Target: ₹3,566
CMP: ₹3,097.95
Siemens Energy India reported a strong quarterly performance, with a 27% year-over-year increase in revenue, reaching ₹2,650 crore. Despite this growth, the EBITDA margin shrank by 40 basis points to 18.1%, primarily due to an increased share of project revenues. The Power Transmission segment was the major driver, exhibiting a 48% year-over-year growth and contributing approximately 51% to this quarter’s revenue. In contrast, the Power Generation segment saw a more modest increase of 11% year-over-year.
Order intake remained relatively stable, largely due to the advancement of significant order finalizations into the preceding quarter. Siemens Energy maintains a positive medium-term outlook, backed by a robust order book and promising opportunities, including a VSC HVDC project between Khavda and South Olpad.
Additionally, the company’s upcoming operationalization of its expanded power transformer capacity and incremental capacity additions across key transmission products planned for FY26 and FY27, along with the establishment of an Industrial Steam Turbine service center in Raipur, are expected to significantly enhance its volume trajectory.
Currently, the stock trades at a price-to-earnings (P/E) ratio of 80.1x for FY26 and 62.1x for FY27. Following a recent price correction, the company has revised its FY26 and FY27 earnings per share (EPS) estimates upward by 3.9% and 6.1%, respectively, indicating stronger-than-expected order intake momentum in the Power Transmission and Distribution sector. The rating on the stock has been upgraded from ‘Hold’ to ‘Accumulate’. The company is valued at a P/E of 70x based on September 2027 estimates, setting a target price of ₹3,566, up from a previous estimate of ₹3,360.
Published on November 25, 2025
