Shares of Hitachi Energy India Ltd gained 3% on Friday after the company announced plans to invest about ₹2,000 crore to set up a new manufacturing facility for large power transformers.
The stock rose to ₹34,250 from the previous close of ₹33,250. The company has a market capitalisation of ₹1.52 lakh crore and trades at a price-to-earnings ratio of 150.
New transformer plant planned in Gujarat
Hitachi Energy India will establish a Large Power Transformer (LPT) factory at Karjan in Vadodara, Gujarat.
The facility is expected to be completed in FY28. It will add to the company’s existing transformer and insulation manufacturing units located in Gujarat, Mysore and Halol.
The company said the plant will manufacture a substantial volume of power transformers every year.
The transformers will cater to:
- High-voltage transmission projects.
- HVDC applications.
- Power generation projects.
- AI data centres.
- Large industrial users.
Digital facility
The upcoming unit is planned as a fully digital and LEED-certified factory.
It will feature:
- Smart manufacturing technologies.
- End-to-end digital connectivity.
- Data-driven operations.
- Systems aimed at ensuring quality output.
Demand outlook
The investment comes amid rising demand for transmission equipment.
According to the Central Electricity Authority (CEA), India will require transmission infrastructure investments worth ₹7.93 lakh crore to integrate more than 900 GW of non-fossil fuel-based energy by 2035.
Hitachi Energy said the new factory will help serve domestic demand and strengthen its “Make in India” commitment.
The project is also expected to generate more than 1,000 direct and indirect jobs.
FY26 performance
Hitachi Energy India reported strong growth during FY26.
Key numbers include:
- Revenue increased to ₹8,148 crore from ₹6,385 crore in FY25, up around 28%.
- Net profit rose to ₹988 crore from ₹384 crore, registering growth of more than 157%.
- Operating profit margin improved to 15% from 9% a year earlier.
In the fourth quarter of FY26, the company posted:
- Revenue of ₹2,754 crore.
- Net profit of ₹330 crore.
- Operating margin of 15%.
About the company
Listed as POWERINDIA on the NSE and BSE, Hitachi Energy India Ltd operates in electrification, grid infrastructure and industrial solutions.
The company is part of the global Hitachi Energy group and has been present in India for 77 years. It has manufacturing facilities across Gujarat, Mysore and Halol.
TL;DR:
Hitachi Energy India shares rose 3% after the company announced a ₹2,000 crore investment to build a large power transformer plant in Gujarat. The facility, expected to be completed in FY28, will support rising demand from transmission projects, data centres and industrial users.
AI summary:
- Hitachi Energy India plans to invest ₹2,000 crore in a new transformer factory.
- The facility will come up in Karjan, Vadodara, and is targeted for FY28 completion.
- The project is expected to create over 1,000 direct and indirect jobs.
- India may require ₹7.93 lakh crore of transmission investments by 2035, according to the CEA.
- FY26 net profit jumped more than 157% to ₹988 crore.
