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    ENRIN

    ENRIN
    Capital Goods·15 May 2026
    Management Summary

    Siemens Energy India Limited delivered a strong H1 FY26, marked by a 22.2% increase in order backlog to ₹184 billion and a 27% rise in revenue to ₹43 billion. Operational profitability expanded significantly, with reported margins reaching 20.7% and underlying margins at 18.9%. The company is making substantial capital investments, including ₹7.4 billion for brownfield expansions and ₹20.6 billion for a new greenfield transformer factory, to capitalize on robust demand in both power transmission and generation segments.

    Highlights

    5

    • Order backlog increased by 22.2% to ₹184 billion (from ₹150 billion), providing strong future revenue visibility.

    • Revenue grew approximately 27% year-on-year to ₹43 billion (from ₹34 billion), demonstrating efficient execution.

    • Reported profit from operations margin improved by 160 basis points to 20.7% (from 19.1% in H1FY25), driven by operating leverage and higher export contribution.

    • Underlying operational profit margin, adjusted for one-offs, improved by 170 basis points to 18.9% (from 17.2%).

    • Power Generation segment's profit from operations improved significantly from 17.7% to 21.3%.

    Concerns

    3

    • Geopolitical situation, particularly the Middle East crisis, poses challenges, though India shows resilience.

    • The STATCOM market experienced a muted H1 FY26 with fewer projects finalized, attributed to the volatile nature of infrastructure projects.

    • Order development in the energy space is not uniform, leading to fluctuations in order intake across quarters.

    Key financials

    Single quarter

    05 metrics
    1. 01Order Backlog$184B+22.2%YoY
    2. 02Revenue$43B+26.5%YoY
    3. 03Profit from Operations % (Reported)20.7%
    4. 04Profit from Operations % (Underlying)18.9%
    5. 05Services Revenue$12B

    Segment breakdown

    • Power Transmission24 billion55.8%
    • Power Generation19 billion44.2%
    Donut· Share of Revenue

    Order Book

    high confidence

    Total Value

    ₹ 184 billion

    as of 2026-03-31

    quantified
    22.2% YoY

    Composition

    Mix2 segments
    • Power Transmission67.9%
    • Power Generation32.1%

    Share of order book by segment

    "The order backlog growth of 22.2% and a book-to-bill ratio of 1.5 indicate a very healthy growth of orders in relation to revenue, providing strong visibility for future revenues."

    Source:
    Prepared remarks

    Capital allocation

    1
    medium confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Guidance & targets

    6
    CategoryTargetPriority
    Other
    Net Zero Target Investment
    $9-14 trillion
    		High
    Other
    CO2 Footprint Reduction
    climate neutral
    		High
    Capacity
    Generation Capacity
    1,200 gigawatts
    		High
    Capacity
    Transmission Transformation
    800 GVA
    		High
    Capacity
    Nuclear Power Generation
    100 gigawatts
    		High
    Capacity
    Data Center Capacity
    7 to 18 gigawatts
    		Medium

    Kalwa & Aurangabad capacity expansions online

    Mid-next year (calendar year 2027)
    CurrentUnder construction
    TargetGaining traction, coming online

    Why it matters

    These brownfield expansions (₹7.4 billion) are crucial for increasing manufacturing capacity in power transmission (transformers, switchgears) to meet growing demand.

    So, both, as Guilherme had mentioned, we have those two 7.4 billion of CapEx in Kalwa as well as in Aurangabad in our switchgear factory. So, this is expected to gain traction and come on track by, we would say, next year, mid-year. About half year of the calendar is when we could see more traction on those two topics.

    How to verify

    capital_allocation.capex.purposes[description='Brownfield expansions (Kalwa, Sambhajinagar) for capacity increase']

    Risks & concerns

    3
    RiskSeverity

    Geopolitical situation (Middle East crisis)

    The Middle East crisis and global geopolitical situation pose challenges, though India shows resilience, its duration will impact. — Management acknowledged

    medium

    Dependency on external supplies (oil and gas)

    India has high dependency on imported oil (88%) and gas (>50%), driving a push for electrification and local resources. — Management acknowledged

    medium

    Volatility in infrastructure business/energy markets

    The energy space markets do not develop uniformly or regularly, leading to fluctuations in project finalization and order intake. — Management acknowledged

    medium

    Q&A highlights

    8

    “In Vadodara, our steam turbines are more focused on the industrial steam turbines. And normally, when we talk about the combined cycles for utilities or for data centers, this is in a higher range, so what we call large steam turbines. And large steam turbines, we do not manufacture in India, because they are normally connected to the gas turbine, right? As we do not have large gas turbines in the country, it makes less sense to have them localized. So, we are not exporting, to your question, steam turbines out of India for these global gas turbines in combined cycles.”

    Clarifies the scope of Indian manufacturing and export for a key global growth area (gas turbines for combined cycles/data centers), indicating a limitation for the Indian entity.

    asked by Harshit Patel

    3 min read8 chapters

    Detailed Narrative

    01

    Energy Transition and Market Opportunities in India

    India is targeting net-zero by 2070, necessitating $9-14 trillion in investments. Electricity consumption is projected to increase tenfold from 1,400 kWh per capita to 13,000 TWh by 2070. The CEA's updated mid-term plan (2030-2036) forecasts a generation capacity increase from 1,000 GW to 1,200 GW and 800 GVA in transmission. Siemens Energy India is strategically positioned, focusing on low-carbon power generation and a comprehensive power transmission portfolio to capitalize on these trends.

    02

    H1 FY26 Business Performance Overview

    Siemens Energy India Limited reported a robust H1 FY26. The order backlog grew 22.2% year-on-year to ₹184 billion from ₹150 billion, providing strong revenue visibility. Revenue increased by approximately 27% year-on-year to ₹43 billion from ₹34 billion, demonstrating efficient execution. Profit from operations as a percentage of revenue improved by 160 basis points, reaching 20.7% in H1 FY26 from 19.1% in H1 FY25, driven by operating leverage and higher export contribution.

    03

    Segmental Performance: Power Transmission (PT) and Power Generation (PG)

    The Power Transmission segment showed strong growth, with order backlog increasing 27.5% to ₹125 billion and revenue growing 30% to ₹24 billion, maintaining a stable margin of 20.3%. The Power Generation segment also performed well, with order backlog up 12.4% to ₹59.2 billion and revenue growing 23% to ₹19 billion. PG's profit from operations improved significantly from 17.7% to 21.3%, benefiting from improved operating leverage.

    04

    Strategic Investments and Capacity Expansion

    To meet growing market demand, the company is undertaking significant capacity expansions. This includes ₹7.4 billion for brownfield expansions at Kalwa (doubling transformer capacity from 15,000 to 30,000 MVA) and Sambhajinagar (expanding switchgear manufacturing), both currently in full swing. Additionally, a new greenfield transformer factory, a ₹20.6 billion investment, was announced in Q1 FY26, with the location currently being finalized.

    05

    Export Strategy and Global Linkages

    Exports contributed positively to the business mix, with a 500 basis point increase year-on-year, primarily driven by power transmission products like transformers for US data centers and switchgears for Europe/Middle East. While SEIL's direct sales rights are limited to South Asia, it supports global operations through export services and products at the parent company's request, leveraging its local manufacturing footprint.

    06

    Data Center and Nuclear Energy Opportunities

    India's data center market is projected to grow significantly from 1-2 GW to 7-18 GW, with SEIL participating through power transmission solutions like substations and grid stabilization. The company also sees nuclear energy as a key future growth area, with India targeting 100 GW by 2047, offering opportunities for SEIL in steam island technology, as SEIL avoids new coal plants and gas availability limits new gas plants.

    07

    ESG and Operational Excellence

    Siemens Energy India is committed to becoming climate neutral in its own operations by 2030. The company has successfully doubled its gender diversity to 15.3% and maintains a 'zero harm' operation, reflecting strong safety performance. Social responsibility initiatives include the 'Energy4Good' program, supporting 75 underprivileged students with scholarships to foster their entry into the labor market.

    08

    STATCOMs and Grid Stability

    The market for STATCOMs, crucial for grid stability in a renewable-heavy energy landscape, experienced a muted H1 FY26 with fewer project finalizations. However, management expects new STATCOM orders to emerge soon due to unavoidable demand as India progresses on its renewable journey. The company's STATCOMs are largely localized in Goa, with only specific components like semiconductors imported, contributing to a strong market share.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.