Siemens Ltd – ₹48,000 Cr Order Book, But Investors Still Paying German Engineering Prices for Indian Execution
1. At a Glance
Siemens India is that cousin who studied engineering in Germany but moved back to India to run family business. Backed by Siemens AG with a 75% stake, it builds everything from metro trains to power grids. Market cap ₹1.1 lakh Cr, order book ₹48,000 Cr, but the stock trades at 64x P/E—basically like buying a German car in India: performance is smooth, but road humps (demand cycles, project delays) can rattle your spine.
2. Introduction
Founded as the local arm of Siemens AG, this company has been India’s poster child for automation, power transmission, digital industries, and rail mobility. Think of it as the desi version of a Swiss army knife for industrial and infra projects: turbines, transformers, switchgears, rail electrification, software automation—you name it, Siemens has its logo slapped on it.
In FY25, they pulled off a corporate yoga pose—demerged the Energy business into Siemens Energy India (share swap 1:1). That move slimmed the portfolio, focusing Siemens Ltd more on digital, smart infra, and mobility. The order book continues to be juicy, driven by metro projects, smart grids, and Make in India incentives.
But profits aren’t scaling as fast as orders. Q2 FY25 revenue was flat YoY, and PAT fell due to demerger costs. On the stock side, investors are paying ₹3,089/share for ~₹69 EPS. Translation: you’re shelling out 64x earnings when the industry median is ~46x. Too much optimism? Or does German engineering really deserve this premium?
3. Business Model – WTF Do They Even Do?
Siemens Ltd is structured like a thali with multiple curries:
Smart Infrastructure (40% H1 FY25): Digital grids, automation, urban infra—basically smartifying India’s rickety power lines.
Digital Industries (17%): Software + automation for process industries. Their “Digital Enterprise Suite” is like ChatGPT for machines—promises efficiency, but only if you pay the subscription.
Mobility (13%): Trains, rolling stock, signaling. They just bagged a ₹1,230 Cr signaling contract for India’s first bullet train. Think Shinkansen speed, Indian Railways chai.
Low Voltage Motors (4%): Bread-and-butter motors for food, metal, chemicals. Outsourced manufacturing but Siemens’ IP.
Energy (24% before demerger): Gas turbines, hybrid hydrogen plants, power generators—now shifted to Siemens Energy India.
Basically: whatever makes cities, industries, and trains run, Siemens supplies it—with a German accent.
4. Financials Overview
Source table
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
₹4,347 Cr
₹3,763 Cr
₹4,259 Cr
+15.5%
+2.1%
EBITDA
₹521 Cr
₹485 Cr
₹468 Cr
+7.4%
+11.3%
PAT
₹423 Cr
₹578 Cr
₹582 Cr
-26.8%
-27.3%
EPS (₹)
11.9
16.2
16.3
-26.5%
-27.0%
Commentary: Revenue is growing, margins steady, but PAT is falling harder than my Wi-Fi during a cricket match livestream.
