Shares of Hitachi Energy India reached an all-time high on Wednesday, following the company’s announcement of a significant increase in Q4FY26 earnings and plans for capacity expansion. The stock peaked at ₹37,695 during the session before closing at ₹37,550, a 4.32 per cent increase from the previous close of ₹35,995 on the National Stock Exchange (NSE).
For the March quarter, Hitachi Energy reported a 79.7 per cent year-on-year increase in consolidated net profit, totaling ₹330.5 crore, compared to ₹183.9 crore in the same period last year. Revenue from operations also saw a substantial rise, climbing 46.2 per cent year-on-year to ₹2,754.1 crore in Q4FY26, up from ₹1,883.7 crore a year earlier.
In fiscal year 2026, the company’s net profit more than doubled to ₹987.8 crore from ₹384 crore in FY25, while revenue increased to ₹8,147.7 crore from ₹6,384.9 crore. The board has approved a final dividend of ₹8 per share for FY26.
Global brokerage Jefferies maintained a Buy rating on the stock and raised its target price significantly from ₹25,000 to ₹43,145. They noted that demand trends remain robust and that high-voltage direct current (HVDC) projects are likely to bolster growth and margins over the medium term. Jefferies anticipates earnings per share to grow at a 58 per cent CAGR from FY26 to FY28.
HDFC Securities lauded Hitachi Energy’s strong operational performance in Q4FY26, with revenue, EBITDA, and adjusted profit after tax all exceeding estimates. However, they cautioned that the rising contribution from lower-margin HVDC projects could dilute overall margins. Despite this, they retained an Add rating and increased the target price to ₹31,414, citing a solid order pipeline, export opportunities, demand from data centers, and new product introductions like battery energy storage systems.
Conversely, some brokerages expressed caution, noting that valuations for Hitachi Energy may be stretched. Nuvama Institutional Equities acknowledged the company’s strong growth outlook, supported by significant execution momentum and a ₹2.95 lakh crore order backlog, along with fresh ₹20 billion capital expenditure plans for transformer capacity expansion. Nevertheless, they maintained a Hold rating, citing concerns over valuation despite raising the target price to ₹34,200.
Motilal Oswal highlighted robust opportunities in transmission, renewables, exports, and data centers, while also mentioning the company’s plans for an additional ₹2,000 crore capex on existing expansion initiatives. They reiterated a Neutral rating with a revised target price of ₹32,000.
Emkay Global downgraded their rating to Reduce from Add, lowering their target price to ₹28,700 from ₹20,825. The downgrade was attributed to elevated valuations that limit further upside potential, despite improving earnings visibility.
Prabhudas Lilladher expressed a positive long-term outlook for Hitachi Energy, noting its leadership in HVDC technology, a healthy order pipeline, a robust order book of ₹29,560 crore (3.6 times total trailing revenue), increasing demand from high-growth sectors like data centers and BESS, and strong global backing that may drive margin expansion.
Currently, the stock trades at a price-to-earnings ratio of 109.1x/76.0x based on FY27/FY28 earnings estimates. The domestic brokerage downgraded its recommendation from Hold to Reduce, citing a sharp increase in the stock price that places its valuation at a price-to-earnings ratio of 65x based on March 2028 estimates, with a target price of ₹30,768, adjusted from ₹26,108.
Published on May 27, 2026.
