Hitachi Energy India Outlines Next Growth Phase With ₹4,000 Crore Capex, Strong Order Pipeline and New Energy Opportunities
Hitachi Energy India Ltd has outlined an ambitious expansion strategy aimed at benefiting from India’s rapidly rising electricity demand, grid modernization, renewable-energy integration, battery storage, data centres and electrification.
In its latest presentation titled “The Next 25 – Shaping India’s Resilient Energy Future”, Managing Director and CEO N Venu highlighted the company’s plans to expand manufacturing capacity, strengthen its services business, increase exports and participate in new growth areas across India’s electricity infrastructure.
A key takeaway for investors is the company’s ₹4,000 crore cumulative capex commitment, including a recently announced ₹2,000 crore investment in additional capacity.
₹4,000 crore cumulative capex planned
Hitachi Energy India said it has been investing ahead of demand to expand its manufacturing footprint and prepare for the next phase of India’s electricity infrastructure cycle.
In May 2026, the company announced a ₹2,000 crore capex programme, including a greenfield large power transformer facility in Vadodara. This takes the company’s cumulative capex to approximately ₹4,000 crore.
The investments are aimed at expanding capacity across areas such as:
- Large power transformers
- Power quality equipment
- HVDC systems
- GIS-related products
- Pressboard
- Railway and transportation solutions
- Grid modernization technologies
- Other equipment required for India’s expanding transmission infrastructure
The company said its capacity expansion is being undertaken ahead of expected demand growth.
India’s electricity demand could double by 2035
Hitachi Energy’s presentation highlights the structural growth opportunity created by India’s electrification.
According to the company’s presentation, India’s electricity demand is projected to rise from around 1,622 TWh in 2023 to 3,365 TWh by 2035, while electricity’s share of total final energy demand is expected to increase from 19% to 25%.
The company expects several structural trends to drive this demand:
- Industrial electrification
- Electric mobility
- Data centres and AI infrastructure
- Urbanisation and cooling demand
- Renewable-energy expansion
- Energy storage
- Rail and metro electrification
- Industrial decarbonisation
This creates a long-term requirement for additional generation as well as transmission, distribution, grid flexibility and digital management infrastructure.
₹7.93 lakh crore transmission investment opportunity
One of the largest opportunities highlighted in the presentation is India’s planned transmission expansion.
The company’s presentation cites the transmission plan for 2035-36, which includes:
- 459 GW peak demand
- Around 1,121 GW total installed capacity
- Around 786 GW non-fossil capacity
- Evacuation of approximately 900 GW of non-fossil power
- Around 138,000 circuit km of planned circuit expansion
- 66 GW of HVDC links
- Three 1,150 kV AC transmission corridors
- Estimated transmission investment of approximately ₹7,93,300 crore
For Hitachi Energy, this represents a potentially significant addressable market across transformers, HVDC, grid automation, digitalization, power-quality equipment and related services.
The company is particularly positioned in high-voltage transmission technologies, including HVDC and ultra-high-voltage equipment.
Battery storage emerging as another major growth area
Battery Energy Storage Systems, or BESS, are another major opportunity identified by Hitachi Energy.
The presentation cites the National Generation Resource Adequacy Plan and shows BESS capacity potentially increasing from around 0.3 GW in FY26 to 80 GW by FY36, with corresponding storage requirements increasing substantially.
The company estimates that BESS deployment will become increasingly important as India adds large amounts of variable solar and wind generation.
Hitachi Energy is positioning itself to provide end-to-end BESS solutions, covering grid connection, power conversion systems, transformers, switchgear and related infrastructure.
The company also highlights the government’s battery-storage initiatives and the potential investment requirement for India’s targeted BESS capacity.
Data centres create a new power-infrastructure opportunity
The rapid expansion of data centres and AI infrastructure is another important growth driver.
Hitachi Energy estimates that India’s data-centre capacity could reach around 13.65 GW by 2030, driven by AI workloads, cloud adoption and data-localisation requirements.
The company points out that reliable and high-quality electricity is becoming a critical requirement for data centres.
This creates opportunities for:
- Grid-to-rack power solutions
- High-reliability electrical systems
- Transformers
- Power-quality solutions
- Digital grid management
- Energy storage
- Asset monitoring and services
Hitachi Energy says its technology is already used by major hyperscale data-centre operators.
Railway, metro and EV electrification
The company also sees substantial opportunities from transportation electrification.
According to the presentation, the electrification of India’s broad-gauge railway network could add approximately 29 billion units of incremental annual electricity demand through 2030.
The company estimates a cumulative rail-sector market opportunity of approximately ₹7,640 crore by 2030, driven by railway electrification and expansion of Vande Bharat, Vande Metro and locomotives.
The metro segment is another potential growth area, with Hitachi Energy estimating a market opportunity of approximately ₹3,900 crore by 2030.
The company is also targeting the growing EV charging infrastructure market.
Order growth remains a key investor monitor
Hitachi Energy India has significantly increased its scale over the last several years.
The presentation shows approximately:
- 5x growth in orders between FY19 and FY26
- 3.7x growth in revenue from operations
- 2x growth in employees across the Hitachi Energy ecosystem in India
The company’s FY26 financial presentation also showed strong order activity across key businesses.
Conductor business
The Conductor business reported:
- FY26 revenue of ₹12,712 crore
- FY26 EBITDA of ₹1,040 crore
- FY26 new order inflow of ₹11,450 crore
- New order inflow growth of 24.2% YoY
- Pending order book of ₹7,671 crore
- Export share of the pending order book at 38.9%
The company said revenue growth was supported by volume growth, product mix and higher realizations.
Premium products also increased their contribution, with premium product mix reaching 45.8% for FY26, compared with 40.6% in FY25.
Cable business
The Cable business reported:
- FY26 revenue of ₹6,220 crore
- FY26 EBITDA of ₹633 crore
- EBITDA margin of 10.2%
- Pending order book of ₹1,800 crore
Exports represented 32.3% of FY26 cable revenue.
The company highlighted strong growth in both domestic and export markets, along with increasing demand from renewable energy, railways, infrastructure and other sectors.
Services business could create recurring revenue
Hitachi Energy has identified services as another long-term growth lever.
The company launched its dedicated services business on April 1, 2025, with the objective of building a higher-quality recurring revenue stream through its large installed base.
The presentation highlights an installed base of approximately 1.4 lakh assets in India.
The company is using digital technologies, data and AI to develop asset-management solutions that can help customers monitor equipment condition, predict failures and extend asset life.
Its HMAX Energy platform is positioned around AI-enabled asset management and the growing requirements for grid resilience, cybersecurity, sustainability and aging infrastructure.
Export growth is another strategic focus
Hitachi Energy India is also seeking to increase India’s role as an export base for the global Hitachi Energy network.
The company highlighted several factors supporting this strategy:
- Global-quality manufacturing standards
- Scalable Indian manufacturing capacity
- Regulatory and customer homologation
- Regional demand
- Potentially margin-accretive export opportunities
The company said its India operations already supply markets across Asia-Pacific, Europe, the Americas and Africa.
This provides another potential growth avenue beyond India’s domestic transmission and electrification cycle.
Management’s growth strategy
Management’s strategy can broadly be grouped into three areas:
1. Expand capacity and maintain operational efficiency
Hitachi Energy plans to invest in additional manufacturing capacity while maintaining operational excellence and productivity.
2. Enter new addressable markets
The company intends to accelerate growth in areas such as:
- Battery storage
- Data centres
- Digital grid solutions
- Services
- E-mobility
- Renewable integration
- Advanced transmission technologies
3. Build recurring and export-led growth
The company wants to use its large installed base to expand services while simultaneously increasing exports from India.
Management has also indicated its intention to maintain a healthy order-book-to-revenue ratio, providing visibility while allowing the business to manage execution and growth.
Management commentary: Focus on profitable growth
Managing Director & CEO N Venu has emphasized the need to combine growth with operational execution.
The presentation describes the company’s priorities as:
- Focusing on operational excellence
- Accelerating strategic growth
- Reinforcing market leadership
- Investing in additional capacity
- Leveraging digitalization and innovation
- Expanding services
- Entering new high-growth addressable markets
- Improving productivity and volume leverage
The company’s stated objective is therefore not simply capacity expansion, but profitable growth supported by capacity, services, digitalization and new markets.
What investors should watch next
The key points to monitor going forward are:
Capex execution:
The ₹4,000 crore cumulative investment programme will need to translate into additional capacity and revenue growth.
Order inflows:
Continued order growth will be important for maintaining revenue visibility as new capacity comes online.
Order-book conversion:
Investors will need to track how quickly the existing order pipeline converts into revenue and cash flow.
Margins:
Higher volumes and premium products could support profitability, while large project execution, raw-material costs and capacity expansion remain important variables.
Services growth:
The company’s 1.4 lakh installed assets provide a sizeable base for developing recurring service revenue.
Exports:
Increasing exports from India could diversify revenue and provide access to global infrastructure spending.
BESS and HVDC:
The rapid expansion of storage and transmission infrastructure could become important growth drivers over the medium to long term.
Data-centre infrastructure:
The growth of AI and hyperscale data centres is creating demand for highly reliable power infrastructure.
Important points from the Hitachi Energy India presentation
- ₹4,000 crore: cumulative capex highlighted by the company
- ₹2,000 crore: latest capex programme announced in May 2026
- ₹618? No — this figure does not apply to Hitachi Energy; the company’s cumulative capex figure is ₹4,000 crore
- ₹7,671 crore: pending order book in the Conductor business
- ₹1,800 crore: pending order book in the Cable business
- ₹11,450 crore: FY26 Conductor new order inflow
- 24.2%: FY26 Conductor order-inflow growth
- ₹1.4 lakh: approximate installed assets supporting the services opportunity
- ₹7.93 lakh crore: estimated transmission investment cited for India’s 2035-36 transmission plan
- 66 GW: HVDC links identified in the transmission plan
- 900 GW: non-fossil power evacuation planned
- 80 GW: BESS capacity shown for FY36 in the company’s presentation
Future plan and outlook
Hitachi Energy India’s next phase is closely linked to India’s transition from a generation-focused power system towards a larger, more flexible and digitally managed electricity network.
The company is investing in manufacturing capacity while targeting transmission, HVDC, renewable integration, storage, data centres, railways, EV infrastructure, services and exports.
For investors, the key issue is now execution — whether the company’s capacity investments and large addressable market translate into sustained order inflows, order-book conversion, revenue growth and profitable returns on capital.
With India’s electricity demand expected to rise significantly over the next decade, Hitachi Energy India is positioning its business around the infrastructure required to transmit, manage, store and efficiently consume that electricity.
Disclaimer: This article is based on information presented by Hitachi Energy India Ltd and cited industry/government sources. Forward-looking statements, market opportunities and management expectations are subject to risks and uncertainties. This article is for informational purposes only and should not be considered investment advice.