This article first appeared on GuruFocus .
Release Date: February 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Hitachi Energy India Ltd ( BOM:543187 ) reported a strong order intake growth of 73% year-on-year, excluding the HVDC order, indicating robust demand.
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The company achieved a significant improvement in safety metrics, with the total recordable injury frequency rate improving to 0.09, surpassing their target.
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Sustainability initiatives are on track, with operations running on 100% renewable electricity and a 70% reduction in operational CO2 emissions ahead of targets.
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The company has a strong order backlog of 29,872 crores, providing a solid foundation for future revenue growth.
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Exports have increased to 29-30% of total inflows, surpassing the target of 25%, showcasing strong international demand for their products.
Negative Points
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Gross margins saw a slight decline on a quarter-on-quarter basis, attributed to product mix variations.
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There is a slow start in capital expenditure utilization, with only 155 crores used against a planned 700 crores for FY26.
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The company faces potential challenges from inflationary pressures on commodity prices, although most contracts have price escalation clauses.
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There is a noted decline in order intake from the rail and metro segments, attributed to project timing and previous strong performance.
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Concerns were raised about potential delays in HVDC projects, although the company assured no penalties are expected.
Q & A Highlights
Q: How much of the execution pertaining to the Mumbai HVDC project is remaining, and what was its contribution to the Q3 turnover? A: We don't disclose project-specific revenues. For the Mumbai HVDC project, we have completed pre-commissioning tests and expect to commission it in 2 to 3 weeks. (Respondent: CEO)
Q: Why was there a drop in gross margin on a quarter-on-quarter basis? A: The fluctuation in gross margin is due to the product mix. Depending on the execution of products, there can be slight changes. (Respondent: CFO)
Q: How are you managing inflationary pressures from commodity prices? A: Most of our backlog includes price escalation formulas, so the impact is minimal. Over 70% of our portfolio has price escalation clauses. (Respondent: CEO)
Q: What is the outlook for the domestic market, especially for transformers? A: The market remains strong, with significant growth in transmission and electrification. We expect a multi-year growth story in energy transition. (Respondent: CEO)
Q: Are you increasing HVDC localization in India? A: We are continuously working to increase value addition in HVDC projects. We are executing projects like the Marinus Link in Australia, which helps localize supply chains. (Respondent: CEO)
Q: Can you provide an update on the budgetary cap for FY26 and plans for FY27 and FY28? A: We plan to utilize over 700 crores this year and an additional 700 crores next year, as outlined in our QIP document. (Respondent: CEO)
Q: Is there a slowdown expected in execution due to the completion of the Adani HVDC order? A: No slowdown is expected. We are working on existing projects, and revenue recognition will continue based on the percentage of completion. (Respondent: CEO)
Q: How is the export strategy evolving, and what is the contribution from data centers? A: Exports are targeted to be 25-30% of overall inflows. Data centers currently contribute high single digits to our order inflow, and we expect this to grow. (Respondent: CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
