Siemens growth engine gaining speed

ORDER INFLOWS SWELL 20% Y-O-Y TO ¥20,000 CRORE IN FY25

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SIEMENS HAS COME through a lacklustre FY25, with near-term softness masking a more constructive medium-term narrative.Beneath the muted performance, earnings are projected to grow at a compound annual rate of more than 15% over the next two years, supported by rising demand in electrification, rail mobility and a strengthening order pipeline. Against this backdrop, the brokerage has upgraded the stock to a Buy, raising its sum-of-the-parts valuation to 3,700. Following a disappointing year, the company appears positioned for a materially stronger phase of growth.

Revenue rose 8% yo-y to about ₹15,500 crore, a marked slowdown from the pace of the preceding five years, as private-sector manufacturing capital expenditure fell short of expectations. Operating profitability weakened, with earnings before interest, tax, depreciation and amortisation was contracting roughly 180 basis points to 10.6%. The deterioration was driven largely by margin pressure in the Digital Industries segment, where profitability declined sharply.