Valuations factor in revenue growth, margin expectations for Hitachi Energy

Hitachi Energy India posted strong Q2FY26 margins and revenue on a solid order book and export demand, but HVDC's long gestation and rich valuations may cap gains despite an upbeat outlook

Hitachi Energy India (HEIL) reported strong second quarter (Q2FY26) results with operating profit margins (OPM) well ahead of its guidance and revenues registering healthy growth. Market leadership, a good balance sheet, a big order book and high return ratios are all positives for the company.

 

However, OPMs are expected to moderate from current levels and there could be long gestation periods on high voltage direct current or HVDC projects.

 

HEIL reported an OPM at 16.3 per cent (rising 920 basis points Y-o-Y), well ahead of guidance, supported by 18 per cent Y-o-Y revenue growth. An order backlog of ₹29,400 crore