Siemens (SIEM IN) – Q2FY27 Result Update – Healthy execution and inflows amid input pressure – Upgrade to ‘ACCUMUALTE’
Published on 07 Nov 2026
We have revised our EPS estimates by -6.6%/-4.5% for FY28E/FY29E, factoring in persistent commodity inflation and forex volatility weighing on margins. Siemens (SIEM) reported a mixed quarter, with revenue growing 17.0% YoY to INR 57.3bn, while EBITDA margin contracted 193bps YoY to 10.9%, impacted by adverse forex movements and elevated commodity prices. Smart Infrastructure (SI) delivered robust revenue growth of 20.4% YoY, supported by demand across power T&D capex, grid modernisation, data centre investments and commercial infrastructure. Digital Industries (DI) grew 8.0% YoY, driven by demand for Industry 4.0, factory automation, smart manufacturing and software-led digitalisation across automotive, pharma, chemicals, metals and cement. We roll forward to Sep’28E and upgrade our rating from ‘Hold’ to “Accumulate” given overall correction in stock despite recent recovery; valuing the stock at a PE of 50x Sep’28E (51x Mar’28E) arriving at a TP of INR 3,850 (INR 3,831 earlier).
