Siemens Limited completed the sale and transfer of its Low Voltage Motors and Geared Motors business to Innomotics India Private Limited for INR 22 billion on June 1, 2026. The transaction was executed on a slump sale basis as a going concern, on a cash-free, debt-free basis, subject to mutually agreed adjustments. The deal was finalized pursuant to a slump sale agreement dated December 8, 2025.

The business transfer includes the Low Voltage Motors and Geared Motors units along with related customer service operations. The enterprise value for the transaction was fixed at INR 22 billion. The completion of the sale was disclosed to the National Stock Exchange of India Limited and BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Transaction Details

The sale was structured as a slump sale, involving the transfer of the business as a going concern. The consideration is payable in cash. The agreement between Siemens Limited and Innomotics India Private Limited outlines the terms for the transfer and subsequent adjustments.

Regulatory and Compliance

Following the completion of the sale, Siemens Limited closed its trading window under the Company's Code of Conduct for Prohibition of Insider Trading. The window remained closed from May 30, 2026, to June 3, 2026, inclusive. The disclosure was made by Ketan Thaker, Company Secretary of Siemens Limited.

Two major brokerages have maintained cautious ratings on Siemens , with both HSBC and Nomura Holdings citing a combination of strong operational momentum and persistent margin headwinds as key factors shaping their outlook on the stock.

HSBC Holds Rating at ₹3,540 Amid Margin Recovery Concerns

HSBC has maintained its Hold rating on Siemens with a target price of ₹3,540. The brokerage acknowledged that strong order inflows and execution supported the company's March-quarter performance. However, higher material costs emerged as a notable pressure point on earnings during the period.

According to HSBC, the capex cycle remains steady, but margin recovery may be slower than earlier anticipated. The brokerage noted that current valuations already reflect medium-term earnings growth and execution optimism, suggesting limited room for further re-rating at this stage.

Nomura Stays Neutral at ₹3,700; Order Inflows Rise 33% YoY

Nomura Holdings has also retained its Neutral rating on Siemens, setting a target price of ₹3,700. The brokerage highlighted that order inflow grew 33% YoY in the March quarter, driven by the MO segment, with strong data-center capex creating sizeable opportunities for the company.

Despite the robust order momentum, Nomura flagged several headwinds that are expected to weigh on profitability. Commodity inflation, rupee depreciation, and foreign exchange headwinds are anticipated to pressure margins in the near term.

The following table summarises the key parameters from both brokerage assessments:

Valuation and Margin Outlook

Nomura's analysis pointed to a specific valuation metric, with the stock currently trading at 60x FY28F EPS. The brokerage projected FY27F EBITDA margin to be 73bps below trailing twelve-month levels, reflecting the cumulative impact of input cost pressures and currency-related challenges.

Both brokerages appear aligned in their view that while Siemens benefits from a healthy order pipeline and a steady capex environment, the path to meaningful margin expansion faces near-term obstacles. The convergence of cautious ratings from HSBC and Nomura underscores the market's watchful stance on the company's ability to translate order momentum into improved profitability.