Siemens (SIEM IN) (Neutral) - FX and commodity headwinds to weigh on margins

Research evidence excerpt

Siemens (SIEM IN) (Neutral) - FX and commodity headwinds to weigh on margins

Global Markets Research

Siemens SIEM.NS SIEM IN 29 May 2026

EQUITY: CAPITAL GOODS

FX and commodity headwinds to weigh on margins Rating Remains Neutral

Target priceFY27F EBITDA margin 73bp lower than TTM; maintain Increased from INR 3,700Neutral with a higher TP of INR3,700 INR 3,343

WereviseourfinancialsforSiemensIndia(SIEM)toincorporatethechangeinthe Closing price INR 3,879 27 May 2026company’sfinancial yeartotheApr-MarcyclefromOct-Septearlier.

Led by the MO segment, OI grew 33% y-y in the quarter ending March 2026 Implied upside -4.6%

In the March 2026 quarter, SIEM’s order inflows (OI) grew 33% y-y to INR51bn. Mobility (MO) OI

grew 75% y-y, driven by a large order from the parent for the supply of bogies and components. Market Cap (USD mn) 14,435.0

Smart Infrastructure (SI) OI grew 18% y-y, led by power utilities, renewables and data centers (DC). ADT (USD mn) 19.9

Digital industries (DI) OI remained flattish (+1% y-y) as ordering materially picked up only in select

sectors such as metals, cement and F&B. Order backlog (OB) stood at INR450.3bn (including our Relative performance chart

estimated loco OB of INR250bn) as of March 2026 (+9% y-y) with a book-to-bill ratio of 2.5x. The

commencement of the execution of the large loco order boosted revenue growth in the MO

segment in the quarter. Exports accounted for 13% of revenue in TTM Mar’26 (TTM), flattish y-y.

EBITDA margin fell 287bp/136bp y-y/q-q due to higher commodity costs and INR’s depreciation.

SI/DI were most impacted and their EBIT margins fell 406bp/223bp y-y.

Sizeable opportunities emerging due to strong data center capex tailwinds

SIEM’s management is bullish on the data center (DC) capex theme in India and expects India’s