Hitachi Energy up 32% in 10 days, hits record high. Should you buy or hold?

The stock price of Hitachi Energy was up 3% at ₹22,055 in intra-day trade and surpassed its previous high of ₹21,784.80 touched on August 12, 2025.

Hitachi Energy India share price

 

Shares of Hitachi Energy India hit a record high of ₹22,054.65, gaining 3 per cent on the BSE in Tuesday’s intra-day trade in an otherwise subdued market. The stock price of the heavy electrical equipment maker surpassed its previous high of ₹21,784.80 touched on August 12, 2025.

 

In the past 10 trading days, the market price of Hitachi Energy India has zoomed 32 per cent on strong earnings and business outlook. It has more-than-doubled or rallied 152 per cent from its 52-week low of ₹8,738.05 hit on January 28, 2025.

Hitachi Energy posted strong Q2FY26 results

 

With effective execution of good margin orders, sustained operational excellence, a good product mix, and increased export momentum, Hitachi Energy reported a significant year-on-year (YoY) growth in profit before tax (PBT) and profit after tax (PAT) in September quarter due to a lower base in the corresponding previous quarter.

 

PBT (₹352.90 crore) and PAT (₹264.40 crore) recorded a four-fold YoY growth, i.e., 399.8 percent and 405.6 percent respectively. Reported earnings before interest, taxes, depreciation, and amortisation (Ebitda) more-than-doubled to ₹291.6 crore from ₹126.3 crore a year ago. The Ebitda margin improved to 15.2 per cent, up from 8.1 per cent in the same quarter last year.

 

The company’s revenue grew 23.2 percent year-on-year (YoY) to ₹1,915.2 crore in the September quarter. Continued focus on effective order execution and overall operational efficiency has helped the company sustain its growth momentum.  ALSO READ | Cera Sanitaryware share slips 3% on weak Q2 results; profit tanks 17% YoY

Strong order book position

 

The company’s order backlog stood at ₹29,412.6 crore for the quarter ending September 2025, providing revenue visibility for the coming quarters.

 

During Q2FY26, the company received orders worth ₹2,217.1 crore, up 13.6 percent YoY. This was led by large orders for gas-insulated switchgear (GIS) and air-insulated switchgear (AIS) stations and locomotive transformers. In terms of segment, industries and renewables were key contributors to the orderbook, followed by transmission and transport. The company received export orders from utilities in Europe, data centers in Southeast Asia, and renewables in the Middle East and North America.

Hitachi Energy Outlook

 

Despite global trade uncertainties and geopolitical tensions, India remains one of the fastest-growing economies. Strong domestic demand, steady investments, and a resilient external sector drive a positive outlook. Key factors such as a favorable monsoon, GST 2.0 reforms, easier access to credit, and rising capacity utilization have contributed to this momentum, Hitachi Energy said.

 

India continues to make significant strides in clean energy. In the first half of 2025 alone, the renewable energy sector attracted investments of nearly ₹1 trillion (BloombergNEF 2H 2025 Renewable Energy Investment Tracker Report), which underscores the country’s growing confidence and commitment to sustainability. In addition, the government’s focus is shifting from capacity expansion to capacity absorption - with grid integration, energy storage, hybridization, and market reforms, to meet national energy goals, the company said.  ALSO READ | Eternal below 100-DMA, Swiggy at 200-DMA; how to trade these 2 stocks?

Motilal Oswal Financial Services view on Hitachi Energy

 

Hitachi Energy’s Q2FY26 results beat the Motilal Oswal Financial Services (MOFSL) estimates on the back of a sharp recovery in EBITDA margins and higher other income. Order inflow was healthy for the quarter, and the bid pipeline also remains strong for the company. 

 

Over the last few quarters, the brokerage firm in the Q2 result update said that it noted that the company’s order book cycle is turning longer but margin improvement is now visible. The company’s capacity expansion too will help meet the upcoming demand across segments. Analysts estimate bake in 29 per cent revenue CAGR and 63 per cent PAT CAGR over FY25-28 and an implied target multiple of 60x on two-year forward earnings.

 

However, the brokerage firm reiterated it’s 'Sell' rating on the stock on account of pricey valuations. The stock is currently trading at 102.7x/78.4x/62.4x P/E on FY26E/27E/28E earnings.

 

“We reiterate our Sell rating with a revised target price of ₹18,000 (vs. ₹16,500 earlier) based on 60x two-year forward earnings,” MOFSL said.