Earnings Outlook
Siemens Profit After Tax seen down on input cost escalation, soft demand
This story was originally published at 13:14 IST on 8 August 2026
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By Rajesh Gajra
MUMBAI – Siemens Ltd. is expected to report a lower net profit growth on year amid soft volume and a significant rise in input costs for the June quarter. The operating margins are seen subdued due to a soft demand environment and earlier fixed price contracts, making it difficult for the company to pass on cost inflation.
Siemens is a specialist capital goods company that designs, manufactures, and installs electrification and automation systems for industries and infrastructure companies. The company categorises its operations into smart infrastructure, mobility, digital industries, and others.
For the June quarter, Siemens is expected to report a consolidated net profit of INR 3.88 billion, down 8.2% on year and up 9.4% on quarter, according to an average of estimates by 12 brokerages. The highest estimate of net profit is INR 4.56 billion from Prabhudas Lilladher Pvt. Ltd. and the lowest is INR 3.52 billion from 360 ONE Capital Market Pvt. Ltd.
The company's consolidated revenue from operations for the quarter is expected to be INR 46.19 billion, up 6.3% on year and flat on quarter. The highest estimate of revenue is INR 47.96 billion from 360 ONE and the lowest is INR 40.83 billion from PhillipCapital (India) Pvt. Ltd.
Brokerages' views vary with respect to the top-line growth of Siemens for the June quarter. Their estimates adjust for the impact of the closure of Siemens' sale of its low voltage motors and geared motors businesses to Innomotics India Pvt. Ltd.
Motilal Oswal Financial Services Ltd. expects weakness in the company's smart infrastructure and digital industries segments to persist. On other hand, Kotak Securities Ltd. sees the company's top line to grow strongly by around 15% on year on the back of sales growth in the mobility and smart infrastructure segments. Good order backlog execution will support the revenue growth of Siemens for the June quarter, according to brokerage PhillipCapital (India) Pvt. Ltd.
On order inflow momentum for the June quarter, a sequential moderation in short-cycle orders is expected by brokerage Nomura Equity Research. Siemens' order book growth is seen strong by Kotak Securities, particularly "in the mobility segment with a large order booked from Pune metro project."
Surge in commodity prices, leading to escalation of raw material and other input costs, coupled with a soft demand environment and rupee depreciation are seen hitting the operating margins of Siemens for the June quarter. The earnings before interest, depreciation, and tax are seen at INR 4.86 billion, according to an average of estimates by 11 brokerages.
"We continue to see gross margins remaining under pressure... due to inflationary pressures and reduced ability to pass on the full cost increase to customers amidst moderate demand," Nomura said in a report. The brokerage expects a 155-basis-point decline on year in the company's EBITDA margin for the June quarter. Kotak Securities expects a recovery in the company's digital industries segment margin but also expects raw material headwinds to hit the margins for the smart infrastructure segment, and foreign exchange losses to impact mobility margins.
The weakening in the operating margin is seen hurting the bottom line of the company and resulting in an on-year decline. According to brokerage BofA Securities, fixed-price order executions by Siemens "could pressure margins and drive a 3% YoY (year on year) PAT (profit after tax) decline."
Siemens will detail its June quarter earnings Tuesday. Post-earnings announcement, investors will watch out for "order inflow momentum and commentary on pricing along with execution of existing order backlog," according to PhillipCapital. The management's "demand outlook from both the government and private sectors, and export outlook will be keenly monitored," Motilal Oswal Financial said in a report.
Friday, shares of Siemens ended at INR 3,940.10, down 0.3% from closing price Thursday. The shares are up 7.1% from the date the March quarter earnings were announced. Of 11 brokerage reports on the company available with Informist, five have a "buy" call on the stock at an average target price of INR 4,062, while six have a "hold" recommendation.
Following are the June quarter earnings estimates for Siemens from 12 brokerages in descending order of estimate of net profit, in INR million:
| Brokerage | Net Sales | Net Profit | EBITDA |
| Prabhudas Lilladher Pvt Ltd | 46,119 | 4,561 | 5,488 |
| HDFC Securities Ltd | 46,300 | 4,200 | 5,200 |
| Bank of America global research | 47,780 | 4,098 | 5,257 |
| Nomura Equity Research | 47,647 | 3,977 | 5,017 |
| Motilal Oswal Financial Services Ltd | 46,320 | 3,965 | 4,627 |
| Kotak Securities Ltd | 47,041 | 3,848 | 4,800 |
| JM Financial Institutional Securities Pvt Ltd | 45,467 | 3,768 | 4,498 |
| YES Securities (India) Ltd | 46,114 | 3,768 | 5,076 |
| PhillipCapital (India) Pvt Ltd | 40,825 | 3,690 | 4,409 |
| Elara Securities (India) Pvt Ltd | 45,700 | 3,620 | 4,640 |
| Nuvama Wealth Management Ltd | 46,979 | 3,580 | 4,463 |
| 360 ONE Capital Market Pvt Ltd | 47,963 | 3,524 | --- |
| Average | 46,188 | 3,883 | 4,861 |
End
Edited by Himanshi Gupta
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