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Informist, Thursday, Aug. 7, 2025

By Avishek Rakshit

KOLKATA – Despite good order inflow and expectations of timely execution of the existing order book, Siemens Ltd. is likely to report a muted performance for the June quarter.

The Indian arm of Germany-based Siemens AG is expected to post a net profit of INR 4.4 billion and sales of around INR 41.8 billion for the June quarter, according to the average of estimates from eight brokerages. In the same quarter of 2024-25 (Apr-Mar), the company had reported a net profit of around INR 5.3 billion and revenue of INR 47.7 billion, implying that the net profit may fall 16.9% on year and the revenue may decline 12.3% on year in the latest quarter.

On a trailing basis, the net profit may fall 34.6% but the revenue may increase 9.8%. In Jan-Mar, the company had reported a net profit of INR 6.7 billion and sales of INR 38.1 billion. The company, which follows an Oct-Sept financial year, will declare its June quarter results Friday.

Motilal Oswal Financial Services Ltd. has the highest net profit estimate of INR 4.8 billion and YES Securities (India) Ltd. has the lowest estimate at a little over INR 4 billion. Elara Securities (India) Pvt. Ltd. has the highest revenue estimate at INR 43.8 billion and HDFC Securities Ltd. has the lowest estimate at INR 39.2 billion.

Brokerage Nomura Equity Research expect a 10% top line growth for the company on account of order inflows in the mobility segment and execution of the existing orders. Motilal Oswal said that in the June quarter, a consortium led by Siemens won a major order worth INR 41 billion from the National High Speed Rail Corp. Ltd. for the Mumbai-Ahmedabad high-speed rail project.

On Mar. 25, Siemens got approval from the Mumbai bench of the National Company Law Tribunal to demerge its energy business into a new entity, named Siemens Energy India Ltd. The demerger was aimed at separating the two distinct businesses of energy and technology to enable sharper focus on each. The demerged energy business accounted for around 47% of the new orders which Siemens has bagged in the past several months.

Although orders in some sectors like infrastructure and private capital expenditure were slow in the June quarter, industries such as energy saw good tender issuances and project advancements, brokerages said. While Siemens earlier benefited from such projects, it will not benefit in the latest quarter as this business is now under Siemens Energy. Thus, the June quarter results of Siemens will not include the order book or revenue from the energy sector, which has been its primary revenue earner for long.

Brokerages said investments in the renewable power sector are emerging as a big decadal theme alongside defence and power security in the country. High-voltage direct current projects worth INR 1.2 trillion are expected to be awarded over the next two years, which will be equally split between engineering, procurement, and construction companies and equipment players. At the same time, power transmission and distribution continue to witness increased orders for higher capacities, such as the 6-gigawatt order won by the consortium of Bharat Heavy Electricals Ltd. and Hitachi Energy India Ltd. from Adani Energy Solutions Ltd.

Nuvama said timely ordering of large ticket-size manufacturing orders from both domestic and export markets, given the planned capex of INR 1.9 billion to build a state-of-the-art metro train manufacturing facility in Aurangabad across propulsion equipment, signalling, and other equipment, is key to Siemens' long-term growth. At the same time, margin recovery in the digital industries segment remains the other key catalyst for Siemens' growth trajectory, Nuvama added.

Siemens is expected to report an earnings before interest, tax, depreciation, and amortisation of over INR 5 billion in the June quarter, according to the average of estimates from eight brokerages. Kotak Institutional Equities, which has the highest estimate, pegged the EBITDA at INR 5.5 billion and HDFC Securities estimated it to be the lowest at INR 4.6 billion.

On Thursday, shares of Siemens closed at INR 3,117.00, up 1.07% on the National Stock Exchange. The shares are up 6.87% since the company announced its March quarter earnings in May.

Of the eight research reports on the company available with Informist, three have a 'buy' rating on the stock at an average target price of INR 3,667. Two brokerages have a 'hold' rating and three brokerages have a 'sell' rating on the scrip.

Following are the Apr-Jun earnings estimates for Siemens based on reports from eight brokerages in descending order of net profit: 

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee

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