Home / Business and Economy / Margin Squeeze Hits Hitachi Energy Stock
Margin Squeeze Hits Hitachi Energy Stock
26 May
Summary
- Hitachi Energy India's Q4 revenue grew 46% YoY to ₹2,750 crore.
- Despite revenue growth, gross margins contracted 30 basis points.
- Company approved a ₹2,000 crore capex for a new transformer facility.
Hitachi Energy India's share price saw a dip of 4.5% on May 26, 2026, following its Q4 FY26 financial results. The company reported a robust 46% year-on-year revenue increase, reaching ₹2,750 crore, which surpassed estimates. Profit after tax also jumped 84% year-on-year to ₹360 crore.
However, the results were dampened by a 30 basis point contraction in gross margin to 36.9% and a shrinkage in EBITDA margin to 16.3%. This was attributed to higher-than-expected cost of goods sold. Despite this, the company's order inflow grew 11% year-on-year.
The company's Board has approved a fresh capital expenditure of ₹2,000 crore for a greenfield large power transformers facility in Karjan, Vadodara, Gujarat. This new outlay, in addition to a prior ₹2,000 crore investment, brings the cumulative capex to ₹4,000 crore, signalling a focus on future expansion.
Brokerages have placed their ratings 'under review' following the earnings call. While results were largely ahead of expectations, muted order book growth was noted as a concern. The outstanding order book stands at ₹29,600 crore, marking a 54% annual increase but remaining flat sequentially.
