Siemens Limited Earnings Summary — Q1 FY2027
Siemens Limited Reports 14.8% Revenue Growth Amidst Strategic Divestment of LVM Business
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹4,714 Cr is 14.8% higher year-on-year.
- Revenue has compounded at 5.8% annualised over the last 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹2,143 Cr is 406.7% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 54.7% annualised across the period.
- Operating margin stands at 9.1% in Q1 FY2027.
- Operating margin compressed by 346 bps year-on-year.
- Over the last two years operating margin has contracted by 376 bps.
- PBT margin is 48.0%.
- Expenses grew 19.3% against revenue growth of 14.8%.
- Operating profit of ₹431 Cr is 16.7% lower year-on-year.
- Operating leverage has been under pressure recently.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 60/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 4,714 | 4,618 | 3,831 | 4,900 | 4,108 | 4,029 | 3,360 | 4,457 | 3,763 | 4,152 |
| Expenses | Improving | 4,283 | 4,174 | 3,409 | 4,291 | 3,590 | 3,584 | 2,974 | 3,912 | 3,277 | 3,516 |
| Operating Profit | Stable | 431 | 444 | 422 | 609 | 517 | 445 | 387 | 545 | 485 | 637 |
| Operating Margin | Softening | 9.1% | 9.6% | 11.0% | 12.4% | 12.6% | 11.0% | 11.5% | 12.2% | 12.9% | 15.3% |
| Other Income | Volatile | 1,917 | 116 | 19 | 126 | 125 | 341 | 423 | 544 | 298 | 479 |
| Interest | Volatile | 7 | 14 | 6 | 4 | 5 | 2 | 3 | 18 | 5 | 21 |
| Depreciation | Stable | 78 | 74 | 71 | 69 | 69 | 66 | 66 | 62 | 70 | 63 |
| Profit Before Tax | Volatile | 2,263 | 472 | 364 | 662 | 569 | 718 | 741 | 1,009 | 709 | 1,032 |
| Tax | Stable | 119 | 101 | 86 | 177 | 146 | 135 | 126 | 178 | 131 | 229 |
| Net Profit | Volatile | 2,143 | 370 | 277 | 485 | 423 | 582 | 614 | 831 | 578 | 803 |
| Net Margin | Volatile | 45.5% | 8.0% | 7.2% | 9.9% | 10.3% | 14.4% | 18.3% | 18.6% | 15.3% | 19.3% |
Key Takeaways
- Revenue from continuing operations grew by 14.8% YoY to ₹47,137 million, driven by strong domestic demand.
- New Orders rose 16.5% to ₹6,328 crore; excluding a large prior-year rail order, underlying growth was a robust 43.9%.
- Net Profit surged due to a one-time provisional gain of ₹20,990 million from the sale of the Low Voltage Motors (LVM) business to Innomotics India.
- Operating margins compressed to 7.6% (from 11.0% YoY) due to higher commodity prices, depreciating INR, and increased material costs.
- The Smart Infrastructure segment remains the primary growth engine, supported by grid modernization, data centers, and commercial real estate.
- Mobility business benefited from a one-time gain of ₹390 million during the quarter.
- The company is progressing with the amalgamation of its wholly-owned subsidiary, Siemens Rail Automation Private Limited (SRAPL).
- Order backlog remains healthy at ₹46,670 crore, representing a 9.6% increase over the previous year.
Management Guidance
Management remains focused on profitable growth across all business segments, citing strong domestic demand from both private and public sectors. The outlook emphasizes capitalizing on grid modernization and industrial digitalization.
Sentiment Shift
Stable
While headline profits were skewed by a large divestment gain, the underlying order book and revenue growth remain strong despite near-term margin pressure from input costs.
Outlook
The company expects continued momentum in Smart Infrastructure and Digital Industries, though management warns of ongoing volatility in commodity prices and foreign exchange rates that may impact margins.
From the Annual Report (Key Quotes)
“Domestic demand continues to be strong during the quarter, with ordering by both the private and public sectors.”
“Our focus continues to be on profitable growth across all our businesses.”
“Profitability was impacted due to volatility in commodity prices, foreign exchange and increase in material costs.”
Official Quarterly Documents
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This summary is AI-generated from Siemens Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.