Powering ahead: Hitachi Energy, Siemens Energy post strong Q1 on robust orders

The Q1 FY27 earnings season turned out to be a blockbuster for companies powering India’s electricity and grid infrastructure story.

Heavy electrical equipment makers and energy technology firms such as Hitachi Energy, Siemens and Siemens Energy reported strong April–June results, backed by robust order inflows and record order backlogs as rising power demand, data centre expansion, renewable energy projects and grid modernisation continued to drive capital spending.

Hitachi Energy reported its highest-ever order backlog of ₹32,222.1 crore at the end of the June quarter, while Siemens Energy’s backlog rose 16.4% year-on-year to ₹19,311 crore. Siemens also posted a 9.6% increase in its order backlog to ₹46,670 crore, highlighting sustained demand across the power equipment and electrification space.

The momentum was equally strong on fresh order wins. Siemens said new orders climbed 16.5% year-on-year to ₹6,328 crore during the quarter, while Hitachi Energy’s total orders booked surged 26.1% to ₹5,096.5 crore.

According to Hitachi Energy, the order pipeline was led by high-voltage direct current (HVDC) systems, grid connection solutions, power quality equipment and transformers. Data centres emerged as a key demand driver, alongside industrial and renewable energy projects.

The company said India is witnessing a structural surge in electrification, supported by rapid growth in transportation, manufacturing, digital infrastructure and clean energy. With domestic electricity demand continuing to rise, companies supplying grid and transmission infrastructure remain well positioned for long-term growth.

Hitachi Energy Q1 earnings

Hitachi Energy’s net profit in the April-June period surged 123% to ₹294 crore from ₹132 crore in the same period last year, thanks to a surge in electrification in the country.

Its revenue from operations rose 69% to ₹2,494 crore in the first quarter of the current financial year from ₹1,479 crore a year earlier.

The Bengaluru-based company reported strong operational performance as its earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 135% to ₹364 crore and its EBITDA margin improved by 4.1 percentage points to 14.58% at the end of the June quarter.

Siemens Q1 earnings

Siemens, last week, reported a net profit (attributable to the owners of the company) of ₹2,143 crore for the first quarter of the current financial year, marking an increase of 407% or five times from ₹423 crore in the same period last year.

The boost in profit came on account of a one-time gain of ₹2,099 crore as it completed the sale of its LVM business.

After adjusting for the one-time gain, the net profit in the June quarter stood at ₹343 crore. The profitability in Q1 was impacted due to volatility in commodity prices, foreign exchange, and an increase in material costs, Siemens said.

Its revenue from operations in the April-June period came in at ₹4,714 crore, up 15% from ₹4,108 crore in the same period last year.

Siemens Energy Q1

Siemens Energy’s net profit in the April-June period jumped 68% to ₹441 crore from ₹263 crore in the same period last year.

Its revenue from operations advanced 39% to ₹2,486 crore from ₹1,785 crore in the year-ago period.

“Revenue witnessed solid growth primarily supported by robust order backlog and execution. Profit from operations (%) also improved by 430 bps year-on-year to 21.9%, primarily driven by better operating leverage, higher export contributions, and disciplined order execution,” Siemens Energy said in a press release.

The company reported strong operational performance as its earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 72% to ₹585 crore and its EBITDA margin improved by 4.4 percentage points to 23.55%.

What global investment firms said on firms' Q1 earnings

Jefferies, in a note, said that Hitachi Energy and Siemens Energy saw margin expansion of 410-450 basis points (bps) year-on-year (YoY), driven by operating leverage.

Citi said that for Hitachi Energy, an order book-to-revenue of 3.5 times as of Q1FY27 provides strong multi-year execution visibility.

The company is well-placed to capture the next wave of grid investment; its foray into data centres and BESS broadens the total addressable market to 65%. However, commodity cost pass-throughs underpin margin resilience, Citi added.

Nuvama said that Siemens Energy’s EBITDA margin in June quarter expanded 450 bps YoY to 23.6%, well above 19.9% consensus. It raised FY26 and FY27 earnings per share (EPS) estimates by 12% and 3%, respectively, on stronger execution.