Hitachi Energy India profit more than doubled, but margin slipped sequentially
Revenue growth outpaced costs sharply YoY, while the tax-rate decline and other income also supported earnings.
Filed 07 Aug 2026, 16:53 IST · after market close · Hitachi Energy India Ltd (POWERINDIA)
Key takeaways
- Standalone Q1FY27 net profit rose 123.52% YoY as revenue grew 68.62%, faster than expenses at 60.89%.
- Operating margin fell 0.54 percentage points QoQ to 14.58% as expenses declined less than revenue, extending the decline from Q4FY26.
- Other income contributed 14.82% of pre-tax profit, while the tax rate fell 1.12 percentage points YoY.
Price around the results
Project-led revenue growth lifted standalone earnings
These are standalone results. Revenue grew 68.62% YoY, while expenses rose 60.89%, allowing operating profit to increase 134.67%. Net profit still grew more slowly at 123.52% because the tax charge rose 110.60%.
Margin fell for a second straight quarter
Sequentially, revenue declined 9.45% while expenses fell only 8.88%, so operating margin narrowed by 0.54 percentage points. This was the second consecutive quarterly decline, following the fall from 16.58% in Q3FY26 to 15.12% in Q4FY26. The 14.58% margin was 0.30 percentage points above the 14.28% median for the 78 Industrials peers that had reported.
Orders and transformer expansion add to the execution agenda
Management said the company won its first battery energy storage system project in Andhra Pradesh and a 2GW wind-power evacuation order in Europe during Q1FY27. The company said the Karjan transformer factory is targeted for completion in December 2028, with total transformer-capacity expansion capex of Rs 4,000 crore. Management also said it plans to strengthen business-unit service offerings and expects India's peak power demand to reach 495 GW by 2035.
Earnings quality and market reaction remain the watchpoints
Other income accounted for 14.82% of pre-tax profit, so reported earnings included a meaningful non-operating contribution. The YoY tax-rate decline of 1.12 percentage points also supported net profit growth. The results were filed after market close, so there is no market reaction to assess yet; after the last eight results, the stock rose four times and fell four times, with a median absolute move of 6.96%.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,494 cr | ₹2,754 cr | -9.45% | +68.62% |
| Other income | ₹58 cr | ₹57 cr | +0.64% | +13.35% |
| Expenses | ₹2,130 cr | ₹2,338 cr | -8.88% | +60.89% |
| Operating profit | ₹364 cr | ₹416 cr | -12.68% | +134.67% |
| Operating margin (%) | 14.58% | 15.12% | — | — |
| Interest | ₹3 cr | ₹3 cr | -4.65% | -16.96% |
| Depreciation | ₹28 cr | ₹27 cr | +5.96% | +13.79% |
| Profit before tax | ₹390 cr | ₹443 cr | -12.14% | +120.21% |
| Tax | ₹95 cr | ₹113 cr | -15.53% | +110.60% |
| Net profit | ₹294 cr | ₹330 cr | -10.99% | +123.52% |
| EPS (₹) | ₹65.99 | ₹74.14 | -10.99% | +123.47% |
Operating margin of 14.58% compares with a Industrials sector median of 14.28% across 78 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- India's peak power demand is expected to reach 495 GW by 2035.
Expansion
- The Karjan transformer factory is targeted for completion in December 2028 and will add significant annual production capacity.
- The company says the total capex for the transformer capacity expansion will be Rs 4,000 crore.
New orders
- The company secured its first battery energy storage system project in Andhra Pradesh during Q1 FY27.
- During Q1 FY27, the company won a flagship 2GW wind power evacuation order in Europe.
New initiatives
- The company plans to strengthen its business-unit service offerings.
Problems & risks
- The total recordable injury frequency rate was 0.16 against a target of 0.09.
What to watch
- Whether operating margin recovers from 14.58% after two consecutive sequential declines.
- Whether expenses continue to grow slower than revenue, as they did by 60.89% versus 68.62% YoY.
- Progress on the Karjan transformer expansion against the stated Rs 4,000 crore capex plan.