Exports, HVDC Projects, and Data Centres Drive

POWERINDIA

’s Growth Story

, a subsidiary of Hitachi Energy Global, has emerged as a pivotal player in India’s power and grid sector. With strong parentage, dominant market share in HVDC projects, and a record order backlog, the company is positioned at the forefront of India’s energy transition. Backed by export momentum, domestic grid upgrades, and structural demand from data centres, Hitachi Energy is scaling capacity and improving margins, though valuations remain demanding after recent corrections. Hitachi Energy Global holds a 71.3% stake, reinforcing strategic and financial strength. The company commands ~80% share in HVDC projects, cementing its leadership in India’s transmission and distribution sector. As of September FY26, Hitachi Energy reported its highest-ever order backlog of ₹29,412.6 crore, equivalent to 4.5x annual revenues. H1FY26 revenues grew 19.2% YoY, with fresh orders worth ₹13,556 crore, ensuring multi-year growth visibility. Exports contribute ~25% of the order book and grew 59% YoY in H1FY26. Despite global trade challenges, export visibility remains strong, providing a high-margin lever alongside domestic projects. India’s grid upgrade, backed by ₹3.4 lakh crore state transmission capex over five years, offers sustained demand. Hitachi’s solutions for gigawatt-scale AI data centres—handling volatile loads up to 10x normal usage—position it well for structural growth in renewables, storage, and automation. Operating an asset-light model, Hitachi Energy plans ₹2,000 crore capex over four years, funded largely by a ₹1,500 crore QIP. Focus areas include high-voltage grid solutions and large transformers. Margins are expected to expand by 300–400 bps to 13.5–14.5%, aided by exports, services, and operating leverage. Q2FY26 margins already rose to 16.3%, highlighting execution strength. The stock corrected from ₹22,755 (Dec 2) to ₹19,535, now trading at 60x FY28 estimated earnings.