Hitachi Energy's ₹29,555 cr backlog doubles transformer capacity
A record order book gives multi-year revenue visibility. The company is spending ₹2,000 cr on a greenfield plant to meet demand it expects to last.
— 3 earlier stories on Hitachi Energy India Ltd. →What's new
- Order backlog reached a record ₹29,555 crore, providing multi-quarter revenue visibility.
- FY26 EBITDA margin expanded to 15.4%, a 610 bps improvement from 9.3% the prior year.
- Board approved a ₹2,000 crore greenfield plant to double power-transformer capacity by Q4 CY28.
Why this matters
The ₹29,555 crore backlog is a concrete measure of demand visibility. The margin story is the bigger shift. A 610 bps EBITDA swing in a capital-goods business signals either price power or a much leaner cost structure. The ₹2,000 crore bet on a new plant says management expects that demand to be durable.
What we're watching
- Execution on the Karjan plant—commissioning by Q4 CY28 is an ambitious target for a greenfield build.
- Conversion of the 3-4 pipeline HVDC projects into firm orders over the next two years.
- Sustaining the 15.4% EBITDA margin as capacity additions come online.
The full read
Hitachi Energy's earnings call was less about the past quarter and more about the decade ahead. A record order backlog of ₹29,555 crore hands the company multi-year revenue visibility. The financial payoff is already showing: FY26 EBITDA margin jumped to 15.4%, a 610 bps expansion from 9.3% the prior year, with gross margins lifting ~200 bps to 40%. That kind of operating gain on a growing book is what turns a cycle into a franchise. Management is now spending to cement that position. A ₹2,000 crore greenfield plant in Karjan will double transformer capacity by Q4 CY28, a bet that the grid and data center build-out will outlast the current order book. On data centers specifically, the company sees a 6-9x growth opportunity in India and already takes ~15% of addressable capex. The pipeline of 3-4 major HVDC projects over two years adds another layer. The margin story is the headline here. Sustaining 15.4% as new capacity comes online will be the first real test.
Questions answered
- How large is the order backlog, and what does it imply for revenue?
- The backlog is ₹29,555 crore, a record high. The company stated this provides multi-quarter revenue visibility, meaning the current book alone can sustain growth for several years.
- What drove the margin expansion to 15.4%?
- EBITDA margin improved by 610 bps from 9.3% in FY25, driven by operating gains on higher volumes and a ~200 bps expansion in gross margins to 40%. The scale of the backlog is now generating efficiencies.
- Why invest ₹2,000 cr in a new transformer plant?
- The Karjan facility will double the company's power transformer production capacity. Management is making this incremental capital investment to meet sustained demand, particularly from the grid and data center sectors.
- What is the data center opportunity the company is targeting?
- Hitachi Energy estimates a 6-9x growth potential in India's data center market, where it currently captures about 15% of addressable capital expenditure. This is a key non-grid demand driver for its equipment.
- Is the company still constrained on HVDC project wins?
- No. Management confirmed it has reversed prior capacity constraints and now faces no limitations on securing future high-voltage direct current (HVDC) projects. A pipeline of 3-4 such projects is expected over the next two years.
Hitachi Energy India Ltd.
Latest quarter · Mar 2026
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All notes on POWERINDIA →- 26 May 2026 · 2:03 PM IST Hitachi Energy's ₹29,555 cr backlog doubles transformer capacity
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