Broker’s call: Siemens Energy (Accumulate)

Target: ₹3,566

CMP: ₹3,097.95

Siemens Energy India delivered a robust quarter, with revenue rising 27 per cent YoY to ₹2,650 crore, although EBITDA margin contracted by 40bps y-o-y to 18.1 per cent due to a higher share of project revenues. Growth was led by the Power Transmission segment (48 per cent y-o-y) which accounted for around 51 per cent of quarter’s revenue mix, while the Power Generation segment posted a moderate 11 per cent y-o-y increase.

Order intake was broadly stable, owing to the advancement of major order finalisations into the previous quarter. Siemen Energy’s medium-term outlook remains strong, supported by a robust order book position and strong prospects, including a VSC HVDC project (Khavda–South Olpad).

Furthermore, the upcoming operationalisation of its power transformer capacity expansion, alongside phased capacity additions across other key transmission products through FY26 and FY27 and launch of Industrial Steam Turbine service centre in Raipur, should meaningfully strengthen the company’s volume trajectory.

The stock is currently trading at a PE of 80.1x/62.1x on FY26/FY27. We revise our FY26/SY27E EPS estimates upward by 3.9/6.1 per cent, reflecting stronger-than-anticipated order intake momentum likely in Power T&D, and upgrade our rating on the stock from ‘Hold’ to ‘Accumulate’ following the recent correction in its price. We value the company at a PE of 70x Sep’27E arriving at a TP of ₹3,566 (₹3,360 earlier).

Published on November 25, 2025