Siemens India Q2 Revenue Up 17%, New Orders Climb 38%
The industrial technology firm reported ₹5,734 crore in September quarter revenue, driven by strong infrastructure and private-sector investment despite margin pressure from rising input costs.
Siemens India's Strong Q2 Performance
Siemens India announced a 17% year-on-year increase in consolidated revenue for its September quarter (Q2FY27), reaching ₹5,734 crore. The industrial technology firm also saw new order inflows surge by 38%, totalling ₹6,228 crore. These results were driven by strong infrastructure development and rising private-sector investment across India.
The company's order backlog now stands at ₹47,034 crore, providing revenue visibility of approximately 2.5 times its trailing 12-month revenue.
Segmental Growth Amid Margin Pressure
Growth was broad-based, exceeding analyst expectations. The smart infrastructure business led with a 20% revenue increase to ₹3,281 crore. Its mobility segment grew 14% to ₹1,291 crore, while digital industries expanded 8% to ₹1,150 crore. Despite this top-line expansion, rising raw material costs, up 21%, compressed the gross margin by 260 basis points (bps) to 27.3%.
Earnings Before Interest, Taxes, Depreciation, and Amortisation (Ebitda) margin contracted by 150 bps to 10.9%, though it recovered 180 bps sequentially.
Outlook for Growth and Profitability
Siemens India expects smart infrastructure to maintain momentum from investments in power distribution, grid modernisation, renewable energy integration, and data centres. Mobility could benefit from increased locomotive deliveries and broader railway capital expenditure.
Analysts at Motilal Oswal Financial Services forecast a 17% revenue compound annual growth rate (CAGR) for smart infrastructure over FY26–FY29. However, competitive bidding and margin compression remain concerns, particularly in mobility, where Ebit margin fell 364 bps to 7.5%.
Siemens India's strong order book and revenue growth show a gathering capital expenditure cycle in India, extending beyond government-led projects to include private sector spending. This shift suggests a broader demand base for industrial technology and infrastructure solutions.
However, the reported margin pressures from input costs and competitive bidding indicate that converting this growth into higher earnings will require careful management of operational efficiencies and pricing strategies. Investors in India's industrial and infrastructure sectors should monitor these dynamics, as they reflect the balance between strong demand and cost pressures.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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