Hitachi Energy India

“As part of our commitment to strengthen execution capabilities and building a more resilient supply chain, we began construction of Hitachi Energy India's 20th manufacturing facility in Karjan, Vadodara in June 2026.”

“With a targeted commissioning date of December 2028, the facility will play a key role in expanding our manufacturing footprint, strengthening local capabilities, and supporting the growing demand for sustainable energy infrastructure in India and global markets.”

“Our capex is to increase our capacity and of course, localizing some of those components. I do not see any issue in competing with any of those players.”

“It is the volume and other things will give us leverage. the whole idea is to localize more components and to create an end-to-end manufacturing scenario over a period in India. That is our intention of doing this kind of capex.”

“Against this market backdrop, we secured orders worth INR 5,096.5 crs during Q1 FY27.”

“Q1 FY26 included a large HVDC order, therefore, to provide a more meaningful comparison of our underlying performance, we have also presented order growth excluding HVDC for the current quarter. On a comparable basis, order intake in Q1 FY27 increased by 26.1% YoY and 39.7% QoQ”

“As a result, we closed the quarter with an order backlog of INR 32,222.1 crs, representing strong double-digit growth compared with Q1 FY26 and providing good revenue visibility for the coming quarters.”

“In addition, we secured multiple data center orders from hyperscalers during the quarter. A notable project among these is a 40 × 2500 kVA data center project in Hyderabad, awarded by a leading Indian multinational conglomerate.”

“Most of them are base orders. We do not have any major large orders this quarter. We have seen strong order from the data center this quarter.”

“And right now, our focus is to supply for the domestic market. We have just started. We first need to validate the technology we have deployed and then we will scale it up slowly. However, order pipeline is quite robust.”

“If you have been following us, we have been telling that the first year, the revenue execution will be slightly on the lower side, and then it will pick up from the second and third year. That is what we have been telling. Hence, the full revenue contribution from the HVDC projects has not yet materialized.”

“The first project, Khavda project is picking up. Bhadla project is starting.”

“It is a temporary thing in the transmission. I do not see that as any major issue. Railway projects are progressing slower than originally anticipated. Based on the discussion with the rail and metro authorities -- we expect it should pick from the second half of the year.”

“In one approach, we also supply our PCS solutions, which we are not localized yet.”

“We are particularly encouraged by the strength of the current order pipeline across both domestic and export markets. During the quarter, transmission projects, renewable energy evacuation initiatives, and the growing data center segment were key drivers for order inflow.”

“India's electricity demand is expected to grow strongly over the coming decade. In parallel, the power grid is becoming increasingly complex, with higher load densities, rising reliability requirements, and emerging demand drivers such as AI-enabled workloads.”

“Our addressable market continues to present significant opportunities, and we see strong momentum in renewable energy, substantial transmission investments to integrate non-fossil fuel capacity, a visible industrial capex cycle, increasing investments in data centers, and accelerating adoption of electric vehicles. In addition, improving DISCOM fundamentals are supporting higher investments in distribution infrastructure.”

“Most of the data center customers are securing the long lead items like dry transformer, the GIS, etcetera. Our portfolio will be the entire grid integration which includes GIS, the transformers, the dry transformer, the power transformers including the services.”

“It has been mandated that every renewable energy needs to have energy storage. So, all those things are driving the huge amount of growth opportunities in domestic market.”

“From a profitability perspective, disciplined execution and operating leverage resulted in a 120.2% YoY increase in Profit Before Tax (PBT), while operational EBITDA grew 135.0% YoY to INR 399.9 crs.”

“Despite the evolving geopolitical environment, we have been able to maintain material costs as a percentage of revenue within the historical range during Q1 FY27.”

“Depreciation has increased compared to the previous quarter reflecting ongoing capital expenditure towards capacity expansion. Finance cost remained broadly stable.”

“As a result, our profit before tax margin stood at 15.6%, while profit after tax margin was 11.8%.”

“The margin profile is difficult to mention at this stage as this technology needs to mature. We need to do a lot of localization in this segment. Over time, these margins will gradually reach the desired levels.”

“The second project marks a major milestone for Hitachi Energy India. It is a 165 MW / 330 MWh Battery Energy Storage System (BESS) project in Andhra Pradesh, reflecting strong validation of our capabilities in grid integration, power quality, and advanced energy solutions.”

“In our portfolio, we have just launched “Grid to rack solution for data centres.” We have shown the same in our investors meet in Mumbai.”

“It is important to note that this EBITDA performance includes an unrealized foreign exchange loss of INR 36.37 crs recorded during the quarter.”

“Coming back to the specific question i.e., transformer and GIS. They were already competing in some form or other form, may not be in same segment, hence, I do not see any material impact for us.”

“More competition is welcome to meet the demand and supply challenges or perceived demand and supply challenges, if any. As long as there is a level playing field, we do not see any issue in competing and ensuring that our margin ambition is met in that.”

“The business is executing well, market demand remains robust, and our pipeline is stronger than ever. While we remain mindful of macroeconomic uncertainties and project execution challenges that can arise in a dynamic environment, we are confident in our ability to capitalize on the opportunities ahead and continue creating long-term value for our shareholders.”

“We delivered strong revenue growth of 68.6% YoY, driven by robust execution of our order backlog.”

“This slide highlights that revenue from operations was INR 2,493.7 crs, while other income was approximately INR 57 crs, primarily comprising interest income on deposits.”

“Export contribution on the revenues is around 25%. So that is the run rate we are seeing now.”

“On the exports we are trending 25% - 26%.”

“During the year, we achieved a 16% reduction in freshwater usage compared with the 2019 baseline through recycling initiatives and the deployment of water-efficient fixtures.”