Siemens Shares Rally 5% Amid Mixed Q4 Results, Firm Maintains 'Add' Rating

Siemens Shares Rise Over 5 Percent After Reporting Strong Revenue Growth

Siemens shares saw a significant surge of more than 5 percent on Wednesday, following the company's announcement of March quarter revenue that exceeded analysts' estimates. The stock climbed 5.46 percent to an intraday high of Rs 3,878 per share on the NSE.

The company reported a 9.6 percent dip in net profit to Rs 355 crore in the March quarter compared to the year-ago period, mainly due to higher commodity prices and rupee depreciation. The net profit of the company stood at Rs 393 crore in the quarter ended on March 31, 2025. However, revenue from operations rose to Rs 4,618 crore from Rs 4,029 crore in the same period a year ago.

Brokerage firm JM Financial Institutional Securities noted that Siemens' management indicated strong domestic demand across both public and private sectors. The brokerage also observed that order inflows rose 33 percent year-on-year to Rs 67.31 billion during the quarter, taking the order backlog to Rs 450.33 billion. It maintained an 'add' rating on the stock with a target price of Rs 3,595.

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However, according to a report by Informist, Siemens' bottom line for the March quarter missed Street estimates due to a higher base in the corresponding quarter of the previous year. The report highlighted that the year-ago quarter had benefited from income related to discontinued operations of its energy business transferred to Siemens Energy India. Additionally, currency depreciation and higher commodity costs also impacted earnings during the quarter.

JM Financial said Siemens' Q4FY26 EBITDA missed its estimate and consensus estimates by 23 percent and 16 percent, respectively, due to pressure on gross margins. The company reported gross margin at 26.2 percent in Q4FY26 compared with 30.2 percent in Q4FY25. The brokerage attributed the weaker profitability to higher commodity prices and rupee depreciation, as indicated by the management in its press release.