Siemens: Revenue and EBITDA Impacted by Slowdown in Private Sector Capital Expenditure

Siemens India’s (SIL) revenue/EBITDA/APAT of INR 33.3/4/3.9bn fell shortly by 1.4/7.9/13.6% respectively, from our estimates. Revenue and EBITDA were impacted by slowdown in the short cycle private sector capex spending. Smart infrastructure delivered strong execution and mobility segment witnessed two significant order wins.

For some time now, the Digital Industries segment has been a laggard. In this quarter, the worst seems to be behind for the segment, with business now showing signs of recovery indicating that de-stocking phase is now largely over.

SIL’s order inflow (OI) stood at INR 56.8bn (+13% YoY) as of Jun’25, with order book (OB) standing at INR 428.5bn. It is supported by two significant order wins in the Mobility business. SIL has executed the demerger of its energy segment into a separate entity, which was listed in Jun’25. Its segments are exposed to government capital expenditure, which is expected to grow 10% YoY, while the private capital expenditure recovery is contingent on pick-up in consumption.

We have marginally recalibrated our estimates higher. Given the robust order backlog and stable order inflows, we maintain a BUY rating, with increased TP of INR 3,862 (rolled over to 55x Jun-27 EPS).

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Source: HDFC Securities Institutional Equities

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