates six production lines for power quality products and plans to add two additional lines, increasing the total to eight.

Management expects strong demand for power quality solutions as industries, utilities, renewable projects and data centers increasingly seek advanced technologies to improve grid reliability and efficiency.

Positioned for India's Energy Future

Looking ahead, Hitachi Energy India remains confident about the long-term outlook for the power sector.

The company believes that energy transition initiatives, renewable energy integration, grid expansion, industrial growth, EV adoption and rising digital infrastructure investments will continue to create significant opportunities over the coming years.

At the same time, global geopolitical developments are reinforcing the importance of energy security, domestic manufacturing capabilities and resilient power infrastructure.

Supported by a record order backlog, expanding manufacturing footprint, advanced technology portfolio and proven execution capabilities, Hitachi Energy India appears well positioned to participate in India's next phase of power sector growth while strengthening its role in the country's energy transition journey.
 

Published at : Aug 31, 2026 08:02 AM (IST)

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