01 — At a Glance
The German Technology Conglomerate That Demerged Its Energy Jewels
- 52-Week High / Low₹3,441 / ₹2,450
- FY25 Revenue (Full Year)₹17,337 Cr
- FY25 PAT (Full Year)₹1,635 Cr
- Full-Year EPS (FY25)₹49.6
- TTM EPS₹49.63
- Book Value₹371
- Price to Book8.80x
- Dividend Yield0.37%
- Debt / Equity0.01x
- Order Backlog₹4,23,000 Cr
Opening Remarks: Siemens India posted ₹17,337 crore revenue in FY25 (12M to Sep 2025) with ₹1,635 crore PAT, delivering 9.73% net profit margin. The Energy business was demerged post-March 2025; Siemens Energy India (SEIL) now listed separately. What’s left? Digital Industries, Smart Infrastructure, and Mobility — three segments with ₹4.23 lakh crore order backlog. The company is trading at 71x P/E, reflecting investor expectations for double-digit order growth and railway-led upside. LVM business sale to Innomotics at ₹2,200 crore pending regulatory closure.
02 — Introduction
When A German Conglomerate Decides “Let’s Get Focused”
Siemens Limited used to be the conglomerate of conglomerates. Power systems. Trains. Automation software. Industrial drives. Transformers. Gas turbines. Hybrid hydrogen plants. All under one roof. Kind of like Amazon, except Siemens actually knows what it’s doing.
Then March 2025 happened. The National Company Law Tribunal (NCLT) approved the demerger of the Energy business into Siemens Energy India Limited (SEIL), a subsidiary that will be separately listed. Why? Management’s thesis: “Two strong and independent listed entities will have sharper business focus, ability to execute their own strategy, and unlock shareholder value.” Translation: Energy was a 31% revenue machine, 35% of consolidated EBITDA, with a ₹10,050 crore order book—big enough to deserve its own CEO and capital allocation strategy.
What remains at Siemens Limited (post-demerger)? Digital Industries (17% of revenue, declining post-COVID normalization), Smart Infrastructure (40%, fastest growing), Mobility (13%, railways + urban transit + signaling), and the Low Voltage Motors business (4%, now being sold to Innomotics India at ₹2,200 crore). Combined, they generated ₹17,337 crore revenue in FY25 against a backdrop of ₹4.23 lakh crore order backlog. Crisil just reaffirmed AAA/Stable ratings. The stock is at 71x P/E, implying the market believes India’s CapEx supercycle will hit new highs by 2026–27.
Let’s parse the numbers, the order book nuance, and whether 71x is justified for a company selling “machines that make machines.”
Investor Positioning Note: Post-demerger, Siemens AG (parent) holds 75% of Siemens Ltd and 69% of Siemens Energy India. FIIs hold 6.85%, DIIs 8.35%, public 9.79%. LIC holds around 2.03%. The restructuring is complete. Momentum is real.
03 — Business Model: Three Vertical Bets in India’s Capex Supercycle
Smart Stuff. For Smart People. Who Build Other Smart Stuff.
Siemens does not sell commodities. It sells solutions to industrial problems. That’s the positioning. Let’s decode what that actually means.
🔧 Digital Industries (17% of FY25 revenue, ₹2.9bn orders in FY25)
Automation software and hardware for factories. Think: programmable logic controllers (PLCs), drives, industrial software, engineering tools. Customers: machine tool makers, automotive suppliers, pharma manufacturers, F&B, steel mills. Siemens claims “one in three” automation controllers installed in India are Siemens. The business model: OEM partnerships + direct factory sales + system integrators. Post-COVID normalization has pressured growth; management expects recovery when private CapEx picks up.
⚡ Smart Infrastructure (40% of FY25 revenue, ₹10.3bn orders in FY25)
Power distribution systems, switchgear, transformers, building automation, energy management. The largest segment. Siemens is over 75% of DISCOMs’ switchgear supply. Key verticals: data centres (AI boom = massive demand), commercial buildings, industrial parks, renewable energy integration. Localization at ~65% of portfolio; CapEx underway on vacuum interrupter and GIS factories in Goa. Margins: 13.6% in FY25, management targets further expansion via localization + scale.
🚆 Mobility (13% of FY25 revenue, ₹5bn orders in FY25)
Rolling stock, rail signaling, electrification, propulsion. The headline order: 1,200 x 9,000 HP locomotives from Indian Railways (₹26,300 crore, booked in early 2023, now ramping). First loco delivered May 2025; PM flagged it off. Delivery schedule: 40 units/year for 2 years, then 80/year for 2 years, then 100+/year. Plus Kavach (train collision avoidance system) developmental orders and Ahmedabad–Mumbai high-speed rail signaling win (₹1,230 crore). This segment will grow revenue faster than others—but execution is everything.
The play: India’s manufacturing ambition requires automation (DI), power infrastructure (SI), and rail transport (Mobility). Siemens is betting all three grow 8–12% annually for the next five years. The order book gives visibility. The question is execution risk and margin sustainability as competition (ABB, Hitachi Energy, CG Power) intensifies.
04 — Financials Overview: FY25 (12 Months to Sep 2025)
The Numbers Game: Revenue Up, Profit Down (But For Reasons)
Result type: Full Year (12M to Sep 2025) | EPS: ₹49.6 | TTM EPS: ₹49.63 | Demerger of Energy business completed March 25, 2025
| Metric (₹ Cr) |
FY25
(12M Sep 2025) |
FY24
(12M Sep 2024) |
FY23
(12M Sep 2023) |
YoY %
(FY25 vs FY24) |
3-Yr CAGR |
| Revenue | 17,337 | 22,240 | 19,554 | -22.1% | -5.8% |
| Operating Profit | 2,007 | 3,104 | 2,487 | -35.4% | -10% |
| OPM % | 11.6% | 14.0% | 12.7% | -240 bps | — |
| PAT | 1,635 | 2,718 | 1,962 | -39.8% | -8.3% |
| EPS (₹) | 49.6 | 76.3 | 55.1 | -35.0% | -5.3% |
The Plot Twist: FY25 looks bad on paper because FY24 included the Energy business at full capacity. FY25 is post-demerger (Energy gone as of March 25, 2025). Comparing like-for-like: DI + SI + Mobility only (excluding Energy, LVM, and demerger costs) showed revenue of ₹17,337 crore vs FY24’s combined ₹12,960 crore (proforma). Management cited demerger expenses of ₹63 crore in Q2 (Dec 2024), plus ₹1 billion total in FY25 vs ₹0.1 billion in FY24. Profit also impacted by transfer pricing normalization and end of supply-chain spike premiums.
05 — Valuation: Fair Value Range Analysis
Is 71x P/E Reasonable For A ₹4.23 Lakh Crore Order Book?
Join 10,000+ investors who read this every week.
