Hitachi Energy India Limited delivered exceptional financial performance in Q3, with both revenue and profitability showing robust year-on-year growth. The company's net profit significantly exceeded previous year figures and analyst estimates, while EBITDA margin reached 18.36%, demonstrating strong operational efficiency.

Financial Performance Overview

The company's Q3 results demonstrate substantial improvement across key financial metrics:

Profitability and Margins

Hitachi Energy India's net profit reached ₹2.60 billion in Q3, marking a remarkable 89.78% increase from ₹1.37 billion in the corresponding quarter last year. The company exceeded analyst estimates of ₹2.45 billion, demonstrating strong operational execution and market positioning.

The company's EBITDA more than doubled to ₹3.70 billion from ₹1.67 billion year-on-year, with the EBITDA margin improving significantly to 18.36% from 10.30% in the previous year, reinforcing operational strength and strategic agility.

Revenue Performance

Revenue for Q3 reached ₹20.80 billion compared to ₹16.20 billion in the corresponding period last year, representing solid 28.40% 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.

Market Outlook

The strong financial performance positions Hitachi Energy India well in India's evolving energy landscape, with increasing pace of electrification and growing demand from AI-ready data centers. The company's improved margins and revenue growth reflect its strategic position in the clean energy transition and infrastructure development sectors.

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.