Siemens Ltd: First Take: Margin Pain Offset By Decent Order Inflows

Research evidence excerpt

J P M O R G A N

Asia Pacific Equity Research

11 August 2026

Siemens Ltd

First Take: Margin Pain Offset By Decent Order Inflows

Underweight

SIEM.NS, SIEM IN

Price (10 Aug 26):Rs3,914.30

Price Target (Mar-28):Rs3,334.00

Our First Take:

Siemens reported a very weak EBITDA margin in 1QFY27 at 9.1% – down 345bps

y/y and 47 bps q/q and well below JPMe at 12.3%. As a result, despite revenue

growth of 15% y/y (inline with JPMe), consolidated PAT at Rs3.4bn fell 19% y/y

and was 24% below JPMe.

The margin was under pressure due to commodity price inflation and INR

depreciation.

However, the order inflow at Rs63.3bn grew 17% y/y (inline vs JPME). Order

inflow growth was healthy in 1Q.

Smart Infra revenue grew 11% y/y (4% below JPMe). EBIT margin at 7.6% fell

sharply.

Mobility revenue grew 13% y/y (broadly inline) and EBIT margin at 10.2% (v/s

3.8% y/y and 6.6% q/q) was helped by a one-time gain of Rs390mn.

India Industrials, Electric Utilities,

and Infrastructure Sectors

Atul Tiwari AC

(91-22) 6157-3582

Rishabh Gupta

(91-22) 6157-3429

Muskan Agarwal

(91-22) 6157-3226

J.P. Morgan India Private Limited, J.P. Morgan

Tower, Santacruz(E), Mumbai - 400098, SEBI

Registration: INH000001873, (91-22) 6157-3000.

Digital Industries revenue grew 25% y/y (8% ahead) and EBIT margin at 5.1%

expanded 282bps q/q.

Key Positives

Demand conditions were good in 1QFY27 as shown by healthy order inflows.

Sequential improvement in Digital Industries EBIT margin was positive.

Key Negatives/Question Marks

Continuing EBITDA margin compression is a key negative from the results.

Likely Changes to Consensus

Consensus is likely to wait for more clarity on the timing and extent of price hikes

to pass-on the commodity price and currency depreciation pressures.

Expected Stock Reaction

The stock price is likely to remain broadly sideways as the market waits for more

clarity on the evolving margin outlook due to the interplay of commodity inflation

and pricing action.