Hitachi Energy India shares have demonstrated exceptional growth, skyrocketing by nearly 40 times, or 3,850%, over the last six years. The stock, which traded around three digits, has now reached five-digit levels, settling at Rs 35,620 on Thursday. This impressive rally has prompted several leading brokerage firms to issue fresh price targets, with some anticipating the stock to hit the Rs 40,000 mark.
Strong Q1 FY27 Performance Fuels Optimism
The company recently announced robust financial results for the quarter ended June 30, 2026 (Q1 FY27). Hitachi Energy India reported a significant 123.5% year-on-year surge in net profit, reaching Rs 294.15 crore. Revenue for the same period also saw substantial growth, climbing 68.6% to Rs 2,493.69 crore. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at Rs 395.02 crore, with margins at a healthy 16%.
Order inflows were equally impressive, increasing by 26.1% year-on-year to Rs 5,096.5 crore. This included a landmark first order for a Battery Energy Storage System (BESS) project, valued at 165 MW / 330 MWh. As a result, the company's order backlog has reached an all-time high of Rs 32,222.1 crore, providing strong revenue visibility for the future.
Brokerages Revise Price Targets Upward
Following the stellar quarterly performance and a burgeoning order book, analysts have recalibrated their outlook for Hitachi Energy India shares:
- HDFC Securities maintained an 'ADD' rating, increasing its target price to Rs 34,667. The firm cited robust HVDC pipeline, new capital expenditure announcements, increasing export share, and emerging opportunities in Indian data centers and BESS products as key growth drivers.
- IDBI Capital upgraded the stock to a 'Buy' rating, setting a revised target of Rs 37,909. They highlighted the strong momentum in electrification both domestically and globally, along with significant contributions from data centers in recent order intakes.
- ICICI Securities also upgraded its recommendation to 'Buy', setting a target price of Rs 40,000. The brokerage anticipates annual transmission bidding of Rs 70,000–90,000 crore for the next three years, further bolstered by new transmission approvals.
- HSBC initiated coverage with a 'Buy' rating and a target price of Rs 40,030. HSBC projects substantial growth across utilities, industries, and transport segments, expecting the order backlog to expand 1.6 times by FY29F, driving significant sales, EBITDA, and PAT CAGRs.
While the outlook remains largely positive, HSBC also noted potential risks including competition from Chinese companies, delays in finalization of HVDC orders, and counterparty risk. However, strong HVDC order wins and EBITDA margin expansion are identified as key catalysts for continued growth.