Revenue jumps 63.52%, but margin slips as costs outpace growth
Standalone net profit grew 20.48% year on year, but higher costs, a 26.00% tax rate and other income equal to 13.20% of pre-tax profit affected earnings quality.
Filed 12 Nov 2026, 16:28 IST · after market close · Hitachi Energy India Ltd (POWERINDIA)
Key takeaways
- Standalone revenue grew 63.52% year on year, but expenses rose faster at 68.90%, narrowing operating margin by 2.76 percentage points.
- Net profit rose 20.48% year on year to Rs 318.49 cr, with other income contributing 13.20% of pre-tax profit and the tax rate rising 0.91 percentage points.
- Operating margin fell for the second consecutive quarter to 13.56%, though it remained 1.98 percentage points above the 11.58% median for 217 Industrials peers.
Price around the results
Sales growth did not translate into equivalent profit growth
Hitachi Energy India’s standalone revenue rose 63.52% year on year and 20.16% quarter on quarter, but expenses grew faster at 68.90% and 21.59%, respectively. That mismatch limited operating-profit growth to 35.90% year on year and 11.78% quarter on quarter. Net profit growth was lower at 20.48% year on year, as the tax rate increased to 26.00% from 25.09%; other income accounted for 13.20% of pre-tax profit.
Operating margin declined for a second straight quarter
Operating margin narrowed by 2.76 percentage points year on year and 1.02 percentage points sequentially, as costs grew faster than revenue in both comparisons. The margin has now fallen from 16.58% in Q3FY26 to 15.12% in Q4FY26, 14.58% in Q1FY27 and 13.56% in Q2FY27. Even after the decline, it was 1.98 percentage points above the 11.58% median among 217 Industrials peers that had reported.
Grid automation orders support the expansion narrative
Management said the company secured multiple grid automation orders during the quarter, including digital substation control for an HVDC project and a generation plant. Management also said it plans a greenfield large power transformer facility and is expanding HVDC and power electronics capacity. The company said the majority of its capital expenditure is expected to be completed by 2028 and that it is strengthening business-unit service offerings.
Results were filed after market close; stock history shows wide reactions
The standalone results were filed after market close, so there is no reported market reaction yet. Across the last eight result reactions, the stock rose after five and fell after three, with a median absolute move of 10.58%; the recorded moves ranged from -6.96% to 14.16%.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,997 cr | ₹2,494 cr | +20.16% | +63.52% |
| Other income | ₹57 cr | ₹58 cr | -1.58% | -31.20% |
| Expenses | ₹2,590 cr | ₹2,130 cr | +21.59% | +68.90% |
| Operating profit | ₹406 cr | ₹364 cr | +11.78% | +35.90% |
| Operating margin (%) | 13.56% | 14.58% | — | — |
| Interest | ₹3 cr | ₹3 cr | -21.04% | -9.44% |
| Depreciation | ₹30 cr | ₹28 cr | +5.97% | +16.81% |
| Profit before tax | ₹430 cr | ₹390 cr | +10.50% | +21.96% |
| Tax | ₹112 cr | ₹95 cr | +17.36% | +26.38% |
| Net profit | ₹318 cr | ₹294 cr | +8.27% | +20.48% |
| EPS (₹) | ₹71.46 | ₹65.99 | +8.29% | +20.49% |
Operating margin of 13.56% compares with a Industrials sector median of 11.58% across 217 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company secured multiple grid automation orders, including digital substation control for an HVDC project and a generation plant.
Expansion
- The company plans a greenfield large power transformer facility.
- The company is expanding HVDC and power electronics capacity.
- The majority of the company's capital expenditure is expected to be completed by 2028.
New initiatives
- The company is strengthening its business-unit service offerings.
What to watch
- Whether operating margin holds above 13.56% after its second consecutive quarterly decline.
- Whether expenses continue to grow faster than revenue after rising 68.90% year on year against revenue growth of 63.52%.
- Progress on the greenfield transformer, HVDC and power electronics expansion that management said is expected to have most capex completed by 2028.