Siemens Ltd (SIEMENS)
🎯 Key Takeaways
- Siemens Ltd is in a strategic transition phase, leveraging structural gains from the demerger of its Energy business and a one-time ₹2,099 crore gain to strengthen financial flexibility, while maintaining a disciplined capital structure with zero net debt. The company is actively reinvesting in high-margin segments like Smart Infrastructure and Mobility, supported by robust governance and shareholder-approved capital allocations.
- Revenue grew 2.1% QoQ to ₹4,714 in Q1FY27.
- ⚠️ The company faces margin pressure in core operations, as evidenced by declining OPM to 7.5% in Q1 FY2026 despite revenue growth. The one-time ₹2,099 c
📖 The Story
Siemens Ltd is in a strategic transition phase, leveraging structural gains from the demerger of its Energy business and a one-time ₹2,099 crore gain to strengthen financial flexibility, while maintaining a disciplined capital structure with zero net debt. The company is actively reinvesting in high-margin segments like Smart Infrastructure and Mobility, supported by robust governance and shareholder-approved capital allocations.
📰 What's Happening
In its 68th AGM on 11 August 2026, shareholders approved the unaudited Q1 FY2026 results, a dividend of ₹18 per share, and ratified auditor remuneration. The board sanctioned the demerger of the Energy business and the sale of Low Voltage Motors (LVM), which generated a ₹2,099 crore gain from discontinued operations. Transactions with Siemens AG up to ₹85,000 million were approved for FY 2026-27. The Supreme Court dismissed a Special Leave Petition on 20 August 2026, resolving a GST demand of ₹34.83 crores in the company's favor, removing a key litigation overhang.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 4,900 | 3,831 | 4,618 | 4,714 |
| Operating Profit | 541 | 351 | 370 | 353 |
| OPM % | 11.0% | 9.2% | 8.0% | 7.5% |
| Net Profit | 485 | 278 | 370 | 2,143 |
| EPS | ₹13.63 | ₹7.80 | ₹10.40 | ₹60.18 |
Q1 FY2026 revenue rose to ₹4,714 crores from ₹4,618 crores in Q4 FY2026, driven by growth in Smart Infrastructure and Mobility, though profit before tax declined to ₹353 crores from ₹370 crores, reflecting margin pressure. The ₹2,099 crore gain from LVM sale contributed significantly to total income but distorted core profitability, as net profit fell sharply to ₹2,143 crores from ₹370 crores in the prior quarter. Operating margins moderated to 7.5% from 8.0%, indicating ongoing pressure in core operations despite top-line growth.
🔮 Management Outlook & What's Next
Management has signaled confidence in cash flow generation through the ₹18 per share dividend declaration and approved up to ₹85,000 million in transactions with Siemens AG for FY 2026-27, likely to support integration of the demerger and strategic investments. The absence of management changes at the AGM suggests continuity in leadership, with focus shifting to execution of the demerger and capital allocation within the streamlined structure.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|
| Equity Capital | 71 | 71 | 71 |
| Reserves | 12,255 | 13,156 | 13,769 |
| Borrowings | 135 | 145 | 0 |
| Total Liabilities | 13,079 | 14,005 | 21,301 |
| Fixed Assets | 1,024 | 1,199 | 2,725 |
| Investments | 1 | 1 | 63 |
| Total Assets | 13,079 | 14,005 | 21,301 |
The balance sheet shows a significant shift in reserves, rising to ₹13,769 crores from ₹13,156 crores in March 2026, driven by retained earnings and the ₹2,099 crore gain from discontinued operations. Borrowings remain minimal at ₹145 crores, down from ₹135 crores, reflecting strong equity backing and a conservative capital structure. Total assets grew to ₹21,301 crores, indicating expanded investments following the demerger and asset sales.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | -535 |
| Investing | +3,688 |
| Financing | -3,302 |
| Net Cash Flow | -149 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 75.0% | 75.0% | 75.0% | 75.0% |
| FII | 7.0% | 6.8% | 6.8% | 6.5% |
| DII | 8.0% | 8.3% | 8.6% | 9.1% |
| Public | 7.9% | 7.8% | 7.6% | 7.4% |
| # Shareholders | 2,81,243 | 2,70,941 | 2,58,262 | 2,57,203 |
Institutional investor shareholding has remained relatively stable, with FII holding at 6.47% in Q1FY27 (down slightly from 6.8% in Q4FY26), while DII increased to 9.09% from 8.6%. Promoter holding remains steady at 75%. The number of shareholders has declined slightly, suggesting consolidation, but no signs of major exit by foreign or domestic institutions. The stable institutional interest supports confidence in governance and long-term positioning.
⚖️ Peer Comparison — Capital Goods - Electrical Equipment
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| ABB | 1.57 L Cr | 52.7 | 26.5% | 38.1% | 0.00 |
| BHEL | 1.51 L Cr | 62.1 | 11.6% | 9.3% | 0.30 |
| POWERINDIA | 1.49 L Cr | 129.2 | 29.9% | 22.2% | 0.00 |
| SIEMENS | 1.44 L Cr | 43.9 | 14.2% | 23.7% | 0.00 |
| CGPOWER | 1.41 L Cr | 113.0 | 21.3% | 15.6% | 0.00 |
| GVT&D | 1.11 L Cr | 85.1 | 99.4% | 73.6% | 0.00 |
| WAAREEENER | 75,911 | 19.9 | 54.0% | 42.2% | 0.10 |
| APARINDS | 71,126 | 60.2 | 33.0% | 21.9% | 0.16 |
| SUZLON | 64,289 | 20.5 | 44.5% | 51.5% | 0.05 |
| THERMAX | 46,983 | 74.9 | 12.5% | 10.6% | 0.41 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
The company faces margin pressure in core operations, as evidenced by declining OPM to 7.5% in Q1 FY2026 despite revenue growth. The one-time ₹2,099 crore gain from LVM sale masks underlying profitability trends, making sustainability of earnings a concern. Integration risks associated with the Energy business demerger and capital allocation decisions toward Siemens AG transactions could impact financial flexibility if not executed efficiently.
📋 Recent Filings
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🔴 Announcement 20 August 2026Siemens Limited announced that the Supreme Court dismissed a Special Leave Petition challenging a Gujarat High Court order that quashed a GST demand o...
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🟡 Board Meeting 12 August 2026No summary available
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Announcement 11 August 2026Siemens Limited announced management changes effective August 16-17, 2026, with Swapnil Deosthali exiting Digital Industries head role, Suprakash Chau...
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🟡 Board Meeting 11 August 2026Siemens Limited shareholders approved the audited financial statements for the 18-month period ending March 31, 2026, declared a dividend of **₹18 per...
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🟡 Board Meeting 11 August 2026Siemens Limited approved its unaudited Q1 FY2026 financial results (ending 30 June 2026) on 11 August 2026, reporting consolidated revenue of **₹4,299...
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🟡 Board Meeting 2 July 2026Siemens Limited announced a recommended dividend of Rs 18 per share for FY2026, payable after AGM approval, with TDS deductions under the Income Tax A...
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Announcement 3 June 2026Siemens India reported strong order growth of 33% YoY to INR 67.3 billion and revenue up 14.6% YoY to INR 46.2 billion for Q3 ending March 2026, drive...
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🔴 Insider Trading 1 June 2026Siemens Limited announced the completion of its slump sale of the Low Voltage and Geared Motors business to Innomotics India Private Limited for INR 2...
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Announcement 28 May 2026Siemens India announced that audio recordings from its May 28, 2026 analyst and institutional investor meeting are now accessible on its investor rela...
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🟡 Board Meeting 26 May 2026Siemens Limited announced the board approval of a scheme to amalgamate its wholly owned subsidiary Siemens Rail Automation Private Limited (SRAPL) int...
🧠 Analyst's Read
Siemens Ltd is repositioning its portfolio with the demerger of Energy and strategic focus on high-growth segments, supported by strong governance and institutional confidence. Investors should monitor the execution of post-demerger capital allocation, margin recovery in core businesses, and the contribution of new segments to sustainable earnings growth.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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