Equirus Securities has initiated coverage on Siemens Energy India with a Reduce rating and target price of ₹2,695, citing stretched valuations despite the company's strong strategic positioning in India's energy transition. The brokerage acknowledges the company's robust fundamentals but believes current valuations already reflect much of the growth potential.

Strong Financial Performance in FY25

Financial year 2025 marked a breakthrough year for Siemens Energy India following its carve-out from Siemens Ltd. The company delivered impressive financial metrics that underscore its strong market position.

The strong order backlog provides robust medium-term revenue visibility, positioning the company well for sustained growth. Equirus forecasts a compound annual growth rate of 21% in both sales and EBITDA over FY25 to FY28, driven by structural tailwinds in the power sector.

Power Transmission Emerges as Growth Engine

The Power Transmission segment has become Siemens Energy India's primary growth driver, demonstrating exceptional performance across key metrics. The segment's dominance reflects the company's strategic positioning in India's renewable energy integration and grid modernisation efforts.

The segment's strong performance is supported by operating leverage, firm pricing, favourable export mix, and leadership in complex projects. While transmission ordering is expected to normalise after the strong FY25 performance, pricing is likely to remain stable as demand continues to exceed capacity additions.

Ongoing capacity expansions at Kalwa, Aurangabad, and Goa are expected to support a robust 29% CAGR in both sales and EBITDA for this segment over FY25 to FY28.

Diversified Business Portfolio

Siemens Energy India operates across multiple segments, providing diversification and stability to its revenue streams. The Power Generation business contributes 46% of FY25 revenues with EBITDA margins of around 18.00%, underpinned by a large installed base of gas and steam turbines.

In the high-voltage direct current (HVDC) segment, growth opportunities remain selective. The company maintains capabilities in line-commutated converter technology for long-distance bulk power transfer, while addressing localisation requirements through domestic manufacturing and local execution. The HVDC pipeline remains steady with one to two LCC project awards expected annually.

Valuation Concerns Despite Strong Fundamentals

Despite acknowledging the company's strong positioning to benefit from structural drivers in the power sector, Equirus maintains a cautious stance on valuation. The brokerage has valued the stock at 50 times March 2028 earnings, in line with peers, but believes current prices already reflect the growth potential.

Key structural drivers supporting the company include large-scale renewable energy integration requiring grid stabilisation, renewed transmission capital expenditure cycle, and gradual recovery in industrial demand. These factors are expected to provide multi-year growth visibility across Siemens Energy India's core businesses, though the brokerage suggests much of this positive outlook is already incorporated in current market pricing.

Siemens Limited has released the official transcript of its analyst and institutional investor meet held on December 12, 2025, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The comprehensive transcript covers the company's performance for the 12 months ending September 2025 and strategic outlook.

Transcript Release and Availability

The company filed the transcript with both the National Stock Exchange of India Limited (NSE: SIEMENSEQ) and BSE Limited (BSE: 500550) on December 18, 2025. The document is available on the company's official website at https://www.siemens.com/in/en/company/investor-relations/analyst-meet.html2025 .

Management Participation and Key Discussions

The analyst meet featured key management personnel including Mr. Sunil Mathur (Managing Director and Chief Executive Officer), Mr. Wolfgang Wrumnig (Executive Director and Chief Financial Officer), and Ms. Radhika Arora (Head, Investor Relations). The session covered detailed business and financial overview of the company's three main segments: Digital Industries, Smart Infrastructure, and Mobility.

Financial Year Transition Context

As highlighted in the transcript, the discussions covered the 12-month period ending September 2025, which is not the company's financial year end. Siemens Limited is transitioning its financial year from September to March end cycle, with the next financial year concluding in March 2026. This transition involves an 18-month period from October 1, 2024, to March 31, 2026.

Strategic Alignment with India's Growth Vision

The management emphasized Siemens' strategic positioning within India's Viksit Bharat 2047 vision, highlighting the company's role across infrastructure development, manufacturing growth, and energy transition initiatives. The company maintains significant market presence with one in three automation controllers from Siemens, 75% of distribution utilities powered by Siemens switchgear, and 50% of metros electrified by Siemens.

Low Voltage Motors Business Divestment

The transcript confirms the Board's approval for the sale of the Low Voltage Motors business to Innomotics India Pvt. Ltd. for an enterprise value of ₹22.00 billion (₹220 crore), representing a 50.5x FY25 EBITDA multiple. The transaction is expected to close in June 2026, subject to customary conditions and regulatory approvals.

The comprehensive transcript provides detailed insights into the company's operational performance, strategic initiatives, and future outlook across all business segments, serving as a valuable resource for investors and analysts tracking Siemens Limited's progress.