Nuvama Institutional Equities has reiterated its Buy rating on Hitachi Energy India and raised the target price to ₹26,400following a management interaction.

The brokerage highlighted that the transmission and distribution (T&D) capex cycle is likely to remain structurally strong well beyond FY32, supported by healthy domestic and export demand visibility over the next five to six years.

Management indicated that current EBITDA margins are sustainable, with upside potential from operating leverage and localisation benefits over FY27–28. Additional growth drivers include data centres — accounting for roughly 15% wallet share — railways demand of over 15–18 million, and a growing HVDC pipeline.

Nuvama sees improved conviction on margin upside potential and believes another HVDC order over the next 12–18 months could drive further EPS accretion from FY29.

Disclaimer: The views expressed above are those of Nuvama Institutional Equities and do not represent the views of Business Upturn. This article is for informational purposes only and does not constitute investment advice.