Siemens Energy – Muted financial performance; strong order booking
Siemens Energy Ltd. delivered a muted quarter with revenue/Ebitda/adjusted profit after tax of Rs 17.8/3.4/2.6 billion, miss on our estimates by -12.1/- 21.4/-19.4%. Revenue and Ebitda were impacted by weaker execution which we believe will pick up from FY26 as T&D order book is strong and once there is significant execution, operating leverage will kick in on better margin mix. Siemens Energy received new orders worth Rs 32.9 billion (+94% YoY) on the back of strong demand both in domestic as well as export market, which led to an order intake of INR 107.6bn, as of 9M FY25.
Siemens Energy continues to benefit from sustained traction in the power transmission segment, backed by rising demand for grid infrastructure. Moreover, Siemens Energy announced an Rs 2.8 billion phased capex plan to augment high-voltage switchgear manufacturing at its Aurangabad facility.
Given the strong cash flow, robust order book, limited competitive intensity, and export opportunities, we maintain Buy on Siemens Energy with a revised target price of Rs 3,569/share (60x Sep-27E EPS).
