Hitachi Energy India’s ₹33,335 Crore Backlog: From Grid Orders to Profit

Hitachi Energy India reported ₹4,120.8 crore in new orders, ₹2,996.5 crore in revenue and ₹318.5 crore in profit after tax for Q2 FY27. Revenue grew 63.5% year on year, while net profit rose 20.5%. The quarterly operating EBITDA margin increased to 16.5% from 15.9% on the company’s definition. The net profit margin declined to 10.6% from 14.4%.

Both margin trends can be true at once. The exchange filing explains what the operating metric excludes and publishes the statutory profit and loss statement. Reading the two together is the most useful way to understand the quarter.

Source: Hitachi Energy India Q2 FY27 release, 12 November 2026.

Source: Hitachi Energy India Q2 FY27 board outcome and financial statements filed with NSE.

Trace operating results down to reported profit

Operational EBITDA is the company’s adjusted measure. The filing’s definition excludes specified items, including certain foreign exchange and commodity timing differences and depreciation on tangible assets. Net profit includes items recognised in the statutory statement and reflects tax. Reading an increase in one margin as an increase in the other would miss this difference.

The statutory statement reports a ₹56.07 crore net loss on fair valuation of derivatives and exchange differences in expenses for this quarter. The comparable prior-year quarter showed a ₹12.79 crore gain on the corresponding line in other income. The sign change implies a ₹68.86 crore difference between those two reported lines. Separately, the company describes an ₹88.1 crore notional loss in the timing adjustments used in its definition of Operational EBITDA. The amounts are on different bases. A full reconciliation is needed to identify any overlap before combining them.

The statutory profit bridge can be read without guessing. The current period shows ₹430.40 crore of profit before tax and ₹111.91 crore of tax, leaving ₹318.49 crore of profit. The prior period shows ₹352.91 crore before tax and ₹88.55 crore of tax, leaving ₹264.36 crore. That is an increase of ₹54.13 crore after tax. It is a reconciliation of two accounting periods and does not predict whether valuation gains or losses will recur.

Source: Hitachi Energy India Q2 FY27 board outcome and financial statements filed with NSE.

A 1.38 order-to-revenue ratio is a useful starting point

Divide this quarter’s ₹4,120.8 crore of new orders by its ₹2,996.5 crore of revenue and the result is about 1.38. This is a simple quarterly book-to-bill calculation. The order numerator covers new work won and the revenue denominator reflects work recognised during the period. The work recognised can come from contracts booked earlier, so the ratio gives a measure of booking relative to current scale.

The half-year comparison is revealing. Orders of ₹9,217.3 crore fell 32.0% from the reported ₹13,556.3 crore a year earlier, even as the second quarter showed 85.9% growth. The company attributes part of the difference in comparisons to large high-voltage direct-current contracts. It reported half-year orders excluding HVDC grew 53.1%. A single large order can move one quarter or half-year substantially. Keeping the headline series next to the company’s separately disclosed measure helps identify what changed.

Backlog provides visibility, with its own timetable

The backlog was ₹33,335.4 crore at September-end, the highest the company reported at that point. It includes work with different commissioning, delivery and billing dates. Dividing backlog by one quarter’s revenue can illustrate scale but cannot determine how many quarters of sales the backlog represents. New orders, scope changes, currencies, capacity and long lead times can all affect the conversion schedule.

In a fictional project worth ₹100 crore, a customer might pay ₹20 crore on signing, then pay the rest against factory testing, delivery and commissioning. The advance can arrive before revenue is recognised, while later revenue can be recognised before the related cash is collected. Actual project terms vary. The example shows why order wins, accounting revenue and operating cash flow belong in three different columns.

Which numbers help compare grid-equipment companies?

Check order intake on a similar period, the product and customer mix, the definition of the margin and whether cash keeps pace with delivery. The company said transmission led orders this quarter, followed by data centres. Investors evaluating exposure to either theme should check which activities the company earns revenue from, rather than grouping every electricity-related business under a single assumption. For a fund investor, use the scheme’s dated security weight and its other industrial holdings to measure how much this one company can move the overall portfolio.

Source: Hitachi Energy India Q2 FY27 release, 12 November 2026.

Reader questions

What was Hitachi Energy India’s backlog at September 2026?

Hitachi Energy India reported an order backlog of ₹33,335.4 crore at the end of September 2026.

Did Hitachi Energy India’s margin rise in Q2 FY27?

Company-defined Operational EBITDA margin rose from 15.9% to 16.5% year on year. Net profit margin fell from 14.4% to 10.6%.

What does book-to-bill of about 1.38 mean here?

The company booked about ₹1.38 of new orders for each ₹1 of revenue recognised in the quarter, using the rounded company figures.

Check the exposure inside your funds

Use Stock Analysis to find available mutual-fund holdings of a company, and Fund Research to inspect the relevant scheme. A past monthly disclosure is dated evidence, not a live trade feed. For your own allocation, Portfolio Analysis can help separate a direct position from exposure repeated through several funds. These tools provide context; an event headline is not a reason by itself to change a portfolio.