Hitachi Energy India Ltd Q4 FY26 Results Analysis: PAT Surges 80%, EBITDA Margin Expands 390 bps

Hitachi Energy India Ltd's Q4 FY26 numbers came in strong, with revenue of Rs. 2,754.05 Cr (+46.20% YoY) and PAT growth of +79.70% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 46% YoY with PAT up 80%, driven by strong execution on a high-margin order backlog. EBITDA margin expanded 390 bps to 16.4%, sustaining double-digit profitability. The company remains debt-free with Rs.4,689 Cr cash and announced Rs.2,000 Cr greenfield capacity expansion, positioning for multi-year growth.

Key Investment Insights

Key Positives

• Revenue grew 46.2% YoY to Rs.2,754 Cr, supported by strong order execution across projects, products, and services.
• PAT increased 79.7% YoY to Rs.330.46 Cr, with operational EBITDA margin expanding 390 bps to 16.4%.
• Order backlog stood at Rs.29,555 Cr, providing 3.6x annual revenue visibility.
• Balance sheet remains debt-free with cash and equivalents of Rs.4,689 Cr.
• Board approved Rs.2,000 Cr greenfield capacity expansion for large power transformers.
• Final dividend recommended at Rs.8 per share, up from Rs.3 in FY25.

Risk Factors

• CAPEX of Rs.510 Cr fell short of the Rs.700 Cr target (73% achievement).
• Material costs grew faster than revenue (54.3% vs 46.2% YoY), indicating input cost pressure.
• Unrealized forex loss of Rs.31.51 Cr in Q4 due to derivative fair valuation.
• One-time exceptional charge of Rs.54.24 Cr for New Labour Codes impacted reported PAT.