Hitachi Energy's ₹2,000 cr Vadodara bet is a bet on India's data-center boom
The company's record order backlog of ₹29,555 crore underpins the expansion. Management sees data-center demand growing six to nine times.
— 3 earlier stories on Hitachi Energy India Ltd. →What's new
- Hitachi Energy will spend ₹2,000 cr to build a new transformer plant in Vadodara, doubling capacity.
- Full-year EBITDA margin hit 15.4%, up from 9.3% a year ago, despite geopolitical supply-chain pressure.
- CEO N Venu pegged the company's share of the addressable data-center market at 15%, with demand set to grow 6-9x.
Why this matters
The capex announcement is the clearest sign yet that Hitachi Energy is scaling for a multi-year grid cycle. The margin jump from 9.3% to 15.4% shows the backlog is converting into real profitability, not just paper orders. The Vadodara plant is a direct bet that transformer shortages, not demand, are the binding constraint on India's energy transition.
What we're watching
- Execution timeline for the Vadodara plant and its impact on capacity by FY28.
- How the 15% data-center market share holds as the market itself grows 6-9x.
- Whether Middle East supply-chain issues linger into H1 FY27.
The full read
Hitachi Energy is spending ₹2,000 crore to build a new transformer plant in Vadodara. The move doubles its capacity and is a direct response to the ₹29,555 crore order backlog it carried into FY27, the highest in the company's history. The backlog is turning into profit. Full-year EBITDA margin jumped to 15.4% from 9.3% a year ago, even with Middle East-related supply-chain snags. CEO N Venu told analysts the company holds a 15% share of India's data-center power-equipment market and expects that market to grow six to nine times. The Vadodara plant is the clearest signal yet that management sees the bottleneck as supply, not demand. The company is building ahead of a cycle it believes will run for years.
Questions answered
- What is the purpose of the ₹2,000 crore Vadodara investment?
- It is a greenfield project to build a new manufacturing facility that will double Hitachi Energy's transformer capacity. The investment is aimed at meeting surging domestic demand, particularly from grid modernization and data-center buildouts.
- How did the company's profitability change in FY26?
- Full-year EBITDA margin expanded to 15.4% from 9.3% in FY25. The improvement came despite temporary supply-chain disruptions linked to Middle East geopolitics, indicating strong operational execution on the large order backlog.
- What is Hitachi Energy's position in the data-center market?
- CEO N Venu stated the company holds a 15% share of the addressable data-center power-equipment market. He projected the overall market will grow six to nine times in the coming years, driven by AI and cloud demand.
- What does the record order backlog signal?
- The ₹29,555 crore backlog is the highest in the company's history, providing multi-year revenue visibility. It underpins the business case for the Vadodara expansion and validates the strategic pivot toward grid-scale and data-center solutions.
Hitachi Energy India Ltd.
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All notes on POWERINDIA →- 1 Jun 2026 · 6:33 PM IST Hitachi Energy's ₹2,000 cr Vadodara bet is a bet on India's data-center boom
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