Hitachi Energy India shares surge nearly 14%, post best day in nearly 10 months, here is why

Shares of Hitachi Energy India, the country's leading heavy electrical equipment maker, rose as much as 13.57% to hit an intraday high of ₹20,351 on the National Stock Exchange a day after it reported September quarter earnings. On the BSE, Hitachi Energy India shares 13.45% to hit an intraday high of ₹20,350.

Today's up move in the stock marked its best single-day performance in nearly 10 months. Last time the stock moved over 14% was on January 30 when it surged 20%.

Hitachi Energy India post market hours on Monday said that its net profit in September quarter climbed more than 5 times or 405% to ₹264 crore from ₹52 crore in the same period last year.

Its revenue from operations rose 17% to ₹1,760 crore in July-September period as against ₹1,508 crore in the year-ago period.

The Bengaluru-based company reported strong operational performance as its operating profit also known as EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) jumped 256% to ₹227 crore and its EBITDA margin improved to 12.88% from 4.22% a year earlier.

During the quarter, the company won large orders for gas-insulated switchgear (GIS) and air-insulated switchgear (AIS) stations and locomotive transformers worth ₹ 2,217.1 crore, up 13.6% annually.

The company received export orders from utilities in Europe, data centres in Southeast Asia and renewables in the Middle East and North America. Exports contributed 30.4% of the total orders, the company said in a press release.

"Some of the key service orders came from utilities and industries, including an air core reactor for a high voltage direct current (HVDC) project, GIS and & AIS extensions, and repair & retrofitting and the first EconiQ order in India (game changing SF6-free technology)," Hitachi Energy said.

The company had order backlog of ₹29,412.6 crore at the end of September quarter.

"Despite global trade uncertainties and geopolitical tensions, India remains one of the fastest-growing economies. Strong domestic demand, steady investments, and a resilient external sector drive a positive outlook. Key factors such as a favourable monsoon, GST 2.0 reforms, easier access to credit, and rising capacity utilization have contributed to this momentum," the Bengaluru-based company said.

"The country has successfully built-up its non-fossil fuel energy installed base, to 50 percent of its electricity generation capacity. This notable milestone brings with it the challenges of seamlessly integrating intermittent, distributed energy into the national grid. It is essential that we enhance the resilience, reliability, and intelligence of the whole energy ecosystem to effectively deploy the expanding capacity. This shifts the focus to advanced grid technologies, digitalization, and integrated solutions, which is reflected in our operations and financial performance," said N Venu, Managing Director & CEO, Hitachi Energy India.

Hitachi Energy is a global technology leader in electrification, powering a sustainable energy future with innovative power grid technologies with digital at the core. Over three billion people depend on our technologies to power their daily lives.

With over a century in pioneering mission-critical technologies like high-voltage, transformers, automation, and power electronics, we are addressing the most urgent energy challenge of our time – balancing soaring electricity demand, while decarbonizing the power system.

As of 11:31 am, Hitachi Energy India shares traded 12.18% higher at ₹20,120, outperforming the NIFTY Midcap 150 index which was down 0.34%.