Hitachi Energy India Gains 13% on Strong Q2 Results: Can the Momentum Continue?

Hitachi Energy India Ltd (NSE: POWERINDIA), the country’s leading power-infrastructure company, has quietly become a backbone of India’s energy transition — and now, of the AI revolution itself. The company, which builds transformers, grid systems, and high-voltage switchgear essential for electricity transmission, sits at the intersection of two megatrends: the electrification of everything and the exponential power demand of AI-driven data centres.

From ABB Legacy to AI-Era Infrastructure Giant

Listed on March 30, 2020 as ABB Power Products & Systems India before rebranding to Hitachi Energy India in November 2022, the company has seen a remarkable run. From a listing-day low of about ₹ 680 to a recent close near ₹ 19,000, the stock has delivered an astounding 28× gain in just over five years — translating into a market cap of roughly ₹ 85,000 crore.

This isn’t just a story of re-rating. It’s about a structural shift in India’s energy ecosystem and Hitachi Energy’s pivotal role in enabling it.

Q2 FY26: A Stellar Quarter

The company’s latest results underscore that momentum.

• Profit after tax: ₹ 264 crore — up 4× YoY (vs ₹ 52 crore in Q2 FY25)

• Order inflows: ₹ 2,217 crore — up 13.6 % YoY

• Revenue: ₹ 1,429 crore — up 10.5 % YoY

• Operating margin: Expanded to 10.8 % vs 3.7 % a year ago

• Order backlog: ₹ 29,413 crore as of Sept 30, 2025

This was one of the company’s strongest quarters ever, reflecting both execution discipline and rising demand for grid, rail, and renewable-energy systems across India.

The Bigger Story: AI Is the New Power Consumer

Globally, Hitachi Energy has committed US $9 billion in fresh investments to expand production of transformers, switchgear, and grid-technology systems — all crucial for powering AI-driven data centres. The same trend is playing out in India, where hyperscale cloud operators and industrial clusters are racing to secure power reliability.

“Electrification and AI are reinventing each other,” the company’s global leadership has said — and Hitachi Energy India is positioned as the on-ground enabler of that equation.

With India’s data-centre capacity expected to triple by 2030, and the country’s renewable-energy capacity now above 50% of total generation, grid reliability and energy integration are the next frontiers — both core to Hitachi’s business.

Why a Stock Split Now Could Be the Next Catalyst For Hitachi Energy India?

At nearly ₹ 19,000 per share, Hitachi Energy India’s stock has become a high-denomination outlier on the NSE. While valuation, not price, defines value — the psychological and liquidity impact of high nominal share prices in India is real.

1) Liquidity & narrower spreads.

Lower per-share price typically reduces tick-size frictions, tightens bid–ask spreads, and lifts average daily traded value (ADTV)—useful for both active and passive execution. (Index weights are market-cap based, so a split doesn’t change weight, but better tradability helps indexers and quant/passive funds track and rebalance more efficiently.)

2) Broader ownership & passive flow readiness.

A lower unit price makes the stock more accessible to retail and smaller institutions, and can help meet eligibility screens that some passive/quant mandates apply around liquidity/turnover (separate from market cap). Improved turnover can also support F&O eligibility tests (where applicable), further deepening the investor base.

3) Cheaper future capital.

If a split raises liquidity and reduces volatility/spreads, the company’s equity cost of capital can compress at the margin—useful if management contemplates follow-on issuance, ESOP exercises, or using stock as acquisition currency.

4) Signaling without fundamentals dilution.

A split doesn’t change intrinsic value, but in India it often signals management’s intent to broaden participation—and, when paired with strong execution (order wins, margin discipline), the market tends to reward the name.

Such a move wouldn’t alter fundamentals but would signal intent to broaden ownership — a classic hallmark of companies transitioning from niche to national champions.

Looking Ahead: Growth Triggers to Watch

Hitachi Energy India’s next leg of growth could come from:

1. Large domestic orders in grid integration, renewable connectivity, and data-centre infrastructure

2. Export expansion from India into fast-electrifying markets

3. Manufacturing scale-up to meet domestic and global demand

4. Government push for grid digitalisation and high-voltage network upgrades

5. Improved market mechanics, including a potential share split and increased liquidity

The Takeaway

Hitachi Energy India’s Q2 FY26 performance wasn’t just about numbers — it was a signal. A four-fold jump in profit, 13% order growth, and a record order backlog together reflect both the company’s execution edge and the structural demand ahead.

The infrastructure powering AI isn’t just silicon and servers — it’s the grid that keeps them alive. And in India, Hitachi Energy stands at the centre of that current.

Disclaimer: AltG, including its principals, directly or indirectly, may hold shares in the companies mentioned. This material titled "Hitachi Energy India Gains 13% on Strong Q2 Results: Can the Momentum Continue?", any views, comments or communication (above or in the past)  is for informational purposes only and should not be construed as investment advice by Alternative Growth (hereafter referred to as “AltG”) in any form whatsoever. AltG does not make an offer to sell or solicit to buy any securities.