New Delhi. In the last one year, Nifty Energy Index has fallen by more than 3%. Foreign investors have also sold in the year 2025. In the first fortnight (15 days) of December 2025 alone, FIIs made a net sale of about $ 1.96 billion. Amidst this slowdown and decline, foreign institutional investors (FIIs) are investing a lot of money in a particular power stock. The stock that is attracting foreign investors is Hitachi Energy India Share. According to the data of the second quarter (Q2FY26) of the financial year 2025-26, FIIs have increased their stake in this stock with a strong increase of 2.48 percentage points to 9.7%. A year ago this share was only 5.1%.
In the last one year, the share of Hitachi Energy India has risen 36.80 percent. This stock has gained 20 percent so far in the year 2025, while its price has fallen by about 14 percent in the last one month. Currently, the stock is trading below its 52-week high of Rs 22840 and more than double its 52-week low of Rs 8800, trading at Rs 18590.
FII invested a lot of money in the decline
The special thing is that during the time when FIIs were buying, the share price had slipped from the level of ₹ 20,000 to around ₹ 18,000. That is, when retail investors were getting scared and leaving, then the big players of the market attacked and made vigorous purchases. This shows that the confidence of foreign investors is not on the short-term price of the company, but on the long-term fundamentals.
Why are FIIs investing money in Hitachi Energy?
Why are FIIs so kind to this stock? The answer lies in the biggest problem of the energy sector i.e. ‘Energy Storage and Grid Management’. India is moving rapidly towards renewable energy, but the problem is that the grids are not capable of handling this electricity. This is where Hitachi Energy seems to be ahead of others. The company is considered the king of ‘Grid Automation’. It provides software and hardware solutions to modernize the distribution network, making substations and communication networks smart.
Hitachi not only sells electrical equipment, but also provides ‘Digital Nervous System’ to Discoms, which reduces power wastage and ensures accurate monitoring.
Order book full, exports also strong
The results of the July-September quarter show that the company has no shortage of work. Order value in the renewable energy segment has increased by 40% year-on-year. But the real ‘outperformance’ was seen in the railway and metro segments, where a tremendous growth of 61% was recorded in orders. Hitachi’s influence continues even outside India. There has been a 59% jump in the company’s export orders on an annual basis. These orders from developed markets like Europe, Middle East and North America prove that Hitachi’s technology is globally competitive. Although there has been a slowdown in the data centers and transmission segments, the company’s balanced portfolio has managed to cover this shortfall.
‘Super plan’ to illuminate 6 crore houses
Mega project with Bharat Heavy Electricals Limited (BHEL) can prove to be a ‘game-changer’ for Hitachi Energy. This is no small project, but the design and supply of a High-Voltage Direct Current (HVDC) terminal to deliver renewable energy from Rajasthan to Uttar Pradesh. More than 6 crore houses in India will get electricity through this. This is an important part of India’s 500 gigawatt (GW) renewable energy plan.
406% jump in profits
When we talk about financial figures, Hitachi Energy’s numbers seem like the speed of a rocket. The company’s sales increased from ₹1,554 crore in Q2FY25 to ₹1,833 crore in Q2FY26, showing a growth of 17.9% year-on-year. Similarly, Net Profit has directly increased from ₹ 52 crore to ₹ 264 crore i.e. a historical increase of 406% on annual basis. This extraordinary jump in profits is the reason why investors are chasing this stock despite its expensive valuations.
Is Hitachi Energy India Share expensive?
Good things never come cheap in the stock market and Hitachi is the biggest example of this. Currently this stock is trading at a price-to-earnings (P/E) ratio of 112.8 times. If you compare it with the industry average (42.1), this stock will appear to be touching the sky. Premium valuation means that the market has already factored in future major breakthroughs. In such a situation, investors need to be very careful.
There are also obstacles in the path of Hitachi Energy
Like any investment, some risks are clearly visible in Hitachi too. Let us know about them-
- Regulatory Hurdles: Transmission and distribution projects take a very long time. Delay in government approvals can increase the cost.
- Policy Changes: Changes in central or state governments may lead to changes in power policies, due to which projects may get stuck midway.
- Raw material kill: The rise in prices of commodities like copper and steel can directly impact the company’s margins.
- Execution Risk: Since expectations are very high, if the company performs poorly in even one quarter, there could be a huge ‘correction’ in the stock.
Should you invest money in Hitachi Energy shares?
Hitachi Energy India today stands at a point where it has become the ‘digital solution’ to the Indian electricity crisis. Foreign investors betting on it is an indication that they are not just seeing electricity poles, but they are seeing the ‘smart grid’ of tomorrow. However, premium valuations and uncertainties in the energy sector make investing in this stock a bit risky. If you are a long term investor then you can bet on this stock.
(Disclaimer: The information given here is based on the performance of the shares. Since investing in the stock market is subject to market risk, please consult a certified investment advisor before investing. StuffUnknownHindi will not be responsible for any loss you may incur.)
