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Siemens Ltd reported a mixed Q1FY27 performance

ICICIdirect Research 12 Aug 2026 DISCLAIMER

News: Siemens Ltd reported a mixed Q1FY27 performance, with revenue rising 14.8% YoY to ₹4,714 crore, while EBITDA declined 16.7% YoY to ₹431 crore and EBITDA margin contracted 340 bps YoY to 9.1%. PAT from continuing operations declined 18.7% YoY to ₹343 crore, with NPM at 7.3% vs 10.3% in Q1FY26. Revenue growth was broad-based, led by Digital Industries (+25.0% YoY), Mobility (+12.8%) and Smart Infrastructure (+10.7%); however, Smart Infrastructure EBIT declined 37.0% and Digital Industries EBIT declined 40.3%. New orders increased 16.5% YoY to ₹6,328 crore, while order backlog grew 9.6% to ₹46,670 crore; excluding the large Mumbai–Ahmedabad High-Speed Rail order in the base quarter, order growth stood at 43.9%. 

View: Siemens delivered a weak profitability performance despite healthy revenue and order growth, with margins impacted by higher commodity/material costs, FX volatility and INR depreciation. Smart Infrastructure, which contributed ~56% of revenue, saw EBIT margin decline to 7.6% from 13.4%, while Digital Industries margin fell to 5.2% from 10.8%, driving the overall margin contraction. While the ₹46,670 crore order backlog and strong order intake provide good revenue visibility, near-term margin recovery will remain key, particularly in Smart Infrastructure and Digital Industries. The one-time ₹2,099 crore gain from the LVM sale is reported under discontinued operations and is therefore excluded from continuing-operations PAT. 

Impact: Neutral

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