SIEMENS - Siemens

📊 NSE: SIEMENS 🏢 Electric Equipment 📅 Last Updated: 12/14/2025 13:21

💰 Financial Performance

Revenue Growth by Segment

Overall revenue grew 8.0% YoY to INR 17,360 Cr in FY25. Over the FY21-25 period, Mobility revenue grew 3.6x, Smart Infrastructure grew 2.0x, and Digital Industries grew 1.9x.

Geographic Revenue Split

Not disclosed in available documents, though the company operates as the flagship listed entity of Siemens AG in India with a focus on domestic infrastructure and railway projects.

Profitability Margins

EBIT margin declined from 11.7% in FY24 to 10.5% in FY25, a contraction of 114 basis points. Adjusted PBT margin was impacted by exceptional items, including a INR 290 Cr gain on property sale in FY24 vs INR 10 Cr in FY25.

EBITDA Margin

Operational EBIT grew 2.9x between FY21 and FY25. However, FY25 EBIT of INR 1,830 Cr represented a 2.5% YoY decrease from INR 1,880 Cr in FY24 due to normalization in the Digital Industries cycle.

Capital Expenditure

Not disclosed in absolute INR Cr for future periods, but the company maintains a conservative financial policy with a healthy adjusted tangible net worth of INR 12,100 Cr as of March 2024.

Credit Rating & Borrowing

Maintains a 'CRISIL AAA/Stable' rating. The company has nil balance sheet debt as of March 2024, resulting in negligible borrowing costs and superior liquidity with cash equivalents of INR 7,650 Cr.

⚙️ Operational Drivers

Raw Materials

Specific raw materials like copper, steel, and electronic components are utilized for switchgear and locomotives; however, the exact % of total cost for each is not disclosed in available documents.

Import Sources

Sourced globally with significant technical support and know-how from parent Siemens AG in Germany to maintain high-quality production standards.

Capacity Expansion

Acquisition of 99.22% stake in C&S Electric has established a manufacturing hub for low-voltage power distribution. The company is currently executing a massive Indian Railways order for locomotives to be delivered over 11 years.

Raw Material Costs

Susceptible to volatility in the power sector and capital goods industry; operating margins are sensitive to project implementation risks where cost hikes have limited pass-through flexibility.

Manufacturing Efficiency

High efficiency demonstrated by market leadership: >75% of distribution utilities use Siemens Switchgear and >50% of Metros are electrified by Siemens.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth is driven by a 20.5% YoY increase in new orders (INR 20,040 Cr in FY25) and a robust order backlog of INR 42,250 Cr. Strategy focuses on 'Viksit Bharat 2047' opportunities, railway infrastructure development, and the 'Industry Metaverse'.

Products & Services

Locomotives, switchgear, digital industrial controllers, smart building automation, and power grid resilience solutions.

Brand Portfolio

Siemens, C&S Electric.

New Products/Services

Expansion into Industry Metaverse and Digitalization offerings; localization of high-speed rail and metro electrification components.

Market Expansion

Targeting Indian Railways with a specific INR 26,000 Cr locomotive order and expanding the low-voltage export hub via C&S Electric to other developing countries.

Market Share & Ranking

Market leader in several segments: 1 out of 3 industrial controllers in India are Siemens; >75% market share in distribution utility switchgear.

Strategic Alliances

Technical collaboration with Siemens AG (69% shareholder) and a demerger of the Energy business into Siemens Energy India Limited (SEIL) to align with global corporate structure.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainability and digitalization. Siemens is positioning itself to leverage the 'Viksit Bharat 2047' initiative, focusing on resilient supply chains and smart grids.

Competitive Landscape

Faces intense competition from both domestic players and international OEMs in the capital goods and power transmission sectors.

Competitive Moat

Strong moat derived from the 'Siemens' brand equity, 69% parent ownership providing distress support, and deep technical integration with Indian Railways and power utilities.

Macro Economic Sensitivity

Sensitive to private sector capex cycles; FY25 saw a slowdown in short-cycle private capex impacting the Digital Industries segment.

Consumer Behavior

Shift toward energy-efficient factories and smart infrastructure is increasing demand for Siemens' SI and DI portfolios.

Geopolitical Risks

Global headwinds including trade uncertainties and geopolitical conflicts are cited as factors the company must navigate while delivering shareholder returns.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by SEBI Listing Obligations and Disclosure Requirements (LODR) and Business Conduct Guidelines (BCGs). Compliance is monitored by a Regional Compliance Officer.

Environmental Compliance

Launched 'Zero Harm Culture' and recognized among 'India’s Most Sustainable Companies 2025'.

Legal Contingencies

Not disclosed in available documents; however, the company reported a 93% investor complaint redressal rate in fiscal 2023.

⚠️ Risk Analysis

Key Uncertainties

The demerger of the Energy business (SEIL) introduces execution risk. Operating margins are susceptible to project implementation delays which could impact profitability by over 2-3% if sustained.