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Informist, Wednesday, Nov. 5, 2025

By Rajesh Gajra

NEW DELHI - Siemens Ltd. is expected to post a slight decline in its consolidated net profit for the September quarter, mainly due to moderate growth in revenue from operations, lower non-operating income and higher non-operating costs, according to analysts. The top line growth is seen slightly above 10%, helped by strong traction in the company's smart infrastructure and mobility segments. An expected weak performance in its digital industries segment will weigh on the overall earnings of the company.

Among the four major segments Siemens operates in, smart infrastructure had accounted for 53% of the total consolidated revenue of INR 123.5 billion in the nine months ended Jun. 30. The company's mobility segment had accounted for 18% of the total revenue, while digital industries segment had a revenue share of 22%, and the low voltage motors segment accounted for 6% of the total revenue. Siemens had in August announced an alteration in its financial year to Apr-Mar from Oct-Sept, with its current financial year being extended to Mar. 31.

Siemens is expected to report a small on-year decline and a 22% on-quarter increase in its consolidated net profit for the September quarter at INR 5.2 billion, according to the average of the estimates from seven broking firms. The estimates for net profit range from a low of INR 4.6 billion by YES Securities (India) to a high of INR 6.1 billion by Nuvama Wealth Management.

The company's consolidated revenue for the reporting quarter is seen increasing 10% on year and 13% on quarter to INR 49.2 billion, with the lowest revenue estimate at INR 45.5 billion by Nomura Equity Research and the highest at INR 52.5 billion by Elara Securities (India).

Siemens is expected to report revenue growth of around 17% on year in the September quarter, "driven by strong execution across smart infra (infrastructure) and mobility segments," brokerage Prabhudas Lilladher said in a report. Motilal Oswal Financial Services expects traction in the smart infrastructure and digital industries segments for Siemens to drive revenue growth of 8% on year. "We expect revenue to grow 2% y-y (year on year) driven by marginally higher execution," Nomura Equity Research said.

Siemens may have faced challenges in order inflows in the September quarter, according to analysts. "For short-cycle orders, based on our channel checks, we expect ordering momentum to remain moderate," Nomura said. The brokerage expects Siemens to report 15% growth on year in order inflows at INR 50 billion. Nuvama said it remained cautious on Siemens and a few other capital goods companies due to "tepid private capex growth" and "limited margin visibility."

The company is expected to post earnings before interest, tax, depreciation, and amortisation of INR 6.1 billion for the September quarter, according to the brokerages' estimates. "We expect EBITDA margin to expand ~120bp (around 120 basis points), on account of improvement in mobility, digital and low-voltage motors segment," brokerage Motilal Oswal said. The company's EBITDA margin is likely to expand by around 53 basis points on year "driven by favorable product mix," according to brokerage Prabhudas Lilladher.

Siemens has not yet announced when it will detail its September quarter earnings. Investors will watch for demand trajectory of the company's digital industries segment, and the "execution of the locomotive order", according to brokerage Motilal Oswal. They will also watch for the company's "private capex pipeline, (and) margin trajectory," the brokerage said.

The pace of order execution will be keenly watched, brokerage Prabhudas Lilladher said. Nomura said the key things to watch out for will be the growth recovery in Siemens' digital industries segment and an update on execution of large orders.

On Tuesday, shares of Siemens closed at INR 3,119.60 on the National Stock Exchange. The stock is up marginally since the company's June quarter earnings announcement. Of the eight brokerage reports on the company available with Informist, three have a 'buy' call on the stock at an average target price of INR 3,645, two have a 'hold' recommendation, and three have a 'sell' call at an average target price of INR 2,793.

In the trailing quarter, Siemens had reported a fall of 30% on year and 45% on quarter to INR 3.7 billion despite its revenue from operations increasing 16% on year and 1.6% sequentially to INR 38.7 billion.

Following are the September quarter consolidated earnings estimates for Siemens from seven broking firms in the descending order of estimate of net profit:

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Edited by Avishek Dutta

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