Good afternoon, everyone. A warm welcome to all participants joining us today's call.

We are delighted to have you with us for the quarter four financial year '26 earnings conference call of Hitachi Energy India Limited. Before we proceed, I would like to remind everyone that certain statements made during this discussion may be forward-looking in nature.

Actual results could differ materially due to various external factors. With that, I now invite Managing Director and CEO of Hitachi Energy India Limited, Mr.

Venu, to take us through his insights on the results. Over to you, sir.

Thank you, Priyanka. Good morning, ladies and gentlemen.

It's a pleasure to be here. Let me also once again introduce my colleague who recently joined, Priyanka, as the Head of Investor Relations.

Please get in touch with her anytime if you need any more information or anything else on our company. We are happy to do that to support you on that.

Once again, good afternoon, and thank you for joining us for the analyst conference call. I hope you're all doing well, taking care of yourself.

As you have seen from our press release, we have announced our quarter four and full year FY '26 results yesterday. Over the next 20, 25 minutes, I will walk you through our performance for the period ending March 31st, 2026.

As always, you may follow the presentation through the webcast or download it. We have just uploaded it into into the into the BSE and and stock exchanges website.

I'll continue to refer the slide numbers for ease of reference if you are on the move so that you can understand that. Today, in addition to Priyanka, also joined in the room by our CFO, Ajay Singh, and our General Counsel and Company Secretary, Poovanna Ammatanda.

As you know as well, at the start of this FY '26, our priority was clear: sustain the strong growth momentum from FY '25 while driving higher operational efficiency. Despite volatile geopolitical environment is still continuing, we remained disciplined in execution and focused on managing supply chain and cost pressures effectively.

I am pleased to report that we have delivered another quarter and another year of strong performance, closing FY '26 well ahead of our previous year in all the KPIs. Our growth has been supported by consistent execution, a resilient business model, and and a strong go-to-market and sustained demand across across segments.

A key highlight of is key highlight is our record order backlog of ₹29,555 crore as of March 31st, 2026, which provides strong revenue visibility for several quarters going forward. This reflects continued customer confidence and our ability to win and execute large and complex projects.

The successful commissioning of India's first city infeed project in Mumbai further demonstrates our execution capabilities and reinforces our position as a trusted partner in critical grid infrastructure. Together with all our board members, we just visited the Mumbai city infeed project site this morning.

I'm just coming straight from that. This is one of the most, engineering marvel to deliver, and I see that, the project is pumping the power.

While India remains exposed to global energy price volatility, this also strengthens the structural investment case for transmission and grid infrastructure. Our performance in the last quarter reflects this dynamic.

We have navigated a temporary industry slowdown while continuing to invest in long-term growth opportunities and margin resilience. Looking ahead, the demand outlook remains robust, supported by energy transition, grid expansion, and increasing electrification.

At the same time, geopolitical developments continue to highlight the urgency around energy security, energy transition, and also domestic capability building. Hitachi Energy, in our view, is well positioned to capture these opportunities given our strong order book, strong order backlog, our technology leadership, and proven execution track record, and our customer intimacy.

Starting with the presentation, I move to the slide number three. As you all know, safety remains integral part to our operations, and we call as a license to operate, and we are committed to embedding best-in-class safety practices across our factories and project sites and offices.

We are proud to report zero fatalities during the financial year just concluded, reflecting the effectiveness of our proactive safety culture and risk management measures. Further, reinforcing this commitment, we conducted several life-saving rules, more than 1,700 life-saving rule inspections, ensuring continued vigilance and adherence to safety protocols.

At Hitachi Energy, our employees, our subcontractors' wellbeing is deeply ingrained in our culture. Annual health checkups, ongoing safety awareness sessions form core part of our approach, underscoring our belief that safety and health are non-negotiable priorities.

Our consistent efforts have been recognized and appreciated by leading third-party agencies and customers, reaffirming our position as a trusted and responsible organization. As you can see from the slide, during the quarter, we have won several awards from our customers and partners in enhancing the safety culture at their work at their project sites.

If I move to the slide number four, sustainability remains central to our strategy with a strong focus on decarbonization decarbonizing our operations. We are proud to have achieved 100% renewable energy in our operations through rooftop solar and various other means like, engaging the long-term power purchase agreement with the solar developers and etc.

During the year, we surpassed our water reduction targets, achieving an 11% reduction from the baseline of 2019 through recycling initiatives and the deployment of efficient fixtures. Notably, our Halol facility in Gujarat earned a Water Positive Index certificate, underscoring our commitment to responsible water stewardship.

In addition, both our Halol and Mysuru facilities have been certified Platinum for Zero Waste to Landfill, reflecting our continued progress in circular resource management and waste minimization. Beyond environmental stewardship, we have made a meaningful strides in governance and social impact.

We increased gender diversity substantially, reinforcing our commitment to building an inclusive workplace. At the same time, we continue to uphold an uncompromising commitment to integrity with a zero instance recorded during the year.

Our efforts continue to be recognized externally. We are pleased to report that our CRISIL Sustainability ESG rating improved to 61, which is basically called strong in FY '26, while our NSE ESG rating increased to 62, which is adequate, reflecting sustained sustained progress across key ESG dimensions.

I move to the slide number five. Some of this information, you already know that, but let me put our performance in the context of broader dynamics.

The current geopolitical situation in Middle East has triggered pressure on the supply chains. However, we have put several mitigation measures to address the temporary challenges which not only we are paying, but whole not only we are facing it, but whole industry is facing.

Along with that, we are witnessing is a clear structural transformation in the energy landscape in India driven by energy security priority, policy support, localization, and accelerating electrification across multiple sectors. India's electricity demand is poised for a strong, sustained growth over the coming decade, supported by industrial expansion, renewable integration, EV adoption, and the rapid scale of the new age load centers such as data centers.

At the same time, the grid is becoming more complex with a higher load density, increasing reliability requirements, and new demand drivers such as AI-led workloads. This is leading to significant investments across the transmission, distribution, and grid infrastructure.

Across segments, the opportunity is compelling: strong momentum in renewable transmission invest- transmission investments to integrate non-fossil capacity, a visible industrial capex cycle, rising data center investments, and early-stage, but accelerating EV penetration. In parallel, improving discom health and fundamental is enabling higher spending in distribution.

Overall, these trends reinforce our confidence in a multiyear growth opportunity, and we and we believe we are well positioned to capture this throughout our strong market presence, execution capabilities, and continue to focus on technology, capacity expansion, and people. I move to slide number six.

Our operating momentum remained strong and firmly on on track of on track throughout the quarter ending March 3- March 31, 2026. During the quarter, we recorded orders of ₹2,422.5 crore and revenue of ₹2,751 crore, and which has a growth on a year-on-year basis orders of 10.6% and a revenue of 46.2% growth on a year-on-year on year-on-year basis.

Similarly, and and when it comes to the profit before tax is is around ₹443.4 crore, and profit after tax is ₹330.5 crore, reflecting a solid operational performance in that. Also, this quarter is also ending our this quarter ending is also our full year ending.

For the full year period, as you can see here, we reported a strong orders as a second year in a row with at a high base, we have a growth of 1.6% at ₹18,456.5 crore. The revenue on a complete year, ₹8,147.7 crore of growth of 27.6%.

PBT is ₹1,375.2 crore, a growth of 166.3%. PAT is ₹987.8 crore, a growth of 157.3%.

EBITDA on a on an annualized basis is 15.4%. Look at our strong operating cash in this year is ₹1,746 crore and strong order backlog of ₹29,553 crore of increase on a year-on-year basis 53.6%.

During this if I go to the next slide, during this year, we have commissioned, very, very important project as I talked about, Mumbai city infeed project of 1,000 megawatt on a VSC-based technology in that. This includes entire design, engineering, supply, erection, and commissioning of HVDC converter station at Aarey and Kudus, and supporting 1,000 megawatt of power into the Mumbai streets in that.

Similarly, we've also commissioned several other projects in this year. For example, renewable substation at Barmer, and renewable substation at Barmer, and also transformer supply to leading utilities, and then then GIS substations in Rajasthan and several other things.

These projects underscore our strong execution capabilities across diverse segments and geographies. Our comprehensive scope of work spans the entire value chain, including design, engineering, manufacturing, supply, erection, testing, and end-to-end commissioning, enabling us to deliver integrated, high-quality solutions to our customers.

I move to the next slide, that is slide number eight. At Hitachi Energy, we are committed to leading purpose leading with a purpose and creating a positive impact on industry and society.

We firmly believe in translating our strategies into meaningful action. In line with this commitment, we actively participated in India Energy Week 2026, engaging with key stakeholders and fostering global partnerships that are shaping the next era of energy transition and progress.

Artificial intelligence has become the new normal across industries, and energy sec- energy sector is at the forefront of this transformation. It is imperative for us to adapt to this evolving landscape.

Engaging at such industry forums and summits bring not only fresh per- fresh perspective to our businesses, but we also leading actively actively in the in the in the dialogues. As part of the India's AI Impact Summit, we hosted a pre-event to explore the changing role of energy in the age of AI, and industry leaders across Ministry of Power and and Ministry of MeitY and IT has joined us at that platform.

We showcased our portfolio of products and solutions at the Bharat Electricity Summit, one of the largest transmission energy events in the country. Our booth at the event was honored by the honorable ministers, Minister of Power, Minister of the Renewable, and critical members of of the power industries to to listen to us and to see our state-of-the-art technology products which are on display.

I move to slide number nine to give a little more additional context on our order intake for the full year FY '26. Order intake for FY '26 has demonstrated growth across the sectors: industry, data centers, railways, and renewables.

You are seeing the a small dip in the transmission is is basically, due to the large orders in miss out of the large orders, but also some of the products has been delayed in that. On the right-hand side, the order mix is illustrated on the on the right.

The chart highlights that the product segment has taken the lead, and while utilities and direct and customers emerged as a clear winners across their respective sectors and channels. I move to the next slide, which is very important and strategic slide for us.

Let me also take the moment to highlight an important of this development. During our quarter four FY '26 board meeting, the board approved an incremental investment incremental additional investment of ₹2,000 crore.

This includes, among other initiatives, the establishment of state-of-the-art greenfield large-type transformer facility in place Karjan, Vadodara in Gujarat. This is an accelerated execution program, and we would like to complete this state-of-the-art greenfield transformer factory to produce our large power transformers and also HVDC converter transformer by last quarter of 2028 calendar year.

This investment is over and above the capital expenditure program we had previously announced in October 2024. With this, our total cumulative capex commitment now stands close to Indian rupees ₹4,000 crore.

We believe that we believe that this investment will significantly strengthen our manufacturing capabilities in India and position us well to capture the strong demand outlook in the sector, not only from the renewable, transmission, but also new age sectors such as data centers. With that background, I'll now hand over to our CFO, Ajay Singh, who will walk you through our financial performance in the next two slides.

Over to you, Ajay.

Thank you, Venu, and very good afternoon, everyone. Hope you you are doing well.

Let me run through the financial performance for this quarter as well as the year end. Venu has already touched upon a few parameters, but I will go a little bit deep into that.

Orders, if you see, we have clicked ₹2,422 crore in this particular quarter, which is 10.6% growth Y-o-Y. Revenues from operations were very very good in this quarter.

We had ₹2,754 crore, which was 46% growth compared to the Y-o-Y. Profit before exceptional item is ₹443 crore, that is 16.1% compared to earlier Y-o-Y 13.1%.

PAT, if you see, PAT grew by roughly 80%, ₹330.5 crore. Then the margin, we closed at 12% PAT margin.

Operational EBITDA for this particular quarter was ₹452 crore, which is 16.4%. Overall, I will say, in my view, this quarter was good for us.

Again, if you compare from the sequential quarter also, if you see, revenues grew by 32%, and PBT also grew by 10 10%, PBT after exceptional items grew by 27%, PAT grew by 26%, and also operational EBITDA grew by 33.7%. The margin in this particular quarter was majorly contributed from the very good revenues that we got and also through the operating discipline that we could get translated in this particular quarter.

If I see year-on-year, year-on-year, we had order booking of ₹18,456 crore, which is, we are able to maintain this, a good order book, 1.6%, compared to the last year. Revenues, we, crossed ₹8,000 crore, ₹8,147 crore, which is roughly 27.6% growth compared to the previous year.

PBT before exceptional items, 16.9%, and PBT after exceptional items is 16.2% compared to 8% in the last year. PAT grew basically, more than 150%.

PAT is we clicked ₹987 crore, that is 12.1% vis-à-vis 6% in the last year. Operational EBITDA, if you see, ₹1,252 crore, that is 15.4% compared to 9.3% what we achieved in the last year.

If I dwell a little bit more in details, if you come to the next slide, where, I will talk about more in details. If you see in the particular quarter, a little bit on the cost structure, if you see, our basically the personnel expenses for this particular quarter were 6.3%.

Other expenses, we were able to pull down 14.3%. In this particular quarter, we had an exchange loss of ₹31.5 crore.

This is a unrealized loss, notional loss for us. Depreciation, 1%; finance cost, negligible.

With this, we were able to close this particular quarter with 16.1% PBT, and profit after tax was 12%. Similarly, if I see for the year end overall, year end also, as I discussed, we clicked a revenue of ₹8,147 crore.

If you see, we were able to improve on the gross margins compared to the last year by minimum 2%. Personnel expenses, we closed by 7.9%.

Other expenses again, last year, it was 20%; this year, we closed at 16.9%. All other, expenses are under control.

That is how, if you see, we were able to close this particular year with profit before tax of 16.2% compared to the last year 8.1%, and also profit after tax basically reached to 12.1% compared to 6%. Overall, a very good, development on the profitability vis-a-vis when I compare with the last year.

With this, I hand over to Venu.

Okay. Thank you, Ajay, and I come to the last slide.

As you all know, this is a famous slide for me. As we close the financial year, we are pleased with the progress we have delivered, especially against the backdrop of an evolving geopolitical environment.

Our focus continues to be on two clear priorities: sustaining our growth momentum and improving efficiency across all areas of our operations. We remain proud of our leadership in core segments such as utilities, HVDC, industries, data centers, etc., while actively expanding into high-growth areas, energy storage, where we see strong and sustainable demand trends.

At the same time, we are sharpening our strategy to capture opportunities across services, exports, and digital innovation. Strengthening the service business in India remains a key pillar for us as it plays a critical role in ensuring continuity and resilience of energy systems.

We're also driving productivity and operational excellence with a strong emphasis on quality and scalability. In parallel, we are focused on executing our strong order backlog efficiently to support revenue growth and optimize capital deployment.

We kick-started AI acceleration with AI Nexus program, harnessing data, analytics, and AI to drive smarter decisions and faster and better outcome. On the function standpoint, safety continues to be our non-negotiable and our license to operate, be deeply embedded in our culture, and we remain committed to maintaining a robust safety for environment across all of our locations.

Looking ahead, we will continue to invest in our capabilities through people, technology, and capacity expansions to support sustainable growth. We are confident of creating long-term value while contributing to a more resilient and sustainable energy future.

Ladies and gentlemen, with that, now the floor is open for the questions. Thank you very much.

Hi, Venu. Congratulations on a great quarter, sir.

My first question is on exports. We have seen very robust order inflow from the exports, if I do the numbers for some adjustments for HVDC, about ₹3,000 crore-plus for this year.

Just wanted to understand, without any related-party major orders in this year, how are we able to get these orders? How are we generating inquiries there?

Do we compete with the parent entities in these geographies? How does the allocation comes?

How do you get the inquiries, because it's widespread across US, Europe, and APAC? Just wanted some more color on this.

Yeah. Thank you, Parikshit.

Thank you for your question. That is very interesting.

We have been consistently saying that our export strategy is a three-pronged strategy. The number one is we have certain allocated markets.

In allocated markets, we develop the allocated markets on a long-term basis together with the local sales and marketing organizations, and we start selling the products in that. At no point in time no two Hitachi Energy companies will compete in any markets.

We develop the market on a long-term basis. That's the first strategy.

The second one is we do manufacture certain products only in India in the whole Hitachi Energy ecosystem. That's what we call as a global feeder factory.

If I give an example of the 66 kV circuit breakers, and then our Combiflex relays, if I just give you a couple of examples on that. Products, we manufacture here, we sell it across the world, some directly to customers, sometimes through our Hitachi Energy offices, so that will become a related party.

Third one is we manufacture, as part of that, is a components which is required for the full products, what we call as a feeder factories. These feeder factory manufactured components, we sell it to other Hitachi Energy factories around the world.

It could be US, it could be Germany, it could be Sweden and Switzerland, etc., in that. These all the components, and we sell it over the things.

Combination of these three things will add to our exports thing, Parikshit.

Okay. Sir, my second question is on the HVDC mix.

We have seen some softness in the margins as a whole. We are somewhere around 14%, 15% EBITDA, but our peers are now in the range of 25%-plus.

Our GPM is also low, and other expenses is high because of royalty, we have high royalty there. Just wanted to understand was HVDC a significant portion of this year's revenue?

Since you can quantify across all the three HVDCs, you had Marines, you had Adani, you had Power Grid, and the Mumbai entry. Was these a significant part of your order book?

Given that now 2/3 of our order book is HVDC, is there any scope for final margins to improve from here on?

No, I think as I said, the HVDC is is is, in our view, is only margin accretive. It was not very substantial in this in this quarter if I in this year, I mean.

If you take the whole of this year, our HVDC revenues out of ₹8,000 crore is around ₹1,100 crore or something like that, Ajay?

Roughly, you can say 15%.

That's ₹1,100, ₹1,200 crore is that. As I said, our focus has been our base business, our service business, our export business, and in addition to other things.

HVDC is one of our levers, and that's what we are doing in that.

Okay. Sir, just a last question, sir, on this order breakup for this quarter.

Exports has been very high, just wanted to check the services, which has also been very high in this quarter. Is the service order from India HVDC upgrade, or it was a global order, and is it a part of the export order book?

No, the service upgrade is from India. It is for our customer in MSCTCL, is a Chandrapur upgrade of control and protection.

Because

adjusted for that, the base orders look very weak for this year as a whole. If I remove services and the export, the base ordering looks to be very weak for FY '26.

In fact, there could be maybe a decline Y-o-Y. Just a commentary on the base ordering?

No. We have seen our base orders also has a strong growth in the base orders for the whole of financial year.

Sure. Thank you, and wish you all the best.

Thank you.

Good afternoon, and thanks for the opportunity. Congratulations on a very excellent quarter and a very, very good year.

My first question is, sir, on the domestic order inflow ex-HVDC or let's say domestic order inflow plus exports ex-HVDC. It seems that we are at 90 billion last year, 90 billion this year, right?

How to see this developing for FY '27? How is the inquiry pipeline ex-HVDC in domestic market, especially?

I think thank you very much. As you know that we don't give any forward-looking numbers going forward, but let me give a little bit of color to that so that you understand that.

As I said, HVDC is only one of our levers, not the only one. You leave HVDC out, but what we see our pipeline is very strong in the renewable.

Pipeline is very strong in the data center, it's really, really good. Then pipeline is also equally strong on our transmission other projects in that.

Because it's a kind of intermittencies is there, but it's coming up in that. Overall, if you talk about the entire pipeline, leave HVDC, I think and our pipeline for the transformers for various segments is also very, very strong in that.

If you add all of those things, I think pipeline compared to the year ago, compared to the quarter ago, is very good.

Understood. My second question on the new transformer capacity which you announced, does it mean that we produce HVDC transformers internally?

No, what do you mean by internally means?

In India at the two HVDC packages, we have tied up with BHEL for supplying the transformers. Does it mean that as this capacity is up, we will take the entire projects as Yeah.

Whatever the projects we have won and those commitment, they'll stay there. There is no change in those particular existing orders.

Considering the new capacity is required, comes from new demand, and we are setting up that. We have seen complete 360 view before putting up this capacity, and we believe that we have a very strong business case for this kind of thing.

In this new facility, we not only manufacture the large power transformers, we also manufacture the various converter transformer, whether it is for VSC technology, whether it is for LCC technology or etc. in that.

Also some of the large power transformers required for the data centers.

Understood. Last question from the

Good afternoon. Thanks for the opportunity.

My sincere compliments on creating a investor relation cell and welcome to Priyanka in the Hitachi Energy India family. My two questions.

The first one is the gross margins contracted on a sequential quarter-on-quarter basis by a significant amount. What was the mix change or factors that drove this outcome?

The second question is that overall your order inflows for the fiscal grew by 1.6%, but excluding HVDC orders from the base for both the years, the non-HVDC order inflow, at least the domestic non-HVDC order inflow was sedate in FY '26 over FY '25. What led to this outcome, and what is the outlook going forward?

Thank you.

Yeah. Maybe on the gross margins, I'll ask Ajay, our CFO, to speak on that.

Thank you for the question. If you see the gross margin, you are talking about sequential quarter, it is only because of the product mix.

That is where you see a contraction. If you see overall basis at the end of the year, we have improved on the gross margin by two basis points.

If you see around last year, our gross margins were around 38%, but this year, we closed the year with the 40%. As we are discussing, we are working on the margin accretion piece, and only because of the product mix is where sometimes in the sequential quarters, we see some change.

Sure.

Sumit, what was your second questions on the orders?

The non-HVDC order inflow in FY '26 versus the comparable number for FY '25, if I exclude exports, there seems to be sort of some weakness in the domestic non-HVDC order inflow. Given the outlook is so strong around multiple growth drivers, what is actually the underlying dynamics here?

I think when we looked into that, it is not the case with us. We need to also understand that some of the capacities which are required for that probably will filled in with the HVDC portfolio.

That's also the reason why some orders which are required at the same time may not be possible for us to do that. Otherwise, even if you remove the non-HVDC order, there has been a growth in the domestic as well for us.

Okay. Just one follow-up on this.

Your ₹20 billion capex, what kind of physical capacity for power transformers in GVA terms is this going to entail?

We are going to create almost anywhere between 30 GVA to 40 GVA, exactly close to our existing factory.

Thank you so much. Wish you all the best.

Thank you.

Thanks for the opportunity. Just clarification on 30, 40 GVA.

You said after adding the capacity, this will become 30, 40 GVA, or

This is additional capacity.

Additional. This will be 30

30 GVA. Depending upon the, product mix can go to 40, but baseline would be in the range of 30 GVA.

Which is kind of doubling the capacity, yeah? Yeah.

Yeah.

Sir, a question on the minimum local content. The two projects which we already have, just wanted to understand there was recent notifications from the government with respect to minimum local content.

The status on the two projects, how much is the MLC there? Is your capex driven by also the localization drive for probably for the upcoming two, three years?

There is a minimum 30%, and then this will go up over the next five to seven years in terms of localization requirement for each project. Second, will this also lead to reduction in royalty, because you'll be localizing more, just wanted to understand on these aspects?

Thank you very much. As far as our local content is concerned, we are far ahead of the requirements set out by the thing.

Even the recent government circular, by far we're exceeding that. We have been consistently saying that over a period of time, we have increased our local content.

Our new capacity is nothing to do with the local requirements of that. The new capacity is basically is based on the demand coming in from renewable, transmission, data centers in a big way in that.

Thank you.

When it comes to the royalty, your question is that as I said, we manufacture locally, but we continue to get technology from our principals, right? I've been saying that we need to pay royalty because we will come out of new technologies, new products, etc., in that.

Some of you are maybe attending our today's evening investors meet. We would like to explain to you what are the new products technology we are launching for some of the new segments growth drivers.

For example, data centers, energy storage, and those technologies we are able to source from our parent company. We need that royalty to ensure that the technology is available at the same time it is available around the world.

I'd like to top up what Venu are telling. Locally, if you see, we're not spending anything on the R&D.

Our R&D spend is all managed centrally, so that is how we will need the technology for our products. Thank you.

Thank you, sir. Thanks.

Thank you so much. I think so we look forward to your evening presentation.

Primarily, can you talk about any big gaps that you currently have in your portfolio that you would want to address with this ₹2,000 crore of capex?

No, the ₹2,000 crore is not about the gaps. For example, what the major of ₹2,000 crore is going into our existing product.

One is that we're going to set up a new greenfield large power transformer. We are already manufacturing those things in our another facility in Vadodara, Maneja.

This is additional capacity because we need to produce more number of transformers in the same time, and that's what is the thing. Similarly, we are also setting up a two additional lines in our Bangalore factory for a power quality, and this is up to six lines we have, we are now adding a seventh and eighth line because we see a lot of demand coming in for the power quality products.

It's not a any of the product gaps. It is more of doing what we are doing it.

Understood. That's very helpful.

How should one think about phasing of this capacity over next two, three years?

Our view that that's what I said, we will talk about more in the evening. What we are talking about is that the demand required for the electrification, right?

The more and more sectors are getting electrification. Electrification means you need a more transmission, you need a more generation, and for that, you need a more transformer.

We have looked into quite a longer period, and we believe that it's not a one or two year, three years story we're talking about, we are talking about a multiyear growth story. It's a structurally we need to have.

It's not a anymore a spikes that it is coming up and down, but we need the structurally for a couple of long years the growth of these demand for these products and solutions is going to be there in our view. That's why we are investing it.

Understood. No, I meant your capacity as in this ₹4,000 crore, when should we expect different phases of capitalization?

No,

as we speak, out of the ₹4,000 crore, out of that ₹2,000 crore we announced in October 2024, and many of those projects are, as we speak, they are on the ground. They are taking anywhere between three to four years to complete that.

This additional ₹2,000 crore which we announced, and we are doing the groundbreaking ceremony on 12th of June. This is a accelerated manufacturing thing as I said.

We going to manufacture the transformer out of this new facility by last quarter of the calendar year of 2028.

2028. That's very helpful.

Thank you so much, and all the best. Thank you.

Thank you.

Good afternoon, sir, and thank you for the opportunity. Sir, as you've mentioned on this call as well that the focus areas and the growth triggers seem to be coming more from the renewables and the data center side over and above, let's say, HVDC and exports.

Just wanted to get a understanding of, let's say, how much of the renewables and the data center piece would be, let's say, part of current revenues and order book? How do you see the growth trajectory going ahead?

I think all of them are part of our order book. By far, the transmission is highest in our order book, followed by the renewable and then industry, service, exports.

Data centers is coming up in India. As India is have a just a less than 2 gigawatt of data center in India.

This is going to be a multifold in going forward in the next four, five years, we're talking about in that. That is, even though it's a small base, but the rate of growth or growth percentage is much higher in those things.

The next one is the energy storage, the battery energy storage, especially. You're talking about almost 80 gigawatt of battery storage for the next five, six years in that, as you can see from the CEA report.

That needs a lot of technologies, and we're going to also look at those segments in that.

Thank you. Understood.

Just as a follow-up, would most of these products that go into, let's say, the data center and the battery energy piece, are these products that you are already manufacturing in India, these solutions already exist within the Indian subsidiary, or these would be products that need to be imported from the parent and then supplied here? Yeah.

Some of the products are already we are manufacturing, and we're going to expand our product basket. Some of the products is already available in our parent company.

We're going to bring the technology and localize those things. As it's very important to meet up the price point required by our customers in India.

If you import from there, we will not able to manage the sustainable growth in that. We need to do that, and that's what we are looking into that.

It's a combination of all of that.

Understood, sir. Understood.

Thank you so much.

Sure, sir. Thank you so much for taking my question, and congrats on excellent set of results.

Sir, my first question just pertains to the

Can you please come close to the mic, please? It's very feeble.

Hello. Can you hear me now, sir?

Sure.

Hello?

now. Please go ahead.

That's clear, yeah. Sure.

Sir, my first question just wanted the entire year number FY '26, the exports order intake and as well as the exports revenue entire year, if possible.

I think, yeah, Ajay, you like to

Yeah. Export revenue, if you see year year end, is around 25%, you can take.

Order orders also will be basically in the similar line. Currently, to look a little bit lower because we have booked the large domestic orders, but our average, export is around 25% to 30%.

Yeah. Whenever we are talking about the percentage, please remember, we always take out the large lump like HVDC orders.

When you're talking about that, it is excluding of that. Sure,

sure, sir. Would it be possible to give an exact number, sir, for this?

No, we will not able to share exact numbers in that. We have been sharing as a ballpark percentage.

Okay. Sure, sure.

Sure. Sir, my next question is pertains to the near-term HVDC pipeline for the next two years.

Just wanted some color on the pipeline, how is it, more of LCC projects or VSC projects coming on stream? Also, one linked question, since you have already won two mega 6 gigawatt projects already, do we have the capacity to take on more for the next couple of years?

Yeah.

No, I think thank you very much. I think pipeline is, in our view, is very robust.

One has already come up for bidding for the TBCB customers, and we are working on that. Similarly, there are many other projects, what I understand, is also is in the pipeline.

At least in the next two years, we're talking about anywhere between three projects if not four. Our capacity, we consistent and this is a combination of both LCC and VSC.

For us, it doesn't matter LCC, VSC is absolutely is fine because we are by far the leadership position in both LCC and VSC technology globally in that. We just commissioned Adani Mumbai 1,000 megawatt is a VSC technology.

Your next question was on whether do we have a capacity or not in that. We have also consistently saying that we have been building the capacities.

We don't have any limitation as of now to take more HVDC projects now and the next year or year after. We are creating the capacities.

As you see, we have been saying this from 2022 when there was no pipeline was there, we started our HVDC and control protection factory in Chennai. We are also set up additional now transformer factory where we are going to manufacture the converter transformer in anticipation of the demand, not only HVDC, but also including HVDC.

Sure. Thanks for that, sir.

Just one question, I wanted to

Sure. Okay.

Hi, sir. Thanks for the opportunity.

Just had a question on your exports. I understand your three-prong strategy.

Maybe if you could give some qualitative commentary on what kind of markets where you're getting this export demand, and is it largely third-party, or is it more driven by orders from the parent? Specifically, which segments?

Is it data centers? Are you catering to the data center market in US or other parts globally?

If you could just give some color on that.

Thank you. Thank you.

As I said, some of the allocated markets where we have export strategy, there we develop those markets in a long-term, sustainable basis. It could be Indian subcontinent, Bangladesh, Sri Lanka, Nepal, Bhutan.

It's also some of the Southeast Asian countries, and so on and so forth. There, we sell our products directly to the third-party customers.

For example, our GIS, etc., we sell not only in the Southeast Asian countries, but also some of the European customers in that. In some cases, we said we have a global feeder factories, there again, we have a combination of that.

We sell to sometimes directly to customers, sometimes to our organizations in that. That comes from our not a parent, but our Hitachi Energy offices around the world.

The third one is where we have the feeder factory where we make the components in India. It's more of a kind of contract manufacturing for our Hitachi Energy factories around the world.

That will be through our parent organizations in that. That's how we look at that.

Understood, sir. Secondly, you mentioned that there was a temporary industry slowdown in the fourth quarter that you've navigated.

You during your commentary also highlighted some maybe delays in some transmission projects, and that's why FY '26, we saw a small dip in the growth in transmission orders. If you could comment a little bit on what are these delays, how long do you anticipate them to go on for, when would it get resolved, or is it already behind us now?

I think, in my view, it's behind us. On the transmission projects, it is behind us.

It's now coming up the pipeline. Maybe the industrial capex, when I said it's not a consistent with all the things, there is a good momentum on the capex on some of the steel and other industries, but across the thing.

If you really look at where the investments are coming in, huge in the transmission, renewable for sure, and also some of the fossil power plants are also coming up, and the data center and semiconductor industry, battery storage industry, they are all really firing on that. We also see some expansions in the automobile industry, some of those things.

Got it, sir. Thank you so much.

Yeah.

Hi, Venu. Just continuing on the export bit.

You did say that you are catering to the SAARC region and Southeast Asia. All of this is necessarily with you all only?

Is that how one can interpret this?

Sorry, all of this is necessarily is

necessarily catered by Hitachi India itself?

Yeah. Some of the allocated markets, it will be catered by Hitachi Energy India only.

That is SAARC is totally allocated market, and you will compete with other Hitachi entities for Southeast Asia?

Yeah. I don't know how you define.

As I said, Indian subcontinent is what we define, that is Bangladesh, Sri Lanka, Nepal, Bhutan, and Southeast Asian countries. In Southeast Asian countries, India's subcontinent is the entire portfolio.

In Southeast Asian countries, is part of the portfolio.

Got it. Second thing is, you did talk about how India is catering to being a feeder factory for some of the products, and certain products are completely only manufactured locally.

On an average, every year, how much of these products are there? How much of these things make up your revenue, these feeder factory and certain products which are manufactured only in India?

Because this is going to be a continuous, whether export happens or not, this is something which will continue.

Yeah. I think, since this is a It's more of a contracting to our companies.

It's and it's everything is a pass-through to our company, it's a low risk and stable margins kind of thing in that. It is growing.

It is right now, if you take our whole of exports, it's in the range of 30, 30 30, 30% or something like that.

That's interesting. The last question that I have is with respect to the timeline of supply of transformers.

For the export market, what is the kind of timeline that you are able to supply a transformer, and whether it is different for a 765 or 400 kV?

As I said, our whole of transformer because we have so much of demand from a domestic thing, our focus is continue to maintain our domestic thing in that. Our pipeline is quite robust, quite big in that.

One of the reasons why we are increasing our capacity by adding a new factory is also not only to cater to the domestic demand, but also cater to the new segments arising out of these things like data centers, etc., in that.

You are able to deliver a transformer in what, 15 months, 10 months?

It depends. It's not a ballpark thing, this is evolving.

It's a highly dynamic. That's why we always tell our customers to look at and ordering as early as they can so that we can plan better in that.

Some we can deliver in 15 months, some we could do in 12 months, that's not the issue. Issue is what kind of capacities customers are looking at it so that we can block those capacities.

Fine. Thank you very much.

Sorry, am I audible?

Touch that. Am I audible now?

Yeah.

Okay. My first question, how should we think about this data center opportunity attributable to Hitachi particularly with respect to domestic and global competitors over the next five years?

Sorry.

Sorry, it was not very clear. How big is the opportunity in data center

next five years?

Yeah. Next five years.

How should we think about the data center opportunity for Hitachi over the next five years? Now

look at the data center market in India, and that's where we are primarily catering to, is now in India is a less than 2 gigawatt of data center capacity is existing, and the projections is anywhere between 13 to 18 gigawatt depending upon which data you'll take. What we're talking about anywhere between six to nine times of the capacities in that.

Every data center, hyperscaler data center, every data center, 15% of data center capex is Hitachi Energy addressable market. Look at that addressable market is expanding by anywhere six to eight times depending upon the data from the various officials, etc., in that.

It's quite substantial.

Okay. Just to follow up, you mentioned 13 to 18 gigawatt, and you mentioned a certain capex.

For Hitachi, what percentage of this total capex is attributable?

No, we don't take that. For us, every data center is a 15% is our addressable data center, addressable market for us.

Okay. Understood then.

My second question. In the current inflationary commodity price environment, how effective has the price escalation clauses been in protecting the margins of your HVDC and transformer contracts?

Yeah. Thank you very much.

I think this is very interesting question. I was expecting this question.

I think you all know that the geopolitical challenges being faced across India and also many other geographies, and which is also having a elevated inflation, elevated metal prices, etc. On top of that, elevated transport charges because of the Strait of Hormuz getting affected, etc., in that.

We are navigating it. It's not easy.

It's challenging, but I would say most of our portfolio, we have our commodity prices is a pass-through. We have a price variation clauses built in in the contracts, and we very openly and transparently, we do that.

Some other things where we cannot pass on, those things like inflated freight, etc., we are just looking at how to manage it, and then we have said several initiatives to ensure that we mitigate many of those risks in that. We are very looking actively on that.

Thank you. Thank you.

Thank you very much, and thank you very much, ladies and gentlemen, for listening to us. I know that some of you still have a question, please reach out to Priyanka, and we will happy to connect with you offline or online, and to provide all the necessary things in there.

Thank you for showing interest in our thing. We are looking at very exciting times for Hitachi Energy, and the electrification era has arrived, and everything is getting electrified, whether it is transport sector, industry sector, data center, energy storage, and also the industrial and the domestic.

We are super excited about our role and supporting our customers, our industries, and also working very closely with all of you. Thank you very much, and looking forward to.

Thank you. Have a nice