Hitachi Energy Shares Jump Over Nine Percent After Strong Quarterly Results

Hitachi Energy India shares jumped over 9 percent on Friday, November 13, reaching an intraday high of ₹31,194.95 on the BSE after releasing its Q2 FY27 earnings. The company reported a 21 percent year-on-year increase in net profit to ₹318.5 crore, up from ₹264.4 crore in the same period last year.

Financial Growth

Revenue for the quarter surged 63.5 percent to ₹2,996.5 crore compared to ₹1,832.6 crore a year ago. Earnings before interest, tax, depreciation and amortisation increased 36.4 percent to ₹406.3 crore, though the EBITDA margin contracted from 16.3 percent to 13.6 percent. Managing Director and CEO N Venu attributed the growth to operational efficiency and timely order execution.

Orders and Backlog

Order inflows jumped 85.9 percent to ₹4,120.8 crore, driven by transmission orders from utilities, power transformers, STATCOM, cooling systems, and air-insulated switchgear. Data centres emerged as the second-largest contributor, while exports grew 41 percent in Q2 and 184 percent in H1. The services business grew 77 percent in the quarter. This demand lifted the company's order backlog to a record ₹33,335.4 crore.

Brokerage Outlook

Brokerages have maintained a positive outlook on the stock. Jefferies kept a 'Buy' rating with a target price of ₹45,790, citing India's investments in power transmission and renewable energy. Nomura also initiated coverage with a 'Buy' rating and a target price of ₹40,030, pointing to a transmission investment supercycle.

Context

Power equipment manufacturers like Hitachi Energy benefit heavily when utilities upgrade electrical grids to handle renewable energy and new data centres. Order backlogs provide companies with clear revenue visibility for upcoming quarters. Brokerage targets reflect external estimates and are not company guarantees.