Siemens Limited — Q2 FY25 earnings call

Call held 20 May 2025

Management summary

Siemens reported mixed results with strong order growth across most segments except Low Voltage Motors. Digital Industries continues normalization cycle with first signs of recovery, while Smart Infrastructure and Mobility show robust performance. PAT impacted by extraordinary items including prior year property sale gain and current year demerger expenses.

Highlights

  • Order growth of 43.5% YoY with healthy Book-to-Bill ratio of 1.25

  • Order backlog at ₹415 billion, up 7.2% YoY providing good visibility

  • Revenue growth of 2.5% YoY despite DI normalization challenges

  • EBITDA margin at 12.5%, marginally impacted by volume and cost elements

  • Siemens Energy demerger completed on March 1, 2025

Concerns

  • Low Voltage Motors Business Future

Key financials

  1. New Orders ₹0 Cr +43.5%YoY
  2. Revenue ₹0 Cr +2.5%YoY
  3. EBITDA Margin 12.5% 0%YoY
  4. Order Backlog ₹41,500 Cr +7.2%YoY

What they filed

Q1 FY27: revenue up 15.6%, net profit up 475.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue3,974 2,948 3,579 3,629 4,363 +10%3,398 +15%4,109 +15%4,195 +16%
EBITDA453 299 364 424 513 +13%275 −8%357 −2%383 −10%
Net profit775 563 674 369 420 −46%209 −63%311 −54%2,122 +475%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Business Strategy

  • Export Share Growth Business Strategy · 3-5 years · Medium confidence 20%
    our intent is to grow the exports. They will grow or we will aim to grow them primarily in the SI and the Mobility businesses

    — Sunil Mathur

Manufacturing

  • 9000 HP Locomotive Production Manufacturing · Next 2-3 years · High confidence Ramp up from 5 to 20 to 60 to 100 locomotives
    ramping up from 5 to 20 to 60 to 100 eventually

    — Sunil Mathur

Profitability

  • Smart Infrastructure Margins Profitability · Going forward · High confidence Continue to increase
    Yes, I would expect them to actually increase

    — Sunil Mathur

Risks & concerns

  • Low Voltage Motors Business Future

    high

    After Siemens AG sold global Innomotics business, exploring future options for LVM business due to technology dependency

    Exploring options for the business

  • Private Sector CapEx Slowdown

    medium

    Private CapEx remains muted affecting DI business, mixed developments in conventional verticals including automotive, food & beverage

    Watchful but optimistic about recovery

  • Digital Industries Normalization

    medium

    DI margins dropped significantly due to volume decline, changed product mix, and increased import prices

    Seeing early signs of recovery

  • Geopolitical Trade Tensions

    medium

    Global trade tensions causing supply chain disruptions and longer delivery periods

    Monitoring impact on supply chains

Q&A highlights

3 direct
Digital Industries Margin Recovery Direct
this is very, very much very clearly a volume story. And the more you sell, the greater the volumes because the more you are able to cover your fixed costs

Clarifies path to profitability recovery in DI business through volume growth

Asked by Harshit Patel - Equirus

Mobility Market Opportunities Direct
effectively I would see this market pretty robust with the visibility that we have already in the short term of the pipeline, I see this pretty robust in the next five to seven years

Provides confidence on long-term Mobility segment prospects

Asked by Subhadip Mitra - Nuvama

Export Growth Strategy Direct
the intent very clearly of the global parent is to source out of India. So, whether this is 3-5 or it is over 5, I can't tell you

Confirms parent company strategy to increase India sourcing for global markets

Asked by Jonas Bhutta - Aditya Birla Capital

1 min read 4 chapters

Detailed narrative

Digital Industries Normalization Cycle

DI business showing signs of bottoming out after significant normalization cycle. Order growth momentum visible from ₹7.6B in Q4 FY24 to ₹9.5B in Q2 FY25. Book-to-Bill ratio of 1.0 supports normalization view. Margins impacted by lower volumes, changed product mix, and import price pressures. Management expects return to pre-COVID margin levels of 6-8% as volumes recover.

Smart Infrastructure Strong Performance

SI business delivering consistent growth with 14% order growth in Q2 and 6.6% revenue growth. EBITDA margins improved from 15.3% to 16.3% driven by electrification demand, power utilities growth, and emerging verticals like semiconductors and data centers. C&S Electric acquisition performing well with strong export growth.

Mobility Robust Pipeline

Mobility shows strong order growth of 300% in H1 driven by rolling stock, railway electrification, and export orders. 9000 HP locomotive project on track with prototype under homologation. Revenue slightly down due to normal project delivery cycles. Strong pipeline for railways, metros, and signaling with 5-7 year visibility.

Market Environment Mixed

Public CapEx driving growth in power utilities, railways, metros, and emerging verticals. Private CapEx remains muted with mixed performance across conventional sectors. Automotive, F&B, machine building showing flat growth while commercial buildings, pharma, cement performing reasonably well.

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