Hitachi Energy's orders surge 86%, backlog hits record

POWERINDIA Hitachi Energy India Limited (POWERINDIA) reported Q2 FY27 revenue growth of 63.5% to ₹2,996.5 crore. Net profit increased 20.5% to ₹318.5 crore. The bigger development was order growth. New orders jumped 85.9% to ₹4,120.8 crore, taking the order backlog to a record ₹33,335.4 crore. But there is an important gap between sales and profit growth. Operational EBITDA increased 69.5% to ₹494.4 crore, with margins improving to 16.5%. However, profit before tax grew only 22%. The company also reported an unrealised foreign exchange and commodity-related loss of ₹88.1 crore, which affected reported profitability. Demand is coming from power transmission, utilities and data centres. Export orders grew 41% in Q2, while the services business increased 77%. My view: The order pipeline is exceptionally strong, but investors should focus on how efficiently the company converts this backlog into revenue and cash flow. A ₹33,335 crore backlog provides visibility, not guaranteed profit. Execution timelines, project costs and working capital will determine the actual returns. My stance: Positive on the business outlook, but I would track order execution, operating margins and cash conversion before drawing conclusions about valuation. Disclosure: I do not hold this stock.