What to expect from Siemens India's Q1 FY25-26 results

With India’s capex boom in full swing, Siemens India is poised to report its first full quarterly results (April–June 2025) since the demerger of its energy business. Investors are keenly watching whether core verticals, such as Mobility and Smart Infrastructure, can drive growth despite the absence of power-related revenues and softness in automation.

The company’s recent quarters were a mixed bag. While Q3 FY25 (Oct–Dec 2024) saw a 21.5 per cent YoY net profit jump despite falling revenue, Q4 FY25 (Jan–Mar 2025) witnessed a sharp decline, due to a high base and the spin-off impact. Now operating without the energy business, Siemens’ Q1 FY26 results will provide a “clean slate” view of its continuing operations.

Segmental outlook: Rail, Infra to steady the ship

The Mobility division, which includes rail electrification and signalling systems, is expected to post a strong performance thanks to big-ticket orders, such as the Rs 1,230 crore High-Speed Rail signalling contract and earlier wins, including the Rs 26,000 crore electric locomotive deal.

Smart Infrastructure is another bright spot, driven by demand from sectors like data centres and renewable energy. Analysts expect continued order momentum supported by both government and private capex cycles.

However, the Digital Industries segment may remain under pressure due to weak demand for industrial automation and ongoing inventory corrections. The Low Voltage Motors unit is also struggling, and the company may consider strategic alternatives for it.

Margins and profitability: Normalising from a high base

Investors should be prepared for moderated margins in Q1 FY26. Last year’s comparable quarter benefited from low raw material costs and exceptional income, which may not recur. That said, Siemens' operating businesses typically enjoy high margins, and strong execution could still yield decent profitability.

Valuation & ratings: High quality, but pricey

According to Value Research Stock Ratings, Siemens Ltd holds a 3-star rating (out of 5):

• Quality: 8/10 – Strong return ratios and debt-free status.
• Growth: 6/10 – Decent top-line growth, though not sector-leading.
• Valuation: 3/10 – Expensive at ~42.5x trailing earnings.
• Momentum: 1/10 – Stock is down ~50 per cent YoY amid post-demerger re-rating.

Leaner, focused, and being watched closely

Siemens enters Q1 with a robust order book and structural tailwinds in rail, infra, and digital transformation. Yet, execution in a narrowed business setup will be under scrutiny. While the reported YoY figures may look weak, investors will focus on segment-level performance, margin trends, and management guidance to reassess Siemens’ long-term trajectory.

Explore Siemens’ full financials, quality and growth metrics on Value Research Stock Advisor. Make informed decisions with our independent ratings and analysis.

Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy and is intended for informational purposes only. Please take it with a grain of salt and conduct your own research or consult a financial advisor before making any investment decisions.