Siemens (SIEM IN) – Q4SY25 Result Update – Decent Q4, margin recovery will be key focus – Accumulate
Published on 15 Nov 2025
We revise our SY26/SY27E EPS estimates by -3.8%/-1.8% factoring in slower execution pace in Digital Industries and LVM, which is affecting the overall margin profile. Siemens (SIEM) reported a decent quarter with revenue up 16% YoY to Rs51.7bn, while EBITDA margin contracted 15bps YoY to 12.3% due to higher other expenses, with a decline in other income (-26.6% YoY) further dragging profitability. The quarter was driven by strong execution in Smart Infrastructure (+20% YoY) and the Mobility business (+28.6% YoY), whereas Digital Industries remained soft, weighed down by a lower carry-forward order backlog and muted private capex. Low Voltage Motors continued to face headwinds from demand normalization further impacting segment performance. Nevertheless, Order book remains healthy at Rs422.5bn with order inflow of Rs48bn, supported by strong traction across electrification, T&D, utilities, semiconductors, data centers, and sustained investments in rail and metro infrastructure. The stock is currently trading at 53.3x/45.3x on SY26/27E. We roll forward to Sep’27E and maintain our ‘Accumulate’ rating with a revised TP of Rs3,470 (vs. Rs3,431 earlier), valuing the stock at 51x Sep’27E (53x Mar’27E earlier).
