Execution slowdown between HVDC projects
With the Adani HVDC project nearing completion and new HVDC orders yet to start, there could be a temporary revenue slowdown in coming quarters.
POWERINDIA / bear-case history
Track the concerns that keep returning.
Hitachi Energy India · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
medium
Commodity price inflation impact on margins
Rising commodity prices could pressure margins, though 70%+ of the order book has price escalation clauses.
Chinese transformer competition
Potential Chinese imports or local manufacturing could increase competition, but management is confident given level playing field.
Inflationary and supply chain pressures
Geopolitical tensions in the Middle East have elevated metal prices and transport costs; while some contracts have pass-through clauses, not all costs can be passed on, potentially squeezing margins.
Weakness in domestic non-HVDC order inflow
Analysts noted that excluding HVDC and exports, domestic order inflow appeared weak in FY26, raising concerns about underlying demand. Management attributed this to capacity constraints and lumpiness.
Dependence on parent for technology and royalty payments
High royalty payments to the parent company for technology access (with no local R&D spend) could pressure margins, especially if localization requirements increase.