Shares of Hitachi Energy India surged to an all-time high on Wednesday after the company reported a sharp rise in Q4FY26 earnings and announced fresh capacity expansion plans, prompting brokerages to turn bullish on its long-term growth prospects. The stock hit a record high of ₹37,695 during the session before settling 4.32 per cent higher at ₹37,550 on the NSE, compared with the previous close of ₹35,995.
The company posted a 79.7 per cent y-o-y rise in consolidated net profit to ₹330.5 crore for the March quarter, aided by strong execution and higher revenues. Profit stood at ₹183.9 crore in the corresponding quarter last year. Revenue from operations climbed 46.2 per cent y-o-y to ₹2,754.1 crore in Q4FY26 from ₹1,883.7 crore a year earlier.
In FY26, net profit more than doubled to ₹987.8 crore from ₹384 crore in FY25, while revenue rose to ₹8,147.7 crore from ₹6,384.9 crore. The board also approved a final dividend of ₹8 per share for FY26.
Global brokerage Jefferies maintained its Buy rating on the stock and sharply raised its target price to ₹43,145 from ₹25,000. The brokerage said demand trends remain strong, while high-voltage direct current (HVDC) projects are expected to support growth and margins over the medium term. It also expects earnings per share to grow at a 58 per cent CAGR over FY26-FY28.
HDFC Securities said Hitachi Energy delivered a strong operational performance in Q4FY26, with revenue, EBITDA and adjusted profit after tax exceeding estimates. However, it noted that rising contribution from lower-margin HVDC projects could dilute margins despite supporting absolute EBITDA growth. The brokerage retained its Add rating and raised the target price to ₹31,414, citing robust order pipeline, export opportunities, data centre demand and new product introductions such as battery energy storage systems.
‘Valuations stretched’
However, a few brokerages remained neutral, saying valuations remain stretched for Hitach Energy stock.
Nuvama Institutional Equities said the company’s growth prospects remain strong, supported by execution momentum, a robust ₹2.95 lakh crore order backlog and fresh ₹20 billion capex plans for transformer capacity expansion. However, it maintained a Hold rating, saying valuations remain stretched despite revising the target price higher to ₹34,200.
Motilal Oswal also highlighted strong opportunities in transmission, renewables, exports and data centres, while noting that the company is undertaking an additional ₹2,000 crore capex over its existing expansion plans. The brokerage reiterated a Neutral rating with a revised target price of ₹32,000.
Meanwhile, Emkay Global Downgraded the stock to Reduce from Add (at a revised target price of ₹28,700 from ₹20,825), saying elevated valuations limit further upside despite improving earnings visibility.
Prabhudas Lilladher remains positive in long term given Hitachi Energy being a leading player in HVDC technology with a healthy order pipeline, robust order book of ₹29,560 crore (3.6x TTM revenue), increasing demand from high-growth industries such as data centres and BESS, strong global parentage and improving share of services and exports driving margin expansion.
“The stock is currently trading at P/E of 109.1x/76.0x on the earnings of FY27/28E. We downgrade our rating from Hold to Reduce given sharp rally in stock price valuing the stock at P/E of 65x Mar’28E (60x Mar’28E earlier) arriving at TP of ₹30,768 (₹26,108),” the domestic brokerage said.