Shares of Hitachi Energy India Ltd surged to a new all-time high on Wednesday, May 27, 2026, driven by the company's robust fourth-quarter (Q4 FY26) financial results. The stock climbed 3.94 percent to hit Rs 37,398.25, closing at Rs 37,280.05, marking an impressive 101.73 percent gain year-to-date.
Strong Q4 Performance Fuels Rally
The significant rally is attributed to Hitachi Energy India's better-than-expected Q4 FY26 performance, which saw strength across both revenue and profitability. For the full fiscal year 2026, the company reported substantial growth, with revenue increasing by 28 percent, EBITDA by 111 percent, and profit after tax (PAT) by 203 percent year-on-year. Total order inflows for FY26 stood at Rs 18,500 crore, a 2 percent increase from the previous year, with domestic orders remaining largely flat when excluding exports.
Analyst Views and Future Outlook
Following the earnings report, domestic brokerages have largely maintained a neutral-to-positive stance on Hitachi Energy India shares, though some have highlighted valuation concerns. Motilal Oswal Financial Services (MOFSL) noted the company's strong results, particularly in revenue and profitability, and expects domestic ordering momentum to improve. MOFSL reiterated a 'Neutral' rating with a revised target price of Rs 32,000, based on 60x June 2028 estimated EPS.
HDFC Securities also expressed a constructive view on the operational outlook, anticipating sustained positive margin trajectory due to volume growth and operating leverage. They maintained an 'ADD' rating, increasing their target price to Rs 31,414 per share, citing a robust HVDC pipeline, new capital expenditure announcements, increasing export share, and opportunities in the Indian data center market.
Conversely, Nuvama Institutional Equities acknowledged another strong quarter but flagged stretched valuations. They maintained a 'HOLD' rating, adjusting their target price to Rs 34,200. Nuvama noted that current valuations at 37x FY30 bull case EPS and 98x/64x FY27E/28E EPS already price in significant growth and margin expansion.
Capacity Expansion Underway
In anticipation of future demand, Hitachi Energy India is undertaking significant capacity expansion. The company plans an additional Rs 2,000 crore capital expenditure, aiming to add 30,000-40,000 MVA by Q4 CY28. This investment is incremental to an existing Rs 2,000 crore capex program already being implemented in phases, underscoring the company's commitment to capitalizing on strong market opportunities in transmission, renewables, and data centers.