Hitachi Energy and 2 Other Stocks Keep On Your Radar, ROCE More Than 23%

India’s power and industrial equipment sector is experiencing strong growth, driven by increasing investment in power grids, renewable energy, and large data center projects. Companies in this space are not only increasing their sales but also improving profit margins and building large order pipelines, ensuring consistent revenue for the next few years. This trend is clearly visible in some large companies, which are demonstrating continued financial strength and long-term growth potential.

The entire industry is benefiting from significant spending on infrastructure, particularly power transmission and clean energy. Many companies are experiencing revenue growth of over 25% year-on-year, along with improved operating efficiency. Higher demand and improved pricing power have also led to improved profit margins, allowing companies to convert more revenue into profits.

Hitachi Energy India reported strong results for FY26, with quarterly revenue reaching Rs.2,754 crore, a sharp increase of 46.2% compared to the previous year. Operating profit increased significantly, with EBITDA rising 92% to Rs.452 crore, while margins expanded from 9.3% to 16.4%. The company’s annual revenue was Rs.8,148 crore, a 27.6% increase, and net profit more than doubled to Rs.988 crore. Its order backlog increased to Rs.29,555 crore, providing strong future earnings potential.

CG Power reported its highest annual figures ever, with total revenue of Rs.12,418 crore, a 25% increase. Profit before exceptional items increased 27% to Rs.1,232 crore. The company’s Power Systems division stood out, with quarterly sales increasing 50% to ₹1,487 crore and margins improving to 23.8%. Its total order backlog reached ₹17,107 crore, supported by large domestic and international contracts, including projects worth ₹900 crore and ₹641 crore.

ABB India continued its strong performance in FY26, with quarterly sales of approximately ₹3,184 crore. Operating profit remained consistent at ₹408 crore, with a margin of 13%. Although net profit reached ₹1,784 crore, this included one-time income of ₹1,541 crore, underscoring the strength of its core business. For the full year, the company generated revenue of ₹13,093 crore and maintained strong operational stability across all its business segments.

A key strength of these companies is their growing order books, running into thousands of crores. This large backlog ensures consistent revenue for the next two to three years. Strong demand from sectors such as data centers, rail transport, and renewable energy is helping companies secure long-term contracts.

These companies are not only growing rapidly but also generating strong returns, with returns on capital employed exceeding 20% ​​to 29% in many cases. Their ability to maintain high margins, execute large projects, and manage costs sets them apart from others in the capital goods sector, making them key players in India’s ongoing industrial and energy transition.