Siemens Limited — Q2 FY26 earnings call

Call held 12 Dec 2025

Management summary

Siemens Limited conducted its first in-person analyst meet post-Energy demerger, focusing on three core segments. Management emphasized the shift toward solution-selling rather than individual products, with significant investments in digital transformation technologies. The company highlighted strong performance across all segments despite muted private sector CapEx, positioning for accelerated growth as consumption and private investment are expected to recover.

Highlights

  • Post-demerger focus on three core segments: Digital Industries, Smart Infrastructure, and Mobility

  • Continuous growth achieved in both top-line and bottom-line over 5-year period

  • 50% of Digital Industries business comes from manufacturing, metals, and automotive verticals

  • Smart Infrastructure showing strong growth with 10%+ market expansion

  • Mobility segment expanding from electrification/signaling to rolling stock with locomotive orders won

  • Investment in virtual PLC technology and end-to-end digital solutions

  • Strong position in sustainability and recognized as governance leader

Key financials

  1. Digital Industries Growth (Siemens content) 5% +5%YoY
  2. Smart Infrastructure Market Growth 10% +10%YoY
  3. C&S Volume Growth 20% +20%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

Digital Industries

  • Growth Rate Digital Industries · With private CapEx recovery · Medium confidence 8%+
    The expectation is, with the uptake in private sector CapEx that we hope will kick in, that this will now grow from around 5% to 8%, possibly more

    — Sunil Mathur

Mobility

  • Revenue Growth Mobility · Ongoing · Medium confidence 6-8%
    He gave the guidance on 6%-8% because it's transfer price driven

    — Management

Manufacturing Productivity

  • Productivity Gap Manufacturing Productivity · Long term · High confidence Bridge 25% gap from current 75% to Germany's 99.99%
    India's average productivity level is 75%. There is no way you will bridge 25% of productivity just by skilling people. Technology will be that differentiator

    — Sunil Mathur

Market context

  • GDP Growth Economic Outlook · Medium term · Medium confidence 7-7.5%
    I think the question is can we get to a 7-7.5% growth rate, particularly taking into account the fact that private CapEx has been muted

    — Sunil Mathur

Risks & concerns

  • US Tariff Impact

    medium

    Indirect impact through sentiment and uncertainty rather than direct impact on CapEx industries in India

    Monitoring closely

  • Muted Private Sector CapEx

    medium

    Waiting for consumption recovery to drive private investment, expecting signs from April 2026 onwards

    Cautiously optimistic

  • Working Capital Intensity in Mobility

    low

    High working capital needs due to locomotive project ramp-up, expected to stabilize

    Temporary phase

  • Currency Volatility

    low

    Continues to impact but company has outperformed markets despite this headwind

    Managed effectively

Q&A highlights

3 direct
Kavach Strategy Direct
We want to be a serious player in Kavach. We already have a first developmental order from the Indian Railways in Bangalore

Confirms Siemens' commitment to the railway safety system market beyond just locomotives

Asked by Sameer Thakur - Ambit

Revenue Split and Solution Selling Partial
Most of the solution, which is primarily DI and SI, would be the kind where we offer the products and the system integrator stitches it together

Clarifies business model shift toward solutions while maintaining product margins through partnerships

Asked by Jonas - Aditya Birla

Cash Flow Concerns Direct
CapEx investment has gone up... we invest a lot in working capital right now for the Mobility business... the majority is done, so it will stabilize

Addresses investor concerns about weaker operating cash flows, attributing to Mobility ramp-up which is stabilizing

Asked by Participant

C&S Integration and Strategy Direct
we have identified clear markets in which C&S will enter into, which are the mid-level markets... Siemens stays in the premium markets

Clear market segmentation strategy avoiding cannibalization while expanding addressable market

Asked by Amit Mahawar - UBS

1 min read 5 chapters

Detailed narrative

Post-Demerger Strategic Focus

Following the demerger of Siemens Energy India Limited, Siemens Limited is now focused on three core segments: Digital Industries (50% from manufacturing, metals, automotive), Smart Infrastructure (40-50% from T&D, data centers, commercial buildings), and Mobility (government-facing, expanded to rolling stock). The company is transitioning its financial year from September to March ending cycle.

Technology Leadership and Digital Transformation

Siemens is leading with virtual PLC technology enabling remote software upgrades, COMOS plant engineering software for complete digital factory design, and AI-powered simulation capabilities. The company emphasizes bridging India's 25% productivity gap through technology rather than just skilling, positioning for manufacturing hub aspirations.

Solution-Centric Business Model Evolution

The company is shifting from selling individual products to providing end-to-end solutions through partnerships with system integrators, distributors, technology players, and IT firms. This approach maintains product margins while expanding addressable market through curated customer solutions.

Economic Environment and Growth Outlook

Management sees India's 6.5% GDP growth as a baseline with potential for 7-7.5% as consumption recovers following income tax and GST reductions. Private sector CapEx recovery is key, with early signs in steel, cement, and automotive sectors. New-age CapEx in electronics, batteries, and solar continues strong.

Viksit Bharat Alignment and Sustainability Leadership

Aligned with India's ambition to grow from $4 trillion to $30 trillion economy by 2047, requiring 9-10% growth rates. Strong focus on sustainability both internally and helping customers achieve carbon-friendly goals, recognized as leader in governance and sustainability.

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