Hitachi Energy India (POWERIND IN) – Q1FY27 Result Update – Robust order backlog anchor stronger growth visibility

We revised our EPS estimates by +13.8%/+10.6% for FY27E/FY28E factoring in stronger than expectation execution, robust order inflows and margin outperformance driven by better operating leverage. Hitachi Energy India (POWERIND) reported a strong Q1FY27 performance, with revenue growing ~68.6% YoY while EBITDA margin expanded ~450bps YoY to ~16.0%, driven by disciplined execution, favourable operating leverage and a healthy project mix despite an unrealised forex loss of ~Rs360mn. Order inflow remained robust at ~Rs51bn (+26% YoY, ex-HVDC), taking the order book to a record ~Rs322.2bn and providing strong multi-year revenue visibility. Order momentum remained broad-based across renewables, industries, exports and data centres, with the company securing its maiden BESS project, multiple hyperscaler orders and a ~Rs17bn offshore wind transmission project in Europe. The export pipeline continues to strengthen, with exports contributing ~25% of revenues and the order book. The HVDC pipeline remains healthy, with new greenfield projects expected to be awarded by Q3FY27, while execution of existing projects remains on track and revenue contribution is expected to accelerate from the second and third years of execution. The Karjan manufacturing expansion should further enhance capacity, localisation and export capabilities. Structural growth drivers remain intact across grid modernisation, renewable integration, HVDC, BESS and AI-led data centres, supported by a healthy bidding pipeline and limited commodity risk through pass-through contracts. The stock is currently trading at P/E of 86.8x/62.3x on the earnings of FY27/28E. We upgrade our rating from ‘Reduce’ to ‘Hold’, supported by improved revenue visibility aided by healthy order backlog and better operating leverage, valuing the stock at P/E of 65x Mar’28E (same as earlier) arriving at TP of Rs34,026 (Rs30,768)