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.
Hitachi Energy India · Material risks, their source context, and severity in the latest available quarter.
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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.
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.
High royalty payments to the parent company for technology access (with no local R&D spend) could pressure margins, especially if localization requirements increase.