Hitachi Energy India’s profit jumps 80% YoY as margin slips QoQ
Revenue grew 46.21% YoY, but expenses rose 34.59% QoQ against 32.27% revenue growth, pulling operating margin down to 15.12%.
Filed 25 May 2026, 19:42 IST · after market close · Hitachi Energy India Ltd (POWERINDIA)
Key takeaways
- Standalone net profit rose 79.71% year on year to Rs 330.46 cr, helped by revenue growth outpacing expenses.
- Operating margin improved 2.49 percentage points year on year but fell 1.46 percentage points sequentially as costs grew faster than revenue.
- Other income contributed 12.94% of pre-tax profit, making a material contribution to reported earnings.
Price around the results
Profit growth was led by revenue scale
Hitachi Energy India reported standalone revenue growth of 46.21% year on year in Q4FY26, while operating profit grew 74.93%. Net profit growth was lower at 79.71% because interest fell 42.57% year on year, partly offsetting the earnings lift from operations. The company’s 15.12% operating margin was 0.54 percentage points below the 15.66% median for 71 Industrials peers that had reported the quarter.
Sequential margin loss followed faster cost growth
Quarter on quarter, revenue increased 32.27%, but expenses rose faster at 34.59%, narrowing operating margin by 1.46 percentage points. This reversed the margin expansion seen from 10.47% in Q1FY26 to 16.32% in Q2FY26 and 16.58% in Q3FY26. The tax rate also rose 0.63 percentage points sequentially, adding to the pressure below operating profit.
Other income was material to pre-tax profit
Other income rose 81.78% sequentially and accounted for 12.94% of pre-tax profit. That makes the quarter’s earnings quality less purely operating-led than the headline profit growth suggests. The tax rate was broadly unchanged year on year at a change of 0.01 percentage points, so the year-on-year profit increase was not driven by a lower tax rate.
The initial stock reaction was milder than its usual result-day move
The stock gained 1.01% on the first trading day after the results and was up 5.37% after one day, before turning 1.25% lower after five days. Its recent result reactions have been more often negative than positive, with five declines and three rises across eight instances. The typical absolute move was 6.96%, making the early response smaller than its usual post-result swing.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,754 cr | ₹2,082 cr | +32.27% | +46.21% |
| Other income | ₹57 cr | ₹32 cr | +81.78% | +50.30% |
| Expenses | ₹2,338 cr | ₹1,737 cr | +34.59% | +42.05% |
| Operating profit | ₹416 cr | ₹345 cr | +20.55% | +74.93% |
| Operating margin (%) | 15.12% | 16.58% | — | — |
| Interest | ₹3 cr | ₹3 cr | +35.97% | -42.57% |
| Depreciation | ₹27 cr | ₹27 cr | +1.13% | +14.40% |
| Profit before tax | ₹443 cr | ₹348 cr | +27.48% | +79.73% |
| Tax | ₹113 cr | ₹86 cr | +30.72% | +79.82% |
| Net profit | ₹330 cr | ₹261 cr | +26.41% | +79.71% |
| EPS (₹) | ₹74.14 | ₹58.65 | +26.41% | +71.82% |
Operating margin of 15.12% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.01% | +1.50% |
| Next session | +5.37% | — |
| 5 sessions | -1.25% | +1.36% |
| 15 sessions | +0.88% | — |
| 30 sessions | -8.49% | — |
Volume on the results session was 3.82× its 20-day average.
What to watch
- Whether operating margin recovers from 15.12% after the sequential decline of 1.46 percentage points.
- Whether revenue growth remains ahead of expense growth after the Q4FY26 gap of 46.21% versus 42.05% year on year.
- Whether other income remains below its 12.94% share of pre-tax profit.