SIEMENS LTD Profit SHOCKER: 41% Drop Post-Demerger! Is Your Investment Safe?

Author

Abhay Singh | Whalesbook News Team

Detailed Coverage:

Siemens Ltd, the Indian subsidiary of the German multinational Siemens AG, has announced its financial results for the fourth quarter ended September 30, 2025. The company reported a significant 41% year-on-year decline in its consolidated net profit, which fell to Rs 485.4 crore from Rs 831.2 crore in the same period last year. This marks the second quarterly financial report following the demerger of its energy business into a separate entity, Siemens Energy India Ltd, in April 2025.

Despite the drop in net profit, Siemens Ltd saw a healthy increase in its operational revenue, which rose by over 15% to Rs 5,171.2 crore in the September 2025 quarter, compared to Rs 4,457 crore in the previous year's quarter. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw an increase, rising 13% YoY to Rs 617.8 crore, though the EBITDA margin remained flat at 12%. The company's order book also showed positive momentum, with new orders increasing by 10% to Rs 4,800 crore.

Sunil Mathur, Managing Director and CEO of Siemens Ltd, attributed the revenue growth to strong performances in the Mobility and Smart Infrastructure segments. However, he noted that volumes in the Digital Industries business were impacted by lower reach and muted private sector capital expenditure (capex).

Impact This news indicates a mixed financial performance for Siemens Ltd post-demerger. The decline in net profit, despite revenue growth, might concern investors, highlighting challenges in specific business segments like Digital Industries. However, the strong revenue and order book growth, particularly in Mobility and Smart Infrastructure, are positive indicators. The market will likely assess how the demerged structure performs and whether the company can overcome the headwinds in its Digital Industries segment. Investors will be watching the company's ability to leverage its core strengths and the overall economic climate affecting capital expenditure. Rating: 7/10

Difficult Terms: * Demerger: The separation of a company into two or more distinct entities. In this case, Siemens Ltd separated its energy business into Siemens Energy India Ltd. * YoY: Year-on-Year. This refers to a comparison of financial results from one period (e.g., a quarter) to the same period in the previous year. * EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance before accounting for non-operating expenses and income. * Fiscal Year: A 12-month accounting period that a company uses for financial reporting. Siemens Ltd follows a fiscal year from October to September. * Capex: Capital Expenditure. This refers to the money a company spends to acquire, maintain, or upgrade its physical assets, such as property, buildings, or equipment.