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Siemens Energy gains 3%, hits new high on healthy March quarter results
Shares of Siemens Energy India hit a new high of ₹3,105.95, gaining 3 per cent on the BSE in Tuesday's intra-day trade in an otherwise subdued market after the company reported a healthy earnings for the quarter ended March 2025 (Q2FY25).
In the past two trading days, the stock price of this heavy electrical equipment company has rallied 7 per cent. It has recovered 23 per cent from its 52-week low of ₹2,529 touched on June 24, 2025. The company made its stock market debut on June 19, 2025.
Siemens Energy India is demerged from Siemens focuses on Transmission and Distribution (T&D) as well as small-sized turbines. Siemens group follows September as its year-end. The shareholders of Siemens received 1 share of Siemens Energy India for each 1 share held in Siemens.
Siemens Energy India will provide solutions across the entire energy value chain - from power and heat generation, transmission to storage through a portfolio that includes conventional and renewable energy technology such as gas and steam turbines, hybrid power plants operated with hydrogen as well as power generators and transformers.
Siemens Energy India Q2FY25 result
Siemens Energy India reported better-than-expected analysts estimates. The comparable numbers for the previous period are not available. Revenue growth improved 24 per cent quarter-on-quarter (QoQ) at ₹1,880 crore and earnings before interest, taxes, depreciation and amortisation (EBITDA) margin stood strong at 19.1 per cent for the quarter, driven by strong margins in the power transmission segment. Margins were soft in the power generation segment. EBITDA margin has been continuously improving for the company for the past two quarters even after adjusting one-off items.
Brokerages view on Siemens Energy India
Based on 1HFY25 performance, Motilal Oswal Financial Services (MOFSL) said they raised estimates by 13 per cent/6 per cent/8 per cent for FY25E/FY26E/FY27E to bake in improved execution and margin in the power transmission segment.
The brokerage firm expects Siemens Energy India to continue to benefit from a strong addressable market in T&D as well as its planned capacity expansion in the transmission segment. Accordingly, MOFSL said they estimate a CAGR of 27 per cent/29 per cent in revenue/PAT over FY25-27. The brokerage firm retained its 'BUY' rating on the stock with a revised target price of ₹3,300 (from ₹3,000), based on 60x September 2027E EPS.
Analysts expect Siemens Energy India's Power Transmission segment to grow much faster, as it is well-placed to benefit from planned investments of ₹ 3 trillion in T&D over FY25-30, primarily in HV lines of 400kV and 765kV, given their crucial role in inter-state transmission lines. Siemens is among the few players with a presence in high voltage lines up to 765kV and is, hence, expected to benefit from planned investments.
Going forward, Siemens Energy is placed to benefit from energy transition tailwinds in India and a healthy order book. However, the power generation business margins have declined and will be a drag on the overall company's growth, ICICI Securities said in a note.
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