Hitachi Energy India Limited

Hitachi Energy reported robust financial results for Q4 FY25 and the full fiscal year. Q4 FY25 saw a 56% year-on-year growth in order inflow, reaching ₹2,190.9 crores, and a 13.1% increase in revenue to ₹1,921.9 crores. Profit Before Tax (PBT) surged 62.1% to ₹246.7 crores, with Profit After Tax (PAT) growing 61.8% to ₹183.9 crores. The company achieved a double-digit operational EBITDA margin of 12.3% in Q4. For the full year FY25, orders reached a record ₹18,173.8 crores, up 228%, and revenue grew 23% to ₹6,475.4 crores, with PBT and PAT significantly up by 133% and EBITDA margin improving by 250 basis points.

The company achieved its highest ever order backlog of ₹19,245.9 crores as of March 31, 2025, providing strong revenue visibility for future quarters. Key orders in Q4 included the first Made in India variable shunt reactor, a large STATCOM order, and substations for wind farms. While HVDC projects have longer execution cycles of 48-54 months, other orders typically convert to revenue within 3-18 months. Management emphasized that the pipeline for orders, excluding HVDC, remains very robust.

Transmission and renewable segments led the order growth in Q4 FY25, with 91% and 386% year-on-year increases respectively. The company is well-positioned to capitalize on India's energy transition, with significant investments expected in interstate transmission systems (₹1 lakh crores over two years). Despite a Q4 decline in data center and industry segments, management expects strong demand in coming quarters due to aggressive infrastructure push. Hitachi Energy also highlighted its strong positioning in the data center market, powering one out of three data centers today.

Hitachi Energy successfully raised ₹2,520.82 crores through its first Qualified Institutional Placement (QIP). The company plans to invest approximately ₹2,000 crores over the next 4-5 years in capacity expansion. Two-thirds of the QIP proceeds are earmarked for expansion capex, 25% for corporate usage, and 10% for working capital. These investments will span all four business units, including HVDC-related factories, STATCOM, and advanced transformers, aiming to increase annual capex 4x-5x from the current ₹130 crores. The company remains debt-free since the last quarter.

The company demonstrated its commitment to sustainability by reducing energy consumption by 6% per crore revenue and achieving a 17% reduction in overall waste disposal. It also added 1,240-kilowatt rooftop solar energy, maintaining 100% fossil-free electricity across all units. Safety incidents declined by 18% year-on-year. Operationally, Hitachi Energy is focused on continuous improvement, leveraging its largest-ever backlog for revenue and margin accretion, and building capabilities to meet growing energy requirements both domestically and globally.

Effective April 1, 2025, Hitachi Energy launched its fifth business unit dedicated to services, aiming to provide end-to-end asset life cycle solutions. This unit is expected to tap into a significant addressable market, with potential orders of ₹2,000 crores per year from an installed base of ₹60,000 crores in India. The company's export strategy, which contributed 37% to total orders (excluding HVDC) and grew 77% year-on-year, involves leveraging global feeder factories and targeting specific markets, without compromising focus on the domestic market.