Hitachi shares surge over 100% in 2026, Jefferies stays bullish on order-led growth

Hitachi Energy India shares have more than doubled in 2026, and Jefferies believes the rally may not be over yet. The brokerage reiterated its bullish stance on the stock after the company delivered a strong March quarter and continued to benefit from a robust order pipeline, rising demand for transmission equipment and improving operating leverage.

Strong rally, stronger narrative

The stock has been one of the standout performers in the Indian market this year, powered by strong earnings, a healthy order book and investor optimism around the power capex cycle. Jefferies said the company’s growth story remains intact, backed by domestic transmission demand, HVDC (high-voltage direct current) opportunities, data-centre expansion and export traction.

In its note, Jefferies said it expects “rising spend on power equipment and execution of major HVDC orders” to support the company’s next leg of growth. The brokerage also said operating leverage is beginning to show up clearly as revenues scale.

Earnings momentum holds

The March quarter confirmed that momentum. Jefferies said EBITDA came in 46% above its estimate, while revenue rose sharply year-on-year. The brokerage noted that gross margins were broadly stable, but operating leverage helped overall margins improve meaningfully.

The report also highlighted that March-quarter orders were led by HVDC control system refurbishment, grid connection solutions, transformer supply and disconnector orders. Data centres and rail metro projects were described as the other major contributors.

Order visibility supports outlook

A key reason Jefferies remains positive is the company’s large order book. The brokerage said Hitachi Energy’s order book stood at 3.6 times FY26 sales, giving it strong revenue visibility. It also pointed to management commentary that India’s data-centre capacity could rise sharply over the next four to five years, while several large HVDC projects remain in the pipeline.

Jefferies said “one large HVDC order is in bidding stages” and that it expects 3-4 HVDC projects to be awarded over the next two years. The brokerage sees that as a meaningful support for medium-term revenue growth.

Margin expansion story

Jefferies believes the real upside could come from profitability. It said the company is entering a phase where fixed-cost leverage should translate into stronger margins as sales rise. The note expects EBITDA margins to keep expanding over the next few years as the business scales and high-value projects contribute more to the mix.

The report also pointed to exports as an additional margin aid, noting that exports made up around a quarter of FY26 sales and a meaningful share of order flow excluding HVDC.

The company’s latest capex plans also reinforce the demand outlook. Jefferies noted that the board approved a ₹2,000 crore investment in a greenfield power transformer facility, on top of an earlier ₹2,000 crore capex plan announced in 2024. The brokerage said this reflects management’s confidence in sustained industry demand.

Risks to watch

Jefferies did flag execution risk, especially around HVDC project delays and cost overruns, which could affect margin accretion. It also warned that a weaker power-demand environment could slow the capex cycle and temper the growth outlook.

Even so, the tone of the note was clearly upbeat. Jefferies said Hitachi Energy’s combination of strong order visibility, operating leverage and structural demand drivers continues to support the investment case.

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