Hitachi Energ posts 68% revenue growth on order execution

reported a 68.6% year-on-year surge in revenue for Q1FY27, driven by strong execution across power transmission projects. Order intake stood at Rs 5,097 crore, bringing the order backlog to Rs 32,222 crore. The sharp execution acceleration highlights steady progress in core transmission and renewable evacuation projects like Khavda and Bhadla. Order backlog now stands at roughly four times revenue, providing high revenue visibility over the medium term. Excluding large HVDC orders, underlying order intake rose 26.1% year-on-year, showing healthy demand across domestic and export markets. While headline execution looks strong, the headline figures miss the initial margin drag from newer growth segments like Battery Energy Storage Systems (BESS). Hitachi Energy India secured its first major BESS order—a 165 MW/330 MWh system in Andhra Pradesh. BESS expands the addressable market alongside data centre power supply, but technology maturity and incomplete localization, particularly in power conversion systems, present near-term margin pressure. Margins should improve as localization increases and execution scales over coming quarters. Watch for the award outcome of the greenfield HVDC project expected within six months, progress on the new facility at Karjan due by 2028, and margin progression as higher-value integration projects scale up. The stock trades at 60 times FY28E earnings following a price correction to Hitachi Energy India at Rs 30,630. Valuations remain fair given the strong visibility from the Rs 32,222 crore order book and long-term grid modernization demand. Disclosure: This post is for informational and educational purposes only and should not be construed as investment advice. Investors must perform their own due diligence or consult a SEBI-registered financial advisor before making any investment decisions.