Hitachi Energy India Limited delivered exceptional financial performance in Q3FY26, with both revenue and profitability showing robust year-on-year growth. The company's net profit significantly exceeded previous year figures, while operational EBITDA margin reached double-digit levels, demonstrating strong operational efficiency.

Financial Performance Overview

The company's Q3FY26 results demonstrate substantial improvement across key financial metrics:

Profitability and Margins

Hitachi Energy India's net profit reached ₹261.42 crores in Q3FY26, marking a remarkable 90.3% increase from ₹137.38 crores in the corresponding quarter last year. The profit before tax (before exceptional items) showed even stronger growth of 118.4%, reaching ₹402.02 crores compared to ₹184.06 crores in Q3FY25.

The company's operational EBITDA doubled to ₹338.4 crores from ₹168.9 crores year-on-year, with the operational EBITDA margin improving significantly to 15.6% from 10.1% in the previous year, reinforcing operational strength and strategic agility.

Revenue Performance and Order Book

Total income for Q3FY26 reached ₹2,168.01 crores compared to ₹1,672.38 crores in the corresponding period last year, representing solid 29.6% year-on-year growth. This growth was driven by robust demand in India and key international markets, expanded market share, and successful execution of strategic initiatives.

The company maintained strong order momentum with orders totaling ₹2,477.6 crores during the quarter, up 73.7% year-on-year excluding a large order from the previous year. The order backlog reached a record high of ₹29,872.2 crores, providing revenue visibility for several upcoming quarters.

Nine-Month Performance

For the nine months ended December 31, 2025, the company demonstrated consistent performance with total income of ₹5,603.64 crores compared to ₹4,520.25 crores in the corresponding period last year. Net profit for the nine-month period reached ₹657.38 crores, significantly higher than ₹200.09 crores in the previous year, representing a substantial improvement in profitability.

Market Outlook

Managing Director & CEO N Venu highlighted the company's strategic position in India's evolving energy landscape, noting the increasing pace of electrification and growing demand from AI-ready data centers. The recent EU-India FTA is expected to strengthen clean-energy collaboration, particularly in renewables and green hydrogen, creating enhanced opportunities for technology exchange and investment flows in the energy sector.

Hitachi Energy India Limited has received an income tax assessment order for Assessment Year 2022-23, resulting in a significant tax demand that the company intends to challenge through legal channels.

Tax Assessment Details

The company received the assessment order on January 23, 2026, at 03:39 pm IST from the Assessment Unit of the Income-tax Department. The order was passed under multiple sections of the Income-tax Act, 1961, including Section 143(3) read with Section 144C(13) and Section 144B, along with a notice of demand issued under Section 156.

Nature of Alleged Violations

The income tax authorities have raised concerns regarding specific financial practices of the company. The assessment order pertains to alleged disallowances in two key areas:

• Interest on delayed receivables
• Group management fee

These disallowances form the basis of the substantial tax demand imposed by the authorities.

Company's Response and Legal Position

Hitachi Energy India has strongly contested the tax demand, characterizing it as fundamentally flawed. The company's management has assessed the order based on factual circumstances and prevailing legal provisions, concluding that both the tax demand and associated interest are problematic on multiple grounds.

The company's official position states that the demand is arbitrary, unjustified, and unsustainable under current tax law. This assessment suggests that Hitachi Energy India believes it has strong grounds for challenging the order through appropriate legal channels.

Planned Legal Action

In response to the assessment order, the company has outlined its intention to pursue formal legal remedies. Hitachi Energy India plans to file an appeal with the Income-tax Appellate Tribunal (ITAT) within the timeline permitted under tax regulations.

This disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders regarding material developments affecting the company's financial position.