Hitachi Energy’s ₹2,000 crore Vadodara plant by FY28

Announcement that moved the stock

Hitachi Energy India shares rose more than 3% on Friday after the company announced a fresh investment plan for a new transformer manufacturing facility in Gujarat. The stock climbed 3.56% to an intraday high of ₹34,435 on the NSE. Gains narrowed later due to profit booking, with the stock trading around ₹34,100, up 2.56%, at about 12:30 pm. The company said it will invest around ₹2,000 crore to set up a new Large Power Transformer (LPT) factory. The facility will come up at Karjan in Vadodara, Gujarat. The announcement was positioned as a response to rising demand for grid equipment and reliable power infrastructure.

What Hitachi Energy is building in Karjan, Vadodara

The planned unit is a greenfield large power transformer factory, according to the company’s updates. Hitachi Energy said the plant is expected to manufacture a significant volume of power transformers annually, aimed at faster delivery of grid equipment. The facility is scheduled for completion in FY28. Once operational, it is expected to serve multiple end uses including high-voltage transmission, HVDC, power generation, AI data centres and large industrial projects. The company also linked the investment to building a stronger domestic energy value chain. It described the project as aligned with the government’s “Make in India” initiative and India’s energy transition objectives.

Board approval and how the decision unfolded

The company indicated that the investment followed its commentary during the FY26 fourth-quarter results. Separately, it disclosed that the Board approved the ₹2,000 crore investment in a meeting held on May 25, 2026. The investment was also reported as having been announced publicly on June 12, 2026. In addition to the new facility announcement, the company reported that this ₹2,000 crore is incremental capex. It said the additional investment takes its cumulative capex commitment to ₹4,000 crore. The disclosures together point to a stepped-up manufacturing plan anchored in Gujarat.

How the plant fits into Hitachi Energy India’s footprint

Hitachi Energy said the Karjan facility will add to its existing manufacturing network. In Gujarat, the company already has power, dry distribution and traction transformer plants. It also operates transformer insulation and component facilities in Mysore and Halol. The company’s statement emphasised that the new factory will complement, rather than replace, the existing footprint. This matters because large power transformers typically have longer lead times and are critical for transmission expansion and renewables integration. By increasing domestic capacity, the company is positioning itself to support India’s grid equipment requirements with more local manufacturing.

Why demand for large transformers is rising

Hitachi Energy linked the investment to growing demand for reliable and efficient power equipment in India. The applications listed for the upcoming output show where demand is concentrated: high-voltage transmission, HVDC links, power generation and large industrial loads. The company also specifically referenced AI data centres, a fast-rising electricity consumer that requires robust and redundant power infrastructure. HVDC, in particular, needs specialised equipment and is closely tied to long-distance transmission and renewable evacuation. The company’s plant plan is framed as capacity addition aimed at “faster delivery of grid equipment,” implying a focus on execution timelines.

Jobs and local economic impact

Hitachi Energy said the project is expected to generate more than 1,000 direct and indirect jobs. It added that the employment impact should contribute to local economic development and skill enhancement. The company did not provide a detailed hiring schedule, but tied the job creation to the plant becoming operational. With completion targeted for FY28, the employment impact will likely build through the construction and commissioning phases and then continue into steady-state operations. The location in Karjan, Vadodara places the unit in an established industrial belt within Gujarat.

Q4FY26 financial snapshot from the company’s disclosures

Alongside the capex plan, the company reported strong Q4FY26 numbers. Hitachi Energy India said revenue from operations rose 46.2% year-on-year to ₹2,754.1 crore for the quarter. Profit after tax (PAT) surged 79.7% to ₹330.5 crore. It also reported profit before tax (PBT) of ₹443.4 crore, up 79.7%. Orders grew 10.6% to ₹2,422.5 crore in the quarter, and the full-year order book was reported at ₹18,456.5 crore. The board recommended a final dividend of ₹8 per share.

Order visibility and HVDC execution

The company also reported a sharp rise in order visibility indicators. In one disclosure, it said the total order backlog surged to ₹29,555 crore in Q4FY26, providing revenue visibility for several quarters. It also said it has secured over ₹20,000 crore worth of HVDC orders. Hitachi Energy is currently executing two mega 6-gigawatt HVDC projects: Khavda-Nagpur and Bhadla-Fatehpur. These details matter because HVDC projects typically involve complex equipment requirements and long execution periods, which can sustain demand for large transformers and related grid hardware.

Market reaction and peer moves mentioned in the update

The immediate market reaction was positive, with the stock moving above 3% intraday before cooling off. A separate market snapshot also cited the stock rising 2.83% to ₹34,180 after the company reiterated the ₹2,000 crore investment plan. The provided historical return table showed a 1-day move of +2.95%, with 1-month +3.66%, 6-month +78.00%, 1-year +95.22% and 5-years +1,735.98%. In the broader context cited, six of 15 stocks in the index hit their respective all-time highs: Adani Power, Bharat Heavy Electricals, CG Power and Industrial Solutions, GE Vernova T&D India, Hitachi Energy India, and Siemens Energy India. These references place the move within a wider rally in power and electrical equipment names.

Key facts at a glance

Why the investment matters for the power equipment cycle

The scale and timing of the investment are closely linked to India’s grid expansion and energy transition requirements stated in the disclosures. Large transformers are core equipment for transmission build-outs, renewable integration, and industrial electrification. The company’s emphasis on faster delivery suggests lead times and capacity constraints are important considerations in the current cycle. The additional ₹2,000 crore also raises cumulative planned capex to ₹4,000 crore, indicating the company is committing capital alongside a strong reported order pipeline. The combination of FY28 commissioning and a large reported backlog points to a multi-year execution runway, without the company making any near-term output claims beyond the commissioning timeline.

Conclusion

Hitachi Energy India’s plan to invest ₹2,000 crore in a new large power transformer factory in Karjan, Vadodara, with completion scheduled for FY28, was the key trigger behind the stock’s intraday rise. The project is expected to create more than 1,000 jobs and complements the company’s existing manufacturing base across Gujarat, Mysore and Halol. Financial and order disclosures for Q4FY26 highlighted strong revenue growth, higher profitability and a sizeable reported backlog. The next clear milestone is progress updates on construction and commissioning, given the FY28 completion target and the company’s stated goal of improving delivery capacity for grid equipment.