1. At a Glance
₹96,584 crore market cap. ₹21,669 share price. Stock P/E at a spicy 110×. ROCE 19.4%. ROE 13.8%. Debt? Practically pocket change at ₹84.5 crore. Quarterly sales ₹2,082 crore, up 28.5% YoY, and quarterly PAT ₹302 crore, exploding ~120% YoY. OPM has climbed to 17% in the latest quarter. Sounds dreamy? Hold that thought.
This is not your neighbourhood transformer wala. This is Hitachi Energy India Ltd, the heavy-duty backbone supplier to India’s grid dreams — HVDC highways, ultra-high voltage substations, STATCOMs, transformers, grid software — the stuff that makes politicians cut ribbons and engineers lose sleep.
But the market has already crowned it royalty. Price-to-book at 21×. EV/EBITDA at 71×. CMP/FCF at 190×. The question is simple and brutal: is this a generational power infra franchise… or is the valuation already living in FY2035?
Before you shout “energy transition!”, let’s actually read the numbers like adults.
2. Introduction
Hitachi Energy India wasn’t born yesterday. It’s ABB Power Grids with a Japanese surname and better corporate discipline. Created in 2019, fully owned by Hitachi since December 2022, and now running on the global Hitachi brand muscle — 270,000 employees worldwide, 573 subsidiaries, and balance sheets that don’t panic during downturns.
India is in the middle of an electrical mid-life crisis. Renewable capacity exploding, transmission lines gasping, grids behaving like Windows 98 under load. Someone has to fix this mess. Enter Hitachi Energy.
But markets are emotional creatures. Over the last three years, the stock is up 86%. One year? 56%. And yet, in the last six months, returns are negative. That tells you everything: phenomenal business, terrifying expectations.
So let’s dissect this calmly. No bhakti. No hate. Just numbers, sarcasm, and common sense.
3. Business Model – WTF Do They Even Do?
In simple terms: they sell the nervous system of electricity
.
Grid Automation
Think brains. Substation automation, grid edge solutions, communication networks, enterprise software. If electricity was a human, this is the nervous system telling power where to go and when to stop tripping.
Grid Integration
The muscle. HVDC, FACTS, massive transmission projects. Over 4,000 projects delivered. This is where India’s renewable dreams meet physics and swear words.
High Voltage Products
Up to 1,200 kV AC and 1,100 kV DC. That’s not equipment, that’s controlled lightning.
Transformers
Power transformers, traction transformers, digital sensors, services. The boring looking boxes that actually decide whether your city has power or memes about power cuts.
Revenue mix tells the story:
- Products: 79%
- Execution contracts: ~16%
- Services: 2%
- Others: 3%
Services are small today, but margins whisper sweet nothings about the future. Question: will services scale fast enough to justify this valuation?
4. Financials Overview
Latest Quarterly Comparison (Figures in ₹ Crore)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 2,082 | 1,620 | 1,833 | 28.5% | 13.6% |
| EBITDA | 345 | 167 | 299 | 106.6% | 15.4% |
| PAT | 261 | 137 | 264 | 90.5% | -1.1% |
| EPS (₹) | 58.65 | 32.41 | 59.31 | 81% | -1.1% |
Margins are expanding like a gym bro on whey. OPM at 17%, compared to single digits two years ago. This is not financial engineering — this is operating leverage + better project execution.
Trailing EPS at ₹189 gives you the scary 110× P/E.
Are margins sustainable?
