Hitachi Energy Pegged at Rs 32,000 by Motilal Oswal
Hitachi Energy Posts Strong Q4FY26 Results, Beats Expectations
Hitachi Energy's fourth-quarter fiscal year 2026 (4QFY26) results surpassed expectations, driven by a significant beat on both revenue and profitability. The company's year-over-year (YoY) growth in revenue, earnings before interest, taxes, depreciation, and amortization (EBITDA), and profit after tax (PAT) stood at 28%, 111%, and 203%, respectively.
Hitachi Energy's order inflows for the full year (FY26) totaled INR185 billion, a 2% increase from the previous year. Notably, domestic order inflows, excluding exports, remained largely flat in FY26, with exports accounting for nearly 25% of total inflows. However, the company is expected to see a significant increase in base ordering from domestic markets, driven by strong opportunities in transmission, renewable energy, data centers, and exports.
The company is also expanding its capacities by an additional INR20 billion, potentially adding 30,000 to 40,000 megavolt-amperes (MVA) by fourth-quarter calendar year 2028 (4QCY28). This capital expenditure (capex) is in addition to the existing INR20 billion capex, which is being implemented in phases.
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| Comparison of FY26 Results | Hitachi Energy |
|---|---|
| Revenue Growth (YoY) | 28% |
| EBITDA Growth (YoY) | 111% |
| PAT Growth (YoY) | 203% |
| Order Inflows (INR billion) | 185 |
| Domestic Order Inflows (INR billion) | 138.75 (approx.) |
| Export Order Inflows (INR billion) | 46.25 (approx.) |
Based on the FY26 results and changes in below-EBITDA line items, Motilal Oswal's research team has raised their earnings per share (EPS) estimates for FY27 and FY28 by 8% and 6%, respectively. The company's stock is currently trading at a price-to-earnings (P/E) ratio of 110x, 75x, and 54x on FY27, FY28, and FY29 EPS, respectively.
The research team has revised their target price (TP) for Hitachi Energy to INR32,000, based on a price-to-earnings ratio of 60x for June 2028 EPS. The team maintains a neutral rating on the stock.
Investor Takeaway
Investors should consider revising their estimates for Hitachi Energy based on the company's strong FY26 results.
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