ENRIN

Siemens Energy India Limited concluded FY25 with robust financial results, reporting a 25% year-on-year revenue growth to INR 78 billion. The company's order inflow surged by 49% year-on-year in FY25, following a 30% growth in FY24. This strong performance contributed to a healthy closing order book of INR 162 billion, providing significant revenue visibility for the coming years, particularly driven by the transmission sector.

The company demonstrated improved profitability in FY25, with the EBITDA margin reaching 19.3%, a notable increase from 15.7% in FY24 and 12.7% in FY23. This was achieved despite one-time^📎 effects impacting EBITDA by 1.3% in FY25, compared to 1.1% in FY24. Adjusting for these effects, the normalized EBITDA margin for FY25 stood at 18%, showcasing strong operational efficiency and execution.

Siemens Energy India is strategically positioned to capitalize on India's ambitious energy transformation and decarbonization goals, including becoming a developed nation by 2047 and achieving net-zero by 2070. The company emphasizes its role in supporting the country's planned expansion of power generation to 1000 gigawatts and 100 gigawatts of nuclear power, alongside the integration of 500 gigawatts of renewables by 2030. This aligns with the company's mission to energize society and navigate the energy transition.

To support future growth and enhance localization, the company is actively expanding its manufacturing capabilities. The Kalwa factory for power transformers is undergoing expansion and is expected to be ready by the end of 2026 or early 2027. Additionally, a new switchgear factory in Aurangabad is under development, with completion anticipated around the same timeframe. These investments bolster local production and R&D contributions, supporting both domestic and global projects.

The company maintains a diversified portfolio across power generation and transmission, with transmission accounting for 64% of order value and 54% of revenue in FY25. It is a market leader in HVDC and grid stabilization, expecting 1-2 HVDC projects and approximately 10 Statcom projects annually. The service portfolio contributes 25-25.6% of revenue, primarily from the generation segment's installed base, while project business accounts for 42% and product business for 32% of revenue mix.

While FY25 saw a peak in transmission orders, management anticipates a moderation to normalized growth in subsequent years. The company acknowledges the slower-than-expected ramp-up of green hydrogen due to economic viability challenges but remains committed to its development. Future growth is also expected from the industrial steam turbine segment, projected to grow at 4-6% annually, driven by sectors like cement, steel, and pulp and paper, alongside opportunities in data centers and nuclear power.